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.