Two boutique retail units for sale at a landmark Mount Maunganui address offer buyers a rare entry-level stake in one of the country’s top beachfront hospitality and retail strips.
The duo of modern, well-presented Stratum in Freehold units form part of a six-shop retail offering at the base of Tower One of the Oceanside Resort and Twin Towers complex – a recently fully refurbished commercial and residential complex at the northern end of the Bay of Plenty resort.
Shop 1 is leased to Peak Supplements, Nutrition and Performance, a self-described one-stop shop for supplements and nutrition needs. Shop 6 is a long-established hospitality tenancy currently leased by the Daily Dose Café and Bar.
Both enjoy excellent corner profile in a pivotal location beside iconic Mauao/Mount Maunganui and opposite the Mount’s famous surf beach, and each comes with a dedicated secure basement car park and storage locker.
Shops 1 and 6, at 2 Marine Parade, Mount Maunganui, are being marketed for sale through family sales team Ryan, Lynn and Brendon Bradley of Bayleys Tauranga.
The properties will go under the hammer separately at auction on Wednesday 13 September, unless they are sold prior.
Peak Supplements, Nutrition and Performance occupies the approximately 66-square-metre Shop 1 on a current lease that runs through to 2024 with two further two-year rights of renewal. The property generates an annual net rental return of $30,000 plus all outgoings and GST, with market rent reviews due on lease renewal dates.
As well as allowing customers to stock up on supplements and nutritional products from leading brands, Peak Supplements, Nutrition and Performance offers ready-made protein shakes and coffee in store.
Shop 1 is positioned at the eastern end of the block. It offers an open-plan retail area with double pedestrian entry doors, full window display to the front and window display to part-way along the eastern wall.
Ryan Bradley said this unit offered a new owner the potential for strong rental growth in the immediate future. “The current rent is considered below market for this Mount Maunganui location and some significant upside is expected at the next renewal and market rent review in January 2024,” he said.
Shop 6 sits at the block’s western end, beside the main pedestrian entry to the apartments. It too comprises an open-plan retail space, and spans some 63 square metres. This unit features stacker sliding doors, full window glazing to the front wall and part of the western side wall.
Daily Dose Café & Bar serves a range of food and beverage options on the premises, from coffee and brunch to burgers and beers, complemented by stunning beachside views.
The lease generates a net rental income of $52,562 plus all outgoings and GST per annum. The current lease extends to 2025 with two further four-year rights of renewal. A CPI rent review is due in August 2024, followed by market reviews on renewal dates and, if rights of renewal are taken up, 2.5 percent increases in 2027 and 2031.
Both shops have access via a rear door to a common facilities area with individual ladies’ and men’s toilets and a tea bay.
Lynn Bradley said the units benefited from their position at the base of one of the Mount’s most prominent towers.
“Tower One is a landmark property. Along with the six ground-level shops, it contains 10 levels of apartments plus basement car parking.
“The property is situated on the corner of Marine Parade and Adams Avenue at the northern end of the Mount Maunganui peninsula.
“The immediate area is zoned High Density Residential by Tauranga City Council. This is home to multiple apartment blocks with surrounding businesses providing a diverse range of activities including retail, hospitality and visitor accommodation,” said Lynn Bradley.
Brendon Bradley said the shops for sale formed part of a high-profile hospitality and retail hub featuring some of the Mount’s most-loved eateries and bars.
“This area’s reputation as a world-class beachfront location means commercial property here is notoriously tightly held, with few opportunities to buy – particularly in more modest price brackets.
“Seldom do such affordable investments of this calibre become available in this stunning coastal location. These units must appeal to astute investors looking to acquire a quality commercial asset overlooking arguably one of the best beaches in the world,” Brendon Bradley said.