As Tauranga’s CBD undergoes transformational change with major construction work underway and proactive 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 forward-thinking investors and developers.
The 1,174sqm landholding comprises two rectangular-shaped adjoining lots at 72-76 Second Avenue, between main arterials Devonport and Cameron Roads on the southern perimeter of the CBD.
It currently supports two similarly-sized single-level commercial buildings occupied by two tenants – Best Buy Asian Supermarket and Top in Town Variety Store.
The combined sites have an expansive profile to Second Avenue and are positioned adjacent to a service lane that provides side and rear access to onsite parking facilities with 16 stacked carparks shared evenly between the two buildings.
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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 future redevelopment options.
Zoned City Centre, the property has a 16-metre building height overlay which provides long-term potential for a multi-level/mixed use development in arguably one of the city’s best fringe locations, according to agents marketing the opportunity.
Ryan, Brendon and Lynn Bradley of the Bayleys Tauranga commercial team are taking the Second Avenue property to auction on 24th April, with several interested parties already indicating they will actively attend the auction.
The property’s long-term owners originally ran their own business from the site before leasing out the two tenancies, and are divesting the asset to concentrate on other projects.
Any property located in the early avenues is sought-after real estate, said Ryan Bradley – particularly for landholdings with future development upside and ease of access.
“The CBD itself can be harder to navigate and that is especially so right now as traffic movements are compromised somewhat due to construction and other initiatives at play.
“Land values have been very strong in Tauranga and given that the Second Avenue offering is located close to the progressive Thirty Eight Elizabeth mixed commercial-residential development, it’s clear to see that future redevelopment fundamentals are in its favour.
“The flat land, its footprint of over 1,000sqm and the service lane down one side and in behind the property further underscores its value.”
Bradley said with final expiry dates across the two tenancies aligned, a new owner can benefit from the income through to late-2030 while formulating ideas for the site.
“We’ve seen well-resourced entities investing in the city and this, coupled with plans to further revitalise the city centre and its connection with the waterfront, means Tauranga has plenty to be positive about and also more to look forward to.
“The Thirty Eight Elizabeth project is a game-changer for how the city can look and feel and offers retail, hospitality, apartments and villa-style townhouses right in the centre of Tauranga.
"The commercial component is up and running while the residences are due to be actively marketed in coming weeks.
“Meanwhile the council is progressing its new Te Manawataki o Te Papa civic precinct led by developer Willis Bond on a site between Wharf and Hamilton Streets in the city centre, and also its administration building – the country’s largest mass timber office building – at 90 Devonport Road.
“There’s the Craigs Investment Partners’ building in Devonport Road, and the Northern Quarter office development on The Strand also underway so the city is really evolving.”
In the subject property’s immediate vicinity there’s a mix of occupiers including larger-scale retail with Repco, Noel Leeming, and Chemist Warehouse along with smaller independent retailers, trade and showroom occupiers and service providers.
- Supplied by Bayleys
