Fashionable retail and commercial premises placed on the market for sale
The land and buildings housing a ‘fashionable’ mix of retail and commercial tenancies – along with a variety of
marketing orientated businesses - have been placed on the market for sale.
The property at 185 – 187 Maunganui Road in Mount Maunganui – named Steele Building - contains three street level retail
outlets and three companies involved with creating graphic artwork used for promotional and marketing branding.
The 522 sqm two level Steele Building sits on 918 sqm of rectangular shaped freehold land zoned for commercial use under
Tauranga City Council’s plans. In addition to the main building, there is also a converted and refurbished 86 sqm
garage/studio at the rear of the premises which is let out on a commercial basis.
Combined, the six commercial tenancies within 185 – 187 Maunganui Road generate a combined rent roll of $154,745 plus
GST. Tenancies within the property consist of:
• Womens’ fashion clothing retail outlet Neche Design Store currently on a lease expiring later this year, with
two further three year rights of renewal – generating annual net rental of $38,000 plus GST
• Sports shoe retailer Gallery Athletic Limited currently on a lease expiring next year – generating annual net
rental of $38,000 plus GST
• Games and puzzle shop Just for Fun Limited currently on a lease expiring next year – generating annual net
rental of $27,330 plus GST
• Branding and graphic design agency Woods Creative Ltd currently on a year lease expiring next year – generating
annual net rental of $21,857 plus GST
• Customer relationship management consultancy BrandXP Limited currently on a lease expiring later this year –
generating annual net rental of $20,778 plus GST
and
• Photography workshop Tulloch Studio currently on a lease expiring next year, with two further one year rights of
renewal – generating annual net rental of $8,780 plus GST.
The six tenancies lease 11 of the 20 car parks available which are accessed from Shadelands Lane at the rear of the
site. Steele Building is being marketed for sale at auction on February 28 through Bayleys Tauranga. Salesperson Brendon
Bradley said the building and its tenants all benefitted from the high profile garnered from being located on Mount
Maunganui’s busiest street.
“With multiple tenancies spread across a balanced raft of economic and retail sectors, the occupancy portfolio within
Steele Building offers a spread risk investment profile for any new investor owner,” Mr Bradley said.
Steele Building was constructed in 1955 from reinforced concrete framing and reinforced concrete perimeter walls, with
the standalone ground level garage at the rear of the property added at a later stage.
Mr Bradley said the building’s floorplate and positioning was reflective of many neighbouring commercial properties in
the area – sitting directly onto the busy retail strip with 15m of pavement frontage divided relatively equally among
the three retail tenancies, with an abundance of occupant car parking at the rear.
The three retail tenancies each have their own individual office/storage space at the rear of the shops, and together
share two externally accessed toilets. Stairs from the front of the building lead to the first floor whose individual
commercial office tenants have their own toilet and kitchenette facilities.
The northern end of Maunganui Road where Steele Building sits contains the mount’s main proliferation of retail
tenancies sustaining high street shopping – featuring a mix of fashion outlets, gift shops, art galleries, cafes, bars,
restaurants, and amenity businesses. The property’s commercial zoning allows for potential future redevelopment of up to
12m high in a mixed use format.
“Already there are multi-storey apartment blocks emerging in this part of the Mount along the inner harbour aspect of
Mount Maunganui,” Mr Bradley said.
He said the future use development covenant would allow for an additional three storeys of either commercial or
residential premises to be built above the existing street frontage level.
“In its current configuration, there is potential to generate additional income from the site by leasing out some of the
additional nine non-designated car parking spaces at the rear of the premises. Additionally, this availability of
parking spaces would be a benefit for any new tenancies taking up residency in Steele Building,” he said.