Street level view of properties for sale at 1 & 19 Devonport Rd, Tauranga.
Street level view of properties for sale at 1 & 19 Devonport Rd, Tauranga.
Two Tauranga CBD properties are for sale that promise the prospective purchaser an excellent holding income while considering future developments options for the site.
"It is rare indeed for such a well located and substantial slice of Tauranga's CBD to be offered for sale," says Denis McMahon of Ray White Commercial Tauranga, who with colleague Rob Pinny, is selling 1 and 19 Devonport Rd, for sale deadline private treaty closing on Thursday July 9.
"Given the region's consistent population and economic growth these buildings will appeal to a wide range of astute investors," McMahon says.
Denis McMahon of Ray White Commercial Tauranga
The offer encompasses two separate properties under one ownership in the heart of Tauranga's CBD with 1 Devonport Rd known locally as the Mid City building and 19 Devonport Rd known as the Davies building.
The buildings together comprise a total area of 2817 sq m with the Mid City building accounting for 2177 sq m of space and the Davies building 640 sq m of building area.
Both are on freehold title and occupy a land area of 1797 sq m with Mid City at 1339 sq m and the Davies building at 458 sq m.
McMahon says Mid City building was built in 1985 and was owned for a time by Robt Jones Investments Ltd. It carries an A-grade seismic rating with eight retail tenancies on the ground floor including Strand Bags, AMI Insurance and Pascoes. The first floor contains 11 office tenancies along with a vacant area that the current owners were planning to upgrade to include a ramp up to the level which would create 13 new car parks.
"An engineering report has been prepared for this and a purchaser could complete these works should they see fit," McMahon says.
Aerial view of Tauranga waterfront commercial area with properties for sale identified by a red border.
Pinny says the Davies building is an older building and needs some seismic work that an engineer's report shows as costing around $60,000. It has two occupied tenancies on the ground floor and one tenancy upstairs that is subject to lease negotiation.
"The properties generate a significant holding income with an annual rental of $886,506 plus GST," Pinny says.
Both buildings are zoned City Centre Business which allows for mixed use development including residential, retail and office activities.
Rob Pinny of Ray White Commercial Tauranga.
"The district plan allows for a maximum dwelling ratio of one dwelling per 50 sq m of land area with a maximum building height of 49 metres subject to sunlight admission to the Mid City Mall," Pinny says.
"This zoning presents a purchaser with the possibility for longer term redevelopment of the site to incorporate a residential component. This is exactly the type of development which the Tauranga City Council is advocating for in its Smart Growth strategy of 'Live Work and Play'".
Pinny says the location of the two properties in the heart of the CBD is another major attraction for a prospective buyer due to the city centre seeing a revival through new developments like a Trustpower property being built in Durham St, a proposed new university campus - also in Durham Street - and a planned new hotel close to the two properties that are for sale.
