A high-profile two-storey building in the middle of Mt Maunganui with a strong tenant covenant offers buyers the opportunity to purchase a premier split-risk investment that will provide long-term passive income.
257 Maunganui Road has 1170sq m of total net lettable area on a site spanning 1359sq m that includes 19 dedicated car parks.
The property is spread across two freehold titles and is currently occupied by a mixture of medical and legal tenants, providing $276,265 plus GST in total net annual rental income.
There is potential for a rent increase with a rental review available to the new owner from 1 December 2021.
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Colliers brokers Grant White and Simon Clark have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Friday 17 December, unless sold prior.
The property is purpose-built and was opened in 1988 for a select group of Mt Maunganui’s medical professionals.
The current tenants include M H Rogers Optometrist, Pharmacy 257, the Mount Medical Centre, Abernethy Broatch Law, Mount Maunganui Dental Centre, and the Mount Counselling & Mediation. The majority of the tenants are signed to long-term leases with multiple renewal options for the future.
White, commercial sales broker at Colliers Tauranga, says this property will hold significant appeal given the strong tenant covenant on offer.
“Some of the current occupants were among the original tenants when this building first opened more than 30 years ago,” White says.
“Of the existing agreements, some have final expiry dates ranging between 2037 and 2048, meaning this property is perfectly positioned as an investment that will provide passive income for the foreseeable future.
“Each tenancy has been fitted out to the tenant’s requirements, which includes specialist equipment and internal partitions making this a user-friendly site for the occupants in a highly accessible location.”
Clark, managing director at Colliers Tauranga, says this strategically located site enjoys excellent exposure on a busy road.
“The property is situated in the heart of the downtown Mt Maunganui shopping precinct within walking distance of all the amenities that are on offer in this beachside location,” Clark says.
“People are drawn to this location in their hundreds of thousands during the summer months to enjoy the surf beach and walking tracks around the Mount as well as the boutique shopping area that has great retail and hospitality offerings.
“When cruise ships are operating regularly again in the future, we will see vessels docking at the adjoining port with tourists spilling out into the busy downtown area.
“The adjoining Coronation Park is used for evening and weekend events, including The Little Big Markets and Gourmet Night Market, which is a huge drawcard for tourists and locals.”
Data from Infometrics suggests the Bay of Plenty economy has continued to perform incredibly well following the Covid-19 lockdown period in 2020.
Infometrics estimates that economic activity in the year to June 2021 is sitting 6.8 per cent higher than a year ago.
This rise compares to a growth rate of 4.2 per cent across the country, exemplifying the Bay of Plenty’s strength. Activity in the year to June 2021 is sitting 5.7 per cent higher than the same period in 2019, showing that despite lockdowns inflating current annual growth figures, the Bay of Plenty economy is still in a very strong position.
- Article supplied by Colliers
