Rare affordable Mount unit on long lease

A high-profile office and retail property at the gateway to Mount Maunganui’s hospitality strip is up for auction, offering investors a chance buy into a booming location at an affordable price point.

The 120sq m ground floor unit at the corner of Maunganui Road and Rata Street is part of a modern, mixed-use development a short walk from The Mount’s cruise ship terminal.

It has just been leased to a new long-term tenant who was attracted to its excellent street appeal and the added bonus of covered on-site car parks.

Colliers International has been exclusively appointed to market Unit G, 314 Maunganui Road for sale by auction at 11am on Thursday 21 February, unless it sells earlier.

Simon Clark, Managing Director of Colliers Tauranga, describes it as a great first time commercial property investment or addition to an existing portfolio.

“This is a blindingly good opportunity to purchase an affordable retail and office investment in one of New Zealand’s most highly sought-after commercial locations.

“Built in 2006 and recently refurbished, the unit is part of a four-level complex with office and retail on the ground floor, first floor offices, and apartments on the upper floors.

“The property has six covered car parks, three of which are leased by the tenant, with the remainder on vendor leaseback.

“The successful bidder will benefit from long-term rental income as well as the solid capital gains enjoyed in this tightly held beachside commercial location.

“Affordable opportunities like this are rare in such a great downtown Mount Maunganui location, so this is one auction that savvy investors will not want to miss.”

The Commercial Business zoned property faces north onto Maunganui Road with a wide retail frontage and central doorway.

It can also be accessed from the rear, where the tenancy has a single covered car par, complemented by an additional five spaces in the secure basement car park below.

The high stud unit is well appointed with suspended ceilings, carpets, LED lighting, air-conditioning, internal partitioning and a toilet/kitchenette.

It is part of a low-maintenance mixed-use complex that is fully managed by a professional body corporate with a long-term maintenance plan and fund.

The property returns $49,800 plus GST in net annual rent.

Tenant Freshmax NZ Limited is signed to a new six-year lease returning $45,800 plus GST in rent, with reviews to market every three years.

Two rights of renewal of three years each extend the final lease expiry to November 2030.

Three car parks on vendor leaseback return $3,900 plus GST in net annual rent. The new owner will have the right to cancel the leaseback, offering scope for uplift.

Colliers Broker Duncan Woodhouse says the building is superbly located on a prominent corner at the gateway to the main retail hospitality area of Mount Maunganui.

“The tenancy’s Maunganui Road frontage benefits from a high number of passing vehicles and pedestrians travelling north and south.

“During the summer, hundreds of thousands of local tourists are attracted to The Mount for its beaches, walks up and around Mauao, and wide range of retail and hospitality offerings.

“In addition, more than 200,000 international tourists come into the Port of Tauranga on cruise ships and spread out along the retail strip of The Mount.

“With it prime position in a sought-after location, the unit for auction is perfectly poised to reap the rewards of The Mount’s booming commercial property market.”

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