Mt Maunganui car sales investment property
The property at 120 Hewletts Rd, Mt Maunganui, features a vehicle showroom and connected workshop. Photo / Supplied
Land and buildings housing Tauranga's biggest distributor of multiple car brands have been placed on the market.
Situated on the corner of Hosking St and Hewletts Rd in Mount Maunganui, the property encompasses an open-plan vehicle showroom of 509sq m and an adjacent connected workshop of 288sq m occupying 1525sq m of freehold land.
The property at 120 Hewletts Rd is featured in Bayleys’ latest Total Property portfolio magazine and is being marketed for sale by tender through Jim Mckinlay of Bayleys Tauranga, with tenders closing at 4pm on Wednesday May 15.
Hewletts Rd doubles as State Highway 2 and is the main high traffic volume arterial route linking Tauranga and the Eastern Bay of Plenty through Mount Maunganui.
Mckinlay says the single-level premises was constructed in 1990 of concrete floor plates, a mix of concrete block and textured fibre concrete tilt-slab walls, supporting steel portals and timber framing with a galvanised iron roof.
Eight years ago the property was upgraded into a showroom and workshop equipped with air-conditioning; partitioned office space, a kitchen and other amenities.
The tenant, Farmer Motors pays annual rent of $166,130, with two-yearly rent reviews linked to comparative market rates. The lease commenced in 2011 and was renewed for four years in 2015. It has two further four-year rights of renewal, the next being in September 2019.
The site is well-suited to its automotive display and sales purpose. Photo / Supplied
“While it is expected that the lease will be renewed through to the final expiry in 2027, if the site did become vacant it would be highly sought after due to its premier location,” Mckinlay says.
“With the next rent review due in September, recent leasing agreements on similar properties in the surrounding vicinity suggest a rent increase is likely for 120 Hewletts Rd.”
Mckinlay says the property has been offered to tenant Farmer Motors to purchase and is well-suited to its existing automotive showroom purpose.
Farmer Autovillage has been at its flagship Hewletts Rd site - which neighbours the property being sold - for nearly a decade, selling and distributing prestige brands including Audi, Nissan, Volkswagen, Skoda, Subaru, Jeep, and Hyundai.
However, the offer price has been declined by Farmer Motors and the property is now being offered for sale to the public by tender.
Mckinlay says that any tender offers at prices higher than the amount previously declined by Farmer Motors could be accepted by the vendor without the offer having to be referred to Farmer Motors.
In the immediate area there is a mix of commercial, service, offices, small workshops and port related businesses along with both small and large retail outlets.
Mckinlay says that with an extensive frontage onto Hewletts Rd, the property and – and its tenant – benefit from a high-profile corner location which is easily accessible by customers.