A tenanted freehold commercial property on a high-profile corner site along a tightly held Tauranga strip, will be auctioned next month.
Situated at the junction of Fifteenth Avenue and Burrows Street, there is 579.8sqm of circa-1980s’ buildings and sealed yard areas on a 959sqm (more or less) flat, rectangular-shaped site.
There are two tenants – long-established Tauranga business The Trellis & Ply Centre, which has been trading for approximately 25 years, and Forklift Services Tauranga Limited, which has been in business for more than 30 years.
There are three access points to the property – all off Burrows Street – and The Trellis & Ply company has branded profile to Fifteenth Avenue.
This tenancy comprises a generous showroom with double entry doors, two offices, lunchroom and staff amenities, workshop with mezzanine storage and full-height roller door.
Forklift Services has street level office space, a workshop with three full-height roller doors and a mezzanine lunchroom.
Brendon, Ryan and Lynn Bradley of Bayleys Tauranga are marketing the property ahead of its 10th March auction date and describe the commercial and industrial market in the city currently as “red hot”.
Brendon Bradley said the vendors have owned the property for more than 20 years and strong investor interest is expected due to the shortage of comparable stock on the market, and the expected price point of this property.
“The rateable value is $765,000 and buyers with budgets above the $1 million mark know that opportunities such as this are spread thinly in the region – and like hens’ teeth in a highly sought-after location like Fifteenth Avenue,” he said.
“The value and appeal of the location is underpinned by a tenant roll-call in the area which includes market heavyweights such as Z service station, Versatile Buildings, Flooring Zone, Signature Homes, Stonewood Homes, Kennards Hire, and Bridgestone.
“It’s a proven trade and service business locality and as such, it’s a difficult one to predict a sales’ price on.
“The auction process will sort out value in buyers’ minds.”
Zoned commercial, the property returns an annual net rental $51,131 + GST and outgoings with potential upside given that Forklift Services is on a monthly tenancy and any future new lease could reflect the tight rental market for such properties.
The Trellis & Ply Centre has a 3-year lease from April 2019 and two, 2x3-year rights of renewal to be exercised.
Ryan Bradley said the opportunity could suit a passive or add-value investor, a proactive owner-occupier prepared to ride out the existing lease commitments or occupy part of the property, or a land-banker that appreciates the long-term hold value of such a well-located site.
“The property is strategically-positioned, as Fifteenth Avenue is a key transport arterial that forms part of State Highway 2A between the city centre and Welcome Bay, Maungatapu, Hairini and Ohauiti,” he explains.
“The CBD is approximately 3.3km away and Fraser Cove shopping centre – 1.4km.
“The site has excellent exposure to high daily traffic counts and the recent installation of traffic lights at the Fifteenth Avenue and Burrows Street intersection has streamlined access to this property.