A multi-tenanted property anchored by Citizens Advice Bureau and a leading vape store has gone up for sale in a prized location on Tauranga’s CBD fringe.
The two-level building sits on the city’s ‘Golden Mile’ just south of the city centre on key arterial Cameron Road. The fully leased site offers a diversified commercial property investment combining office premises occupied by Citizens Advice, a retail store leased to Puffland, plus two storage tenancies.
The Cameron Road property generates a total annual rental return of $82,108 plus outgoings and GST per annum. The lease agreements lock in a mix of CPI and market rent reviews for future rental growth.
The site also has significant future redevelopment potential thanks to its location in a commercial zone seen as ripe for multi-storey residential and mixed use projects, such as the landmark Vantage complex next door.
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The freehold property at 367 Cameron Road, Tauranga, is being marketed for sale by Brendon Bradley and Ryan Bradley of Bayleys Tauranga. It will go under the hammer at an auction on May 29, unless sold prior.
The approximately 440sqm building sits on some 455sqm of fee simple land, zoned Commercial under the Tauranga City Plan.
Citizens Advice occupies its premises of some 95sqm on a current lease that runs through to 2027, with three further three-year rights of renewal. It pays an annual net rent of $27,000 plus outgoings and GST.
Citizens Advice is an independent non-profit community organisation that provides free information, advice and support on consumer rights, benefits, taxes, health, education and more. Its service is provided by some 2000 trained volunteers in more than 80 locations around New Zealand.
New Zealand-owned and operated family business Puffland pays a net rent of $28,000 plus outgoings and GST per annum for its approximate 118sqm retail premises. The current lease expires in 2026, with two further four-year rights of renewal.
With beginnings as a small vape shop opened in 2022 in Gate Pa, Tauranga, Puffland now has outlets throughout the city, and plans to open more.
Two storage tenancies of approximately 95sqm and 118sqm generate a combined rent of $27,108 plus outgoings and GST per annum.
Brendon Bradley said the main retail and office tenancies featured well-presented fitouts and took advantage of the high-profile location.
“These are nicely complemented by the two storage tenancies below with access from the rear. A right of way provides access to 10 on-site car parks, which are like gold dust for inner city tenants.
“The fully leased diversified tenancies in this two-level commercial property provide an attractive hands-off investment opportunity in a prime CBD-fringe location. This will appeal to both first-time investors and experienced property people who understand the importance of location to underpin future tenant demand, as well as the long-term redevelopment prospects,” said Brendon Bradley.
The development possibilities of this strategic location are in evidence next door in the form of Vantage, a new multi-storey commercial and residential complex that is now a landmark on the southern CBD fringe.
Ryan Bradley said the commercial property fundamentals underpinning projects like this would only intensify as the city’s population grows.
“Already New Zealand’s fifth largest city, Tauranga’s population is projected to swell by over 40 percent to more than 200,000 by 2050. The Bay of Plenty already outperforms much of New Zealand in the economic stakes and the region consistently tops the quarterly regional economic scoreboard.
“Positioned on a prime site on Cameron Road, between Fourth and Fifth Avenues, the site for sale has pride of place on Tauranga’s ‘Golden Mile’. Cameron Road is a core transport corridor that runs the length of the city, and the location also offers handy access to key arterials Devonport Road and the Tauranga Expressway.
“It also benefits from being on the edge of the city centre, which is undergoing a renaissance with numerous projects set to give the city a more dynamic heart,” Ryan Bradley said.
- Supplied by Bayleys
