Bay of Plenty office investment opportunity
Two premium office buildings in the vibrant Bay of Plenty township of Katikati are for sale either individually or together.
Located just off the main highway, 13 Talisman Drive occupies a prominent 2,221sq m site directly opposite Katikati’s new public library and a substantial public car park.
The well-built, modern property is fully leased to a diverse mix of professional tenants, including two accountancy firms and two legal practices, as well as a busy downstairs cafe.
It comprises two buildings, constructed in 2006, with a combined net lettable area of 922sq m. Each building is divided into two strata titles, with four tenancies of varying sizes per building.
Colliers International’s Tauranga office is marketing the property for sale with a total asking price of $2.9 million. The buildings are affordably priced individually at $1.65m and $1.25m respectively.
Simon Clark, Managing Director of Colliers Tauranga, says it is a unique opportunity to purchase two modern standalone office buildings in a growing Western Bay of Plenty location.
“Located some 40km northwest of Tauranga, Katikati is a vibrant township that is well known for its colourful murals and idyllic coastal-pastoral setting.
“Several new areas of residential land have been opened up for development in recent years, attracting a growing population with quality new housing.
“These new residents are serviced by a busy main street that offers a great selection of shops, cafes, bars and restaurants.”
Clark says the property for sale is located on Talisman Drive, directly behind the main retail precinct, offering a more relaxed atmosphere for office accommodation.
“It has ample on-site parking and ideally sized tenancies that benefit from great natural light from windows on all sides.
“Modern buildings of this quality are rarely available in Katikati, with most being older premises. This will ensure the property remains attractive to tenants well into the future.”
Zoned for commercial use, the property is well-appointed with air-conditioning in both buildings.
Units 1 and 2 comprise the smaller building at the south of the site, which has a net lettable area of 412sq m. It is for sale with an asking price of $1.25m.
The building is tenanted by Katikati Chartered Accountants, which occupies two of the four tenancies, along with Tamihai Limited and law firm Forbes Hare.
The leases return $87,404 plus GST in net annual rent.
Units 3 and 4 comprise the larger building at the north of the site, which has a net lettable area of 509sq m. It is for sale with an asking price of $1.65m.
The building is tenanted by Viva Cafe, which provides a focal point for the complex, as well as Accumulus Accountants, Kaimai Law and Inline Drilling.
The leases return $114,965 plus GST in net annual rent.
Two tenants across the two buildings, Tamihai Limited and Inline Drilling, are on month-by-month tenancies at discounted rentals.
The vendor will agree to lease back these tenancies for two years at market rentals to give the new owners time to find suitable new long-term tenants.
The remaining tenancies are on terms of between two to four years, each with three or more rights of renewal of three years each.
Grant White, who is marketing the property with Clark, says Katikati acts as the gateway to the Bay of Plenty when travelling from the north.
“The township sits on the Uretara Stream, near a tidal inlet at the northern end of Tauranga Harbour. Visitors are treated to welcoming views of lush green pasture rolling down to the sea.
“State Highway 2 runs through the town, putting it only two hours from Auckland and Hamilton, and under half an hour from Tauranga and Mount Maunganui.”
White says Katikati is rapidly gaining popularity due to its relaxed atmosphere and lifestyle opportunities.
“Katikati’s population has grown three times faster than the national average since 1950, with estimates putting the current population at 4,530.
“The township also draws on a large population from the surrounding horticultural and farming areas that dot the coastal belt between the Kaimai Range and the Tauranga Harbour.
“Farming and orchards of kiwifruit, avocados, olives, and citrus have provided a sound economic base for the area.”
The township is well served by primary, intermediate and secondary schools.
A wide range of professional, social, commercial and recreational services and facilities are also provided. The hot springs at Sapphire Sprigs are located 3km to the south.
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