Three separate titles in business heart of Tauranga to be auctioned

The Devonport Rd buildings are in the heart of the CBD. Photo / Supplied

Prime commercial property in the heart of the Tauranga CBD held in three titles will be auctioned as separate lots by Bayleys on April 1 through Rob Pinny of Bayleys Tauranga.

The properties are at 71-73, 75-77 and 83-89 Devonport Rd and lie on the western side of the road, midway between Elizabeth St and Piccadilly Arcade.

Pinny says this is a high pedestrian traffic strip within the downtown area running from First Avenue down to The Strand.

"The properties are 100 per cent tenanted with varying lease terms and have remained fully tenanted right through the so-called downturn in the commercial property market.

"The annual combined rental of the three properties is $575,088, plus GST, so the holding income is significant and enhances the value of the sites as, while future development plans are pursued, the money is still coming in."

The location will be enhanced by a proposed new central city car park building planned on the council-owned lot behind the IRD building, adjacent to the neighbouring Devonport Tower Apartment Hotel Complex.

At 71-73 Devonport Rd, the property previously known as the Southern Cross Building is a two-level retail and office building with on-site tenant parking for 15 vehicles. On about 835sq m of land and originally constructed in the mid-1940s with subsequent additions in the 1950s and 1970s, the building has a 400sq m ground floor and 253sq m first floor.

There are 11 tenancies, including High Street Fashion Shop, Nest Homeware and Bella Mia Italian Pizzeria on the ground floor. Bay Bridal occupies half of the first floor.

Occupying 1176sq m of land, 75-77 Devonport Rd is in two lots but will be sold together. Number 75 comprises a single-level commercial building with a small mezzanine, while 77 is a two-level building. There are five tenancies between them, including the long-established Souer de Deux Cafe and the new office premises for the Ministry of Social Development. Lot One was built in 1954 but converted to A-grade office premises in 2008.

The single-level building at 83-89 Devonport Rd with a land area of 362sq m is of 1960s construction and is divided into three tenancies, including Brumby's Bakery and the Sunglass Hut.

Pinny says Devonport Rd is recognised as one of the key destination shopping locations in Tauranga and is a popular location for investors looking to secure central city properties. "Inquiry levels have been strong on commercial offerings so far this year. The Tauranga CBD is lacking a quality, modern redevelopment of retail shopping space. Given the location of the properties that we will be auctioning, plus the zoning allowing for unlimited height restrictions subject to regional airport authority compliance, this could be the opportunity that a perceptive investor has been waiting for.

"Once the commercial development lending fundamentals come back into line, these properties will really come into their own.

"Investors seem to be in good spirits and word has got out that these Devonport Road buildings will be auctioned, so we believe acquiring a stake in the CBD with future development possibilities is going to be hotly contested."