Investors eye bottom line at Tauranga accountancy premises

A multi-tenanted freehold property anchored by a well-known Bay of Plenty accountancy practice has been put on the market for sale.

The standalone two-storey building at 127 Second Avenue, Tauranga, sits on a strategic commercial-zoned site on the fringe of the city’s central business district.

Around two thirds of the building is leased to Legacy Accountants, whose team of 24 accountants and support staff provides a wide range of business services through its Tauranga office and another branch in Whakatane. Other tenancies are occupied by a mortgage broker, vehicle wrapping and signage provider.

The three established tenancies generate a total net rental income of $122,500 plus outgoings and GST per annum.

The Second Avenue property is now being marketed for sale way of an auction at 1pm on Wednesday 15 September 2021 (unless sold prior) through Bayleys Tauranga.

Salespeople Rory Brown and James Ross said the site consists of circa a 472 square metre building on approximately 627 square metres of land, with six parking spaces to the rear.

“Constructed with concrete and concrete block foundations in 1967, then primarily concrete block exterior walls, the structure has been considerably upgraded with a high-quality fitout to accommodate multiple tenants,” said Mr Brown.

“The building was seismically strengthened in 2017 to 70 percent of the new building standard.”

Some 242 square metres on the ground floor is leased to Legacy Accountants Limited. Served by front and rear access, this tenancy features a reception area, meeting rooms, open-plan mezzanine offices, staffroom and storage plus amenities, along with a small rear courtyard.

Legacy Accountants pays a net annual rent of $80,000 on a lease that runs through to 2026, with three further two-year rights of renewal and market rent reviews every second year.

Something Solutions Limited, trading as The Wrap Dept, occupies approximately 165 square metres of ground-floor space encompassing a reception/retail area, office, staffroom, storerooms, kitchenette and amenities.

This tenancy also has front and rear access with a roller door to a warehouse at the rear. It generates a net rental of $27,500 per annum. The current lease extends to 2022 with two further two-year rights of renewal and market rent reviews at each lease renewal.

Some 65 square metres on the first floor, with office, reception, staffroom, kitchenette and amenities, is leased by Majesty Mortgage Brokers Tauranga. It pays $15,000 per annum on a lease running through to 2024, with a further one-year right of renewal and a market rent review at lease renewal.

“All tenancies have skylights and windows providing plenty of natural light,” said Mr Brown.

Mr Ross said the property for sale was strategically positioned on the western side of Second Avenue, close to major arterial routes and a short distance from the city centre.

“Nearby Elizabeth Street offers quick access to State Highway 2 at Takitimu Drive, opening up easy connections in and out of Tauranga and towards Mount Maunganui, the Port of Tauranga and Tauranga Airport.

“Less than 100 metres away, busy Cameron Road has attracted high-profile international fast-food chains and car dealerships. It is also a prominent location for local and national retailers, service providers and other businesses thriving on huge exposure,” Mr Ross said.

“Businesses in the area are also supported by the Elizabeth Street Parking Building. This is about 450 metres from the site for sale, while Tauranga’s main bus stop on Wharf Street is a 10-minute walk away.”

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