Tyre tenant on ‘golden mile’

5:38 PM Friday June 8, 2018 True Commercial

The property at 111 Second Ave maximises its Tauranga city fringe location. Photo / Supplied

A high-profile commercial property for sale on a prominent corner site on Tauranga’s Golden Mile will attract add-value investors, developers and future owner-occupiers.

That’s the view of Colliers International agents, who are marketing 111 Second Ave for sale by auction at 11am on Thursday 28 June, at the Trinity Wharf Hotel on Dive Crescent, Tauranga, unless sold earlier.

Colliers’ Tauranga director Simon Clark, says the 915sq m property is superbly positioned at the corner of Second Ave and Tauranga’s main commercial strip, Cameron Rd.

“This is an outstanding opportunity for a broad range of buyers to acquire a foothold in Tauranga’s sought-after city fringe,” he says.

“The property is now under-rented, giving add-value investors the opportunity to grow their rental income in the short term.

“Future owner-occupiers will be attracted to the prominent position, generous car parking and excellent access to Tauranga’s main arterial routes.

Clark believes owner-occupiers and developers will be able to draw on solid holding income while they prepare to move or redevelop the site.

Substantial national tenant Bridgestone Tyres is signed to a three-year lease returning $81,500 in net annual rent.

A recent market rental assessment suggests the property could attract a significantly higher rental rate.

The lease includes two rights of renewal of three years each, with final lease expiry in August 2025.

Market rental reviews are due upon renewal, with the next assessment to take place in August 2019.

The property comprises 660sq m of versatile buildings on a 915sq m Commercial zoned site, with 11 marked and four unmarked car parks.

Access is via Cameron Rd or a rear service lane from Second Ave.

Built in 1967, the property is constructed of concrete foundations and floors, with external walls of concrete block, coloursteel and fibrelite.

It comprises a 377sq m workshop, 175sq m basement and 60sq m of office and reception.

Clark believes the property is positioned to capitalise on Tauranga’s growth.

“Being at the corner of Second Ave and Cameron places it on Tauranga’s main north-south arterial route,” he says.

“Located on the fringe of Tauranga’s bustling CBD, it is only a short drive from the city’s main highways and residential neighbourhoods.”

Clark says the city fringe area is home to a wide spread of businesses, from corporate banks and government departments to big-box retailers and popular cafes.

“New buildings have been constructed in the locality to house KPMG, ANZ Commercial and Rural, Tauranga City Council, Cooney Lees Morgan and the IRD.

“The Ministry of Education occupies an extensively refurbished building on the next corner of First Ave and Cameron, while a substantial new mixed-use development is planned for the nearby corner of Devonport Rd, First Ave and Elizabeth St.

“This new development will comprise two residential apartment towers and new retail premises for national brands Farmers, Whitcoulls, Pascoes and Bed Bath and Beyond.”

Clark says the property for sale will benefit greatly from this extensive development activity.

“With strong demand from occupiers, investors and developers, there’s no doubt the city fringe is heating up.

“Savvy buyers will want to seize this opportunity to acquire a versatile commercial offering in a highly sought-after location.”