Riding the Ohope commercial property wave
22 Pohutukawa Avenue, Ohope Beach, Eastern Bay of Plenty. Sold on 15th May 2017.
- 501m² freehold seaside site with outstanding profile and frontage to Pohutukawa Avenue
- 276.7m² two-level building with long-established ground floor Quay Café tenancy and a residential flat above
- Four-year lease in place from 1st May 2015, with 2x4-year ROR
- Annual net rental $30,624
- Tightly-held coastal location
- Rateable Value - $465,000
• On the market for the first time in 26 years
• National Total Property marketing campaign with auction method of sale
• Property marketing generated 73 enquiries and 23 inspections
• Five active bidders on auction day
• SOLD under the hammer to a Wellington-based investor for $625,000 at a 4.9% yield
Investors from the Bay of Plenty and right throughout New Zealand were keen to secure this well-located Ohope Beach property.
The prime location across the road from the beach, the surf club and a popular reserve area combined with an established tenant and their existing lease which has a final expiry in 2027 made this property a winner.
The property has always had food-related business tenants, however, with a Residential 1 zoning in place, its long-term future – beyond the existing café lease – could well change given the popularity of the coastal town.
After determined competition among five bidders, a Wellington-based investor who has a holiday home at Ohope Beach emerged as the new owner.
Ohope Beach residents Ted and Alison Koia decided that “at their age” it was time to sell up their commercial property assets. In 2016, they sold the Whakatane building they’d bought in the 1980s and then in 2017, this Ohope Beach property they’d owned for 26 years.
“We bought the Pohutukawa Avenue property as a straight-out investment,” says Alison.
“Ted’s Whakatane born-and-bred and he’d always fancied owning this property. Over the years, various tenants have made improvements to the building – at their expense and with our knowledge – and it’s been a great property to own.”
Brendon and Lynn Bradley of Bayleys Tauranga handled the sale of the property and on auction day, the Koias listened to the proceedings on the phone from the South Island where they were on holiday.
“Right throughout the listing period we were kept really well informed of feedback and we were delighted with the outcome achieved. It was such a simple process,” says Alison.
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