The Property

• 196sqm upmarket unit-titled office unit on the ground floor of Tauranga’s new Vantage mixed-use development

• Unrivalled profile to the street with floor to ceiling glass, and a sleek interior with high-quality fittings and fixtures

• Six car parks

• Occupied by WorkCo Limited, a division of award-winning architectural firm Wingates, as a coworking space

• Annual net rental of $100,985

• 6-year term with annual rental growth and renewals

• 100% NBS

Quick Look

• National Total Property marketing campaign – sold by auction

• Interest generated via Bayleys’ databases, nationwide Total Property magazine, plus print, web and social media campaigns

• Pre-auction offer was accepted by the vendor

• SOLD unconditionally for $1,680,000, showing a 6.01% yield

• Purchased by local iwi entity

The Story

Located at the corner of Cameron Road and Fourth Avenue, Tauranga, this commercial unit on the ground floor of a standout multi-level mixed-use development “ticked the quality box many times over”, according to Brendon Bradley of Bayleys who took the property through an auction campaign with Lynn and Ryan Bradley.

“The Vantage building has A-grade pedigree, and the market recognised the value of the professional workspace the generously-proportioned unit offered.

“It’s positioned in a strategic city fringe commercial zone in a flagship building offering retail and office at ground floor, residential apartment living above and basement carparking.

“The unit has cutting-edge design with strong architectural elements and provides premium coworking space for the occupier WorkCo Limited which has committed to the space with a strong lease covenant.”

Purchased by an iwi buyer that was looking for a quality property to add to a passive investment portfolio, Brendon says the accepted pre-auction offer representing a 6,01% yield was a favourable result in the current market.

“Considering where interest rates are, and with some residual uncertainty around New Zealand’s bigger economic picture, the market talked and the auction process was successful."

Vendor Comment

Mitch Mace, director for Black & Orange Property, says selling through Bayleys was a no-fuss and quick process for the vendors.

The decision to sell the subject unit in the Vantage development to release some capital was reluctantly made and Mitch says while it was not really an optimal time to be selling, they were hopeful and confident that the quality of this asset would show through in any market.

“Brendon and Lynn have been on the Vantage journey since the start and knew the product well so we trusted their ability to sell the unit,” he says.

“Communication throughout the marketing campaign was good and the selling process was handled professionally with little input required from us.”

While realistic about the current tough market, Mitch says they had a line in the sand of where they would be prepared to sell.

“Getting a pre-auction offer wasn’t necessarily a surprise because it is a quality property, but it was testament to the communication Brendon and Lynn had with prospective buyers.

“Sealing the deal in a market with decent expectation gaps between buyers and sellers is always tricky, yet this was done quickly without fuss.”