The smart premises housing two professional practices in a popular Tauranga city-fringe office area are up for sale, offering buyers an affordable split-risk investment.
The two-level standalone office building on Wharf Street is fully occupied by long established local practices Jigsaw Architects and Promech Consultants.
The site generates a total net rental return of $91,589 plus outgoings and GST per annum.
Jigsaw Architects specialises in architecture and project management, with an award-winning commitment to environmentally sustainable design. Its premises of some 200 square metres generate a net rental return of $56,757 plus outgoings and GST.
Promech Consultants provides a wide range of engineering and project management services. It uses high-tech 3D design modelling tools and software developed in-house to assist with all aspects of design.
The business pays an annual net rent of $34,832 plus outgoings and GST for its approximately 126-square-metre offices.
Both tenants have recently committed to new leases through to 2026 with two further three-year rights of renewal. The lease agreements provide for market rent reviews on renewal dates.
The freehold land and buildings at 103 Wharf Street, Tauranga, are being offered for sale through the family sales team of Brendon, Lynn and Ryan Bradley of Bayleys Tauranga.
The property will go under the hammer at an auction on Wednesday 25 October, unless it is sold prior.
Brendon Bradley said the approximately 326-square-metre building on some 270 square metres of freehold land was zoned as part of the City Centre under Tauranga’s city plan.
“This commercial site is strategically situated in a highly sought-after Tauranga city fringe office area and is poised to benefit from major redevelopment projects revitalising the city centre.
“With its two established professional services tenants, now on new leases, this site is a solid income earner that will appeal to commercial property investors seeking an affordable split-risk asset with future growth potential.
“City Centre zoning also provides significant potential for future redevelopment with buildings up to 19 metres high,” said Brendon Bradley.
Lynn Bradley said the standalone two-level property currently provided individual office tenancies on each floor, with the flexibility to combine these into one in the future.
“The property encompasses two adjoining buildings constructed in the 1960s and 1970s. Both have undergone internal alterations to suit tenants’ fitout and upgrade requirements over the years, with the most recent refurbishments to both floors carried out within the past five years,” she said.
The front and rear buildings have B-grade and C-grade Initial Evaluation Procedure seismic ratings respectively.
“The premises are extremely well presented with the office accommodation being predominantly open-plan administrative areas on both floors with each having their own staff amenities. The ground floor includes two partitioned meeting rooms to the front on either side of the entry foyer plus two internal staircases to the upper level which also includes a separate office to the rear,” Lynn Bradley said.
Ryan Bradley said location was key to much of the site’s investment appeal.
“The property is located in Wharf Street on the northwestern side of Cameron Road, a core transport corridor that runs the length of Tauranga city.
“This is a highly sought-after commercial precinct close to the city centre which is handy to the main arterial routes of Cameron Road, Devonport Road and the Tauranga expressway.
“It is well placed to reap the benefits of the renaissance underway in Tauranga’s CBD with multiple projects set to deliver a more vibrant and dynamic city centre. This includes the new major Farmers commercial/residential development with a number of national retailers now trading in this multi-level complex.
“Business expansion and demand for commercial real estate generally is fueled by Tauranga’s status as New Zealand’s fifth-largest city and one of its fastest growing areas. The city’s population of over 120,000 is projected to climb to over 140,000 by 2026,” Ryan Bradley said.