First-class options on Tauranga’s Second Ave
As Tauranga’s CBD undergoes a transformation with major construction under way and moves to make the city’s heart more accessible and attractive, a well-sized commercial site in the early avenues is garnering significant attention from investors and developers.
The 1174sq m landholding across two rectangular-shaped adjoining lots at 72-76 Second Ave, between main arterials Devonport and Cameron roads on the CBD’s southern perimeter, supports two similarly-sized single-level commercial buildings occupied by Best Buy Asian Supermarket and Top in Town Variety Store.
The combined sites have an expansive profile to Second Ave and are next to a service lane that provides side and rear access to on-site parking, with 16 stacked parks shared evenly between the two buildings.
The property returns annual net income of $180,000 plus GST and outgoings, with the current occupiers having rights of renewal taking final lease expiries out to the end of 2030.
This provides valuable holding income for landbankers keen to secure a stake in the city’s immediate fringe, where favourable zoning and underlying land values provide robust redevelopment options.
Zoned City Centre, the property has a 16m height overlay which provides long-term potential for a multi-level mixed use development.
Ryan, Brendon and Lynn Bradley of the Bayleys Tauranga commercial team are taking the property to auction on Wednesday April 24, with several parties already indicating they will attend.
The long-term owners originally ran their own business from the site before leasing out the tenancies, and are divesting the asset to concentrate on other projects.
Ryan Bradley said any property in the early avenues is sought-after real estate, particularly land with future development upside and ease of access. With final expiry dates aligned across the two tenancies, a new owner could benefit from income through to late 2030 while formulating ideas for the site.