A well-located property primarily occupied by medical/healthcare-related businesses in the seaside suburb of Papamoa in the Bay of Plenty, will be auctioned next month.
The property at 3 Palm Springs Boulevard, with additional access off Papamoa Beach Road, is home to Papamoa Pines Medical Centre, Palm Springs Pharmacy, Papatoetoe Family Dentist and Waiapu Anglican Social Service Trust Board.
The property was built in 2005 for its current owners, a Bay of Plenty family trust, and has a sound leasing history.
The family trust is heading in new directions; hence the property is to be sold to realign its assets.
Marketed by Lloyd Davidson and Rory Brown of Bayleys Tauranga, the property will be auctioned at 1pm, Wednesday 9th September (unless sold prior).
Davidson said the residential growth being seen in Papamoa and the increasing demand on medical services in the area, underpins the credentials of the property which occupies a 2,174sqm residentially-zoned site, with medical use consent.
“This is a busy health hub and clearly fulfils a necessary role in the provision of community health services in the Papamoa catchment,” said Davidson, adding that there is nothing else comparable on the market in Papamoa currently.
“As an asset class, medical-related property is seen as defensive and in the current pandemic climate when a concerted health response has been required and expected, its appeal as an investment proposition has been elevated even further.
“Added to this is the current high level of investor confidence in the wider Bay of Plenty and a corresponding shortage of available opportunities in the low interest rate environment that seems to be holding.”
The Palm Springs Boulevard property returns $145,479.20 net per annum with the tenant businesses on varying lease terms. Across the property, the weighted average lease term is just over four years and it represents a desirable split-risk investment proposition for an investor.
There are 32 onsite car parks and an ambulance bay to the rear of the site. The doctors’ practice occupies 268.08sqm, the pharmacy 117.2sqm, dentist practice 96.64sqm and the Waiapu Trust Board, 114.5sqm. There is a small 50sqm vacant tenancy within the complex.
“This would be suitable for a physiotherapist, skin specialist, podiatrist or similar business that could leverage off the existing general practice, pharmacy and dental businesses in a one-stop-shop sense,” said Davidson.
Thinking further ahead, Davidson says this property is well-positioned to take advantage of the significant residential growth and change that is happening in Papamoa and it is feasible that in time, the land could revert to its underlying residential zoning.
“Development in the Tauranga area is expected to continue to move eastwards and Papamoa is proving enduringly popular for its lifestyle benefits and proximity to Tauranga city,” said Davidson.
“Papamoa is now Tauranga’s largest suburb and I think it’s highly likely that in the not too distant future, Papamoa will ‘join hands’ with Te Puke and become its own micro-province.
“The demand for existing residential housing stock and the ready uptake of newly-released sections in Papamoa shows that the appeal of this seaside suburb is not abating and that should give confidence to an investor considering this large, flat site with dual access.”
Other businesses in the immediate area include Best Start Childcare, PAP House Restaurant and Bar and a block of independent shops including takeaway businesses, a superette, hair salon and real estate operator.
Davidson said the eastern arterial link has opened up Papamoa’s accessibility with Te Puke within a 10-minute drive and Tauranga CBD and Mount Maunganui around 15 minutes away
Property address: 3 Palm Springs Boulevard, Papamoa