A well-known backpacker accommodation lodge on the edge of Auckland’s central business district is being offered for sale as a freehold going concern.
Trading as Grafton Backpackers, the extensively refurbished and upgraded hostel sits on a prominent site at the boundary of Grafton and Eden Terrace, with expansive views over the central city and Hauraki Gulf.
With 30 rooms and a license for 120 occupants, it is an established and successful business attracting backpackers, students, and longer-term tenants, which is poised to gain further from the reopening of New Zealand’s borders.
The property at 6 Glenside Crescent, Grafton, Auckland, is being marketed for sale by Alan Haydock and Damien Bullick of Bayleys Auckland Central.
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Sale is by way of deadline private treaty closing on Tuesday 10 May unless it is sold prior.
Haydock said the property for sale consisted of a well-presented four-storey building on an approximately 401 square metre fee simple site.
The property underpins a proven backpacker business which is being offered as a going concern.
“The upper three levels house 30 private and shared bedrooms in various sizes and configurations, along with bathroom, laundry, and shared kitchen/dining room facilities.
“On the ground floor is a popular bar/common area frequented by guests at the backpackers, while a mezzanine level contains a large common area plus a reception/office. Also on ground level, is a tenancy of some 300 square metres currently used for car parking, workshop, storage, and office accommodation.
“No expense has been spared by the existing owner in renovating and upgrading the building, which has an Initial Evaluation Procedure seismic rating of 150 percent of new building standard,” said Haydock.
Bullick said a new owner would have numerous potential add-value options, such as increasing the number of beds, renting the ground-floor tenancy, or generating signage income.
“The building supports two high-profile signage boards, one of which is currently used to advertise the accommodation business. The second which is currently rented to an external advertiser,” he said.
Bullick said the Glenside Crescent offering would present a buyer with the chance to take advantage of the borders opening to maximise the existing accommodation business, or perhaps to pivot towards boarding house accommodation, or tailor the property for an alternative use.
The site’s flexible Business – Mixed Use zoning under Auckland’s unitary plan provides for residential accommodation, plus smaller-scale commercial uses including offices, retail, food and beverage, and healthcare.
The property benefits from an allowable building height of up to 21 metres, three metres higher than usually allowed in the zone.
Bullick said one of the property’s most desirable attributes was its high-profile and convenient north-facing location with extensive views.
“The surroundings are home to a good mix of cafes, restaurants, offices, and shops as well as a growing number of successful apartment developments, including the recently completed SKHY complex.
“Glenside Crescent is handy to the central city, and popular entertainment and retail precincts such as the Karangahape Road strip, plus Newmarket, Mt Eden, and Kingsland.
“Several key city amenities are within an easy walk. These include the Symonds Street campuses of Auckland University and AUT and Auckland University’s Medical School as well as Auckland Hospital and Auckland Domain,” said Bullick.
- Article supplied by Bayleys
