Spring in Tauranga’s property step
45 Spring Street, Tauranga
- Well-presented 478m² single-level commercial property
- Offering five retail tenancies – one with a mezzanine
- High-profile 446m² freehold City Centre-zoned site
- Fully-leased with annual net rental of $166,524 + GST and outgoings
- A-grade NBS seismic rating
- CV: $2,360,000
- National Total Property marketing campaign with auction sale method
- More than 100 registrations of interest
- Strong bidding on the day with multiple bidders
- SOLD under the hammer for $3,550,000 at a 4.69% yield
- Purchased by a Wellington-based investor
With many initiatives underway to transform and further improve the Tauranga CBD, this strategically-located property in a busy retail strip struck a chord with motivated investors looking to capitalise on the city’s growth.
Brendon and Lynn Bradley of Bayleys Tauranga marketed the Spring Street property on behalf of their colleague, Lloyd Davidson, and say the highly sought-after investment location and the quality of the building fuelled enquiry levels.
“The original title for this property was issued in 1938 so it’s an enduring part of Tauranga’s retail history,” says Brendon.
“Tauranga CBD is being revitalised with significant commercial investment and improved civic amenities.
“The Spring Street property’s zoning allows for multi-level redevelopment up to 49 metres so there’s future inherent value for the new owner to explore down the track.”
The property fronts on to the busy Grey Street intersection and is handy to The Strand and Tauranga City Council's new waterfront precinct.
“With a split-risk mix of tenants, including two national retailers, the property is a solid income earner with a strong cashflow,” says Brendon.
“After a busy and high-profile marketing campaign, we ended up with happy vendors and a satisfied purchaser on auction day.”
Vendor Lloyd Davidson, now a commercial sales agent with Bayleys, says selling the family-owned property brings a proud 70-year chapter to a close.
The Davidson family bought the Spring Street property in the late-1940s, converting the original bakery into “A & A Davidsons” – a department-styled retail store selling fashion, fabrics, millinery and cosmetics — and creating two further retail tenancies in the building.
The property was later configured into five retail tenancies by second-generation family retailer Lloyd who, with his wife Maree, continued to operate a well-respected high-end fashion store, “Davidsons” which closed last year.
Lloyd says given the strategic location of the property, auction was deemed the best way to optimise its value and he believes the new owner will be able to further leverage off the evolving dynamics of Tauranga’s CBD.
“My parents – Alan and Fay Davidson – made an astute business decision in buying the property and recognising its potential as retail premises,” says Lloyd.
“The auction campaign ran as we’d hoped with plenty of buyer interest and robust competition in the room on auction day.
“While our expectations on price were certainly met – if not exceeded – I believe the new owner has made a smart purchase as the leases can be restructured over time and the zoning of the property allows for future multi-level redevelopment.
“It will be interesting to see how the property evolves, as Tauranga’s CBD continues to thrive.”
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