A fully-tenanted commercial hub on a prominent corner site in Tauranga has come to the market for sale and is billed by agents as a clean, bottom-drawer passive investment opportunity offering proven returns.

The complex was developed in 2018 on a flat 3,623sqm site at 51-57 Fifteenth Avenue that formerly housed a hire centre business. It comprises five separate tenancies across a single level building with a total lettable area of 1,302.5sqm and 51 car parks. The building is at 100 percent A-grade new building standard and the freehold property is zoned Commercial.

The tenants are medical practice Healthcare on Fifteenth, Unichem Fifteenth Avenue Pharmacy, government agency Te Puni Kōkiri, imaging and printing firm Canon Bay of Plenty, and building company Stonewood Homes.

Each tenancy is reasonably generic with predominantly tenant-owned fitout, and Canon’s premises include a high-stud storeroom/warehouse with dedicated roller door access to the rear.

A number of the current businesses were foundation tenants in the precinct, which is known as Fifteenth Business Corner, The property returns annual net income of $430,810 plus GST and outgoings with occupiers on varying lease terms, some with personal guarantees, and three of the leases have allocated carparking.

Located at the eastern end of Fifteenth Avenue, on the northern side of a traffic light-controlled intersection, the property has around 90 metres frontage to the avenue, and dual access from Burrows Street. The building has a good level of glazing to optimise profile to one of Tauranga’s busiest arterials, with high passing traffic counts boosting commercial activity in the area.

Marketed by Brendon, Lynn, and Ryan Bradley of Bayleys Tauranga, the property is being sold via a deadline private treaty campaign closing Thursday, 26th June, unless sold prior.

With 47 percent of the modern, low-maintenance building leased to medical-aligned tenants, Brendon Bradley says the property’s credentials stack up nicely for astute investors looking for a favourable long-term hold.

“Healthcare is a defensive sector given its provision of essential services, and around the country we’re seeing neighbourhood commercial precincts evolving to become one-stop destinations for health-related services.

“While the current mix of tenants at Fifteenth Business Corner spanning medical, ministry and national tenants is working well, a new owner could look to target other complementary health providers as leases roll over to create a functional and convenient precinct to service the significant residential catchment around the avenues.”

Bradley says the Tauranga commercial market is seeing good activity from investors and picks that with after-tax real returns heading downwards for money in the bank, investor interest could flourish for well-located, well-performing modern commercial assets such as this.

“The subject property is in a thriving location close to the city centre, and any commercial property we bring to the market in this general area sells well.

“Fifteenth Avenue forms part of State Highway 2A and is a feeder road to the city centre for traffic from Maungatapu, Welcome Bay and Ohauti and surrounds, as well as being a cross-city link to Bethlehem and Te Puna. The high daily traffic counts are good for business and it’s a sought-after city-fringe commercial area typified by workshop and warehouse buildings, retail and trade tenancies, and motel accommodation.”