Built in the late 1880s as the Panama Hotel and operating as a popular watering-hole until the mid-1970s, the two-storey character Panama House building in the Nelson CBD is for sale.
Fully leased and home to Thai-Vietnamese eatery Mama San on the ground floor and an office occupier on the upper level, the refurbished Panama House sits on a prime freehold 270sqm Inner City Centre-zoned site within Nelson’s dining precinct where many of the city’s favoured cafes and restaurants can be found.
The building has a total floor area of 410sqm and underwent a series of renovations through the 1970s-2007.
When the current owners purchased the property in 2014, seismic and fire upgrades were carried out and the building is now assessed at 100-per cent new building standard.
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The property generates a net income of $80,000 per annum plus GST and outgoings.
The vendors ran their own restaurant on the ground floor before selling that business in 2017 and retained the building as an investment.
Now wishing to retire and release some capital, Panama House is for sale as a fully tenanted investment opportunity through Gill Ireland and Kaitlyn Turner of Bayleys Nelson via a deadline sale campaign closing 20th August, unless sold prior.
Ireland says Nelson is attracting significant investor interest from outside the region for the value it offers and the potential upside that much of the commercial stock offers.
“Nelson is the Tauranga of the South, with enviable lifestyle and recreational credentials underscored by a strong regional economy.
“We’re seeing buyers for existing Nelson commercial property stock coming from Auckland, Wellington and Queenstown, and developers are once again on the hunt for land after a few somewhat subdued years for the new construction sector.
“Panama House provides a bottom-drawer opportunity for pure investors, potential for part owner-occupation once current leases expire, or a redevelopment project by way of an apartment conversion on the upper level, with due process undertaken.”
Nelson City Council is encouraging inner-city living above ground floor commercial premises.
Ireland says Panama House has the advantage of some great character features, a separate entrance at street level and a generous balcony which is currently enjoyed by the office tenant, but could equally add to the desirability of a residential conversion.
“While the current tenants in the property are settled and have leases with rights of renewal, a new owner will recognise the multi-faceted advantages that could be unlocked in the future.”
The busy high-profile intersection gives the building dual profile and exposure to passing foot and vehicular traffic which has served the hospitality occupiers well over the years.
Popular Mama San restaurant also has outlets in Christchurch and Invercargill and its Nelson premises are vibrant and welcoming with a unique fitout.
“The landlord has retained ownership of the extraction hood, chiller room and beer chiller display cabinet to future-proof the ground floor hospitality tenancy, improving its appeal to restaurant operators,” explains Ireland.
“The first floor tenancy comprises reception area, boardroom, five offices, storeroom, kitchenette, break room and balcony, and many of the building’s character features have been retained including colonial double-hung windows, decorative balustrade and leadlight ‘Panama House’ window.
“The building has been maintained to a really high standard, making it an attractive proposition for investors seeking a secure asset in a prime location.”
- Supplied by Bayleys
