An investment property at the heart of Tauranga’s waterfront hospitality district and a CBD fringe redevelopment opportunity will go under the hammer next month.
Rachel Emerson of Colliers International Tauranga says the auctions will give investors and developers a chance to get a head start in 2020.
“Tauranga’s property market is in excellent shape, with yields continuing to sharpen and investor confidence outpacing all other regions of the North Island.
“With 2020 shaping up to be another outstanding year, the auctions next month represent a superb opportunity to get in on the action.
“The hospitality investment for sale is part of a modern mixed-use development at 59 The Strand, at the heart of Tauranga’s popular waterfront eating and entertainment district.
“Unit 3 of this striking architecturally designed building is occupied by a boutique gin and cocktail bar that has recently invested in a lively new fit out.
“The premises are complemented by an all-weather courtyard with feature fireplace, a covered walkway, and additional outdoor seating overflowing on to Masonic Park.
“The second property for auction is a CBD fringe property zoned for intensive residential redevelopment, making it an ideal opportunity to capitalise on Tauranga’s strong growth.
“The property at 37 Monmouth Street is for sale with vacant possession, allowing a developer to unlock the site’s potential right away.
“A new owner could also secure short to medium term income by renting the existing character bungalow to an office user, allowing time to plan future options for the site.
“Whether you’re looking for an exciting new project or a dependable passive investment, these two auctions shouldn’t be missed.”
Both properties will be auctioned from 11am on Thursday 20 February, unless one or both are sold earlier.
Unit 3, 59 The Strand is being marketed for sale by Rachel Emerson with Duncan Woodhouse of Colliers Tauranga.
Woodhouse says the high-quality property is part of a two-level, mixed-use development designed by Noel Jessop Architecture and completed in 2013.
“The striking design was a refreshing addition to Tauranga’s landscape, with a strong focus on architectural appeal, and remains one of the most eye-catching buildings in the CBD.
“Other occupiers in the unit-titled building include Phoenix Bar, Macau Restaurant and two first-floor office tenancies.
“The property is superbly situated on The Strand, which is firmly established as Tauranga’s food and beverage heart, and surrounded by a thriving mix of cafes, restaurants and offices.
“The proposed Civic Building project is on the property’s doorstep and a new public car park is under construction on nearby Hamilton Street, ensuring the property benefits from its strategic location into the future. “
Unit 3 has an internal floor area of 104sq m and a courtyard of 107sq m. An exclusive car park area is accessed off Hamilton Street which also houses back of house rubbish areas.
The overflow seating in Masonic Park operates under a Tauranga City Council licence to tenant Gee Hospitality Limited, trading as Miss Gee’s.
Miss Gee's is Tauranga’s newest speciality cocktail bar with a colourful selection of tap and craft beers, local and international wines, botanical gins and a fancy cocktail list, along with an eclectic menu including sharing plates.
The tenant is on a new three-year lease returning some $63,685 in net annual rental income, with two rights of renewal of five years each.
Market rental reviews are every two years from October 2021, with final expiry in September 2032.
The redevelopment property at 37 Monmouth Street is being marketed for sale by Rachel Emerson with colleague Grant White. It comprises a 209sq m building on a 581sq m landholding.
“Located on the CBD fringe, close to Cameron Road and the city centre, the property offers very easy access to the harbour bridge crossing to Mount Maunganui,” says White.
“City Living Mixed Use zoning allows for intensive residential redevelopment of up to 13m in height.
“Alternatively, a new owner could apply for consent for a mixed-use or commercial development on the site.”
White says Tauranga’s growth ensures it is an ideal location for residential development.
“Tauranga's population is projected to exceed 147,600 by 2024. It already has 2.7 per cent of New Zealand's population and is ranked New Zealand's sixth largest district by population.”