Tauranga CBD site has redevelopment potential
Tenants at 160-168 Devonport Rd, Tauranga, are Life Unlimited Charitable Trust, Tauranga Asia Supermarket and gym operator Beyond Fitness.
A large site, comprising 2019sq m of freehold land occupied by a single-storey building with three commercial tenancies, is for sale in Tauranga’s central business district (CBD).
Featured in Bayleys’ latest Total Property portfolio magazine, the property at 160-168 Devonport Rd, sits between First and Second Avenues, and generates a combined annual rental income of $138,500 plus GST.
Devonport Rd is the main arterial route linking Tauranga’s CBD with the city’s southwestern urban residential fringe. As well as facing directly into Devonport Rd, the block for sale has right of way access from both First and Second avenues.
Bayleys Tauranga salesperson, Lloyd Davidson, is marketing the property for sale by tenders closing at4pm on September 14, unless it sells earlier by negotiation
With a City Centre zoning, the property’s most likely future use is for a redeveloped mixed-use, low-level office and apartment block with retail outlets at street level, Davidson says.
He believes the site will most likely be purchased as development proposition, sustained in the short to medium-term as a fully-tenanted investment, while the necessary planning consents and approvals are acquired to deliver a new entity.
Individual tenants are:
- Life Unlimited Charitable Trust, one of Bay of Plenty’s biggest Government-affiliated health and disability charities. Occupying 385sq m of space in the main administrative and retail building facing onto Devonport Rd, Life Unlimited’s lease runs through to June next year with a further three-year right of renewal. The trust’s portion of the Devonport Rd property includes 18 car parks and the use of a 22sq m transportable office at the back of the property.
- Imported ethnic foods retailer Tauranga Asia Supermarket, renting about 571sq m of space on a lease running through to 2022 with the potential for rights of renewal. The supermarket business has four allocated car parks.
- Gym operator Beyond Fitness with 205sq m of space, on a lease running through to May next year and including three three-year rights of renewal. Beyond Fitness has two car parks for clients attending the business’s various free-weights, box-fit, Pilates and physiotherapy sessions.
Davidson says Tauranga Council’s City Centre zoning is designed to maintain and enhance the role and function of the central business district as a commercial, retail and civic hub.
“The zoning allows for the potential development of buildings through intensification up to a 16m height; permitting this location to sustain a mixed-use scenario with retail operations continuing on the streel level, and either commercial premises or residential dwellings on the upper floors.
“Under the development scenario, any apartments built on the eastern portion of this block will have unobstructed views of the inner-harbour, while occupants and tenants will have easy access to the heart of the city – a core theme of the city centre zoning.”
Davidson says the Devonport Rd property is the latest real estate venture in Tauranga with the potential for major redevelopment under the new council use format designed to address the changing demands of the city, its users, and residents.
Tauranga redevelopment projects announced over the past two years include:
- the $90m Waikato University campus in Durham St encompassing a 12,000sq m student hostel;
- two levels of new commercial office space and a street level array of new hospitality operations within the 4000sq m premises known as The Reserve in Harrington St – due for completion in the first quarter of 2018;
- three floors of new commercial office space and a number of street level restaurants and bars within the 950sq m Fifty One The Strand development - also due for completion in the first quarter of 2018; and
- the Westpac Building at 2 Devonport Rd, currently undergoing due diligence for a proposed $50m re-development, to including premium retail sites at ground level, office space through the middle floors and high-end apartments on the top floors.