Scaling commercial heights at popular Mount Maunganui
185-187 Maunganui Road, Mount Maunganui
- Prime freehold 918m² Mount Maunganui CBD site
- 522m² two-level retail/office building with three shops on the ground floor and office space on the first level
- 86m² rear garage studio plus 20 onsite carparks
- Split risk asset with six tenancies
- Returning $154,745 + GST
- Future potential for multi-level redevelopment
- Capital value is $2,091,000
- National Total Property marketing campaign with auction method of sale
- SOLD under the hammer for $3,800,000 + GST at a 4.07% yield
- 111 buyer registrations
- 5 active bidders in the auction room/ participating via phone
- Sold to a proactive local investor after a spirited battle with an Auckland-based under-bidder
The coastal town of Mount Maunganui in the Bay of Plenty is a popular holiday destination and, as a recent auction proved, a commercial property hot spot with investors across New Zealand and even offshore.
Brendon and Lynn Bradley of Bayleys Tauranga say whenever a property at “The Mount” comes to the market, their phones ring off the hook and there were plenty of potential buyers competing to own a CBD retail/office building in the town.
“The fact that we received 111 buyer registrations pre-auction shows just how sought-after Mount Maunganui is,” Lynn said.
“Demand always exceeds available supply at The Mount and as such, the prices attained outstrip those we see elsewhere in the Bay of Plenty.”
The vendors were two local business people that Brendon and Lynn have had multiple dealings with in a leasing capacity over many years.
“They’re valued, longstanding clients and we were delighted to get a great outcome for them on auction day,” says Brendon.
The eventual buyer was registered on Team Bradley’s client database and as such, had been kept in the loop about new properties as soon as they came to the market.
A Mount Maunganui-based investor adds another local property to his portfolio
The purchaser has lived in Mount Maunganui for 17 years and has multiple local business interests.
He’s consolidating a commercial property portfolio and this retail/office building resonated with him given the tenant mix and prime location.
“It’s a large site in central Mount with good parking and the risks are mitigated across six tenants,” says the local businessman.
“This is a low-yielding investment which I’m looking at holding long term.”
As a long-standing resident of Mount Maunganui, he is keen to invest in the local economy and see it grow.
“Being in the electrical and traffic industry, I believe it is critical that we keep money in the local economy and show our support for the area when and where we can.”
He says the process of buying the Maunganui Road property was very straightforward and he wasn’t even in the auction room.
“My broker attended the auction on our behalf,” he explains.
“Brendon was easy to deal with leading up to auction day and was really helpful in getting the last of the information through to help us with final settlement.”
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