A prominent motel complex in Ōtāhuhu is on the market, offering a rare opportunity for investors to acquire a freehold going concern with considerable scope for future development.
Bayleys Auckland Metro Markets associate director Damien Bullick is marketing the 540 Motel on a 3,667sqm (more or less) site at 540 Great South Road alongside colleagues Alan Haydock, Wayne Keene and Phil Haydock.
The property features in Bayleys’ latest Total Property portfolio and is offered for sale by tender, closing at 4:00 pm on Tuesday, 29th October 2024 (unless sold prior).
Bullick says the well-maintained complex provides multiple pathways for purchasers, including running the existing business as a turn-key investment in a high-growth area or pursuing redevelopment options to maximise the site’s potential.
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“Occupying a high-profile position at the intersection with Nixon Avenue and triple street profile to Alexander Street, the property’s Business – Mixed Use zoning opens up opportunities beyond accommodation, with the potential for future residential development or redevelopment into a larger commercial enterprise.
“A previous resource consent has been granted for a 64-room hotel expansion, providing an immediate option to add value, while the zoning categorisation is favourable to development, allowing for a building height of up to four storeys - meaning the site is ideally positioned for an intensive housing development.”
The 38-room complex, totalling 656sqm (more or less), has been extensively refurbished, including a range of studio, one-bedroom, family, and spa suites.
Each room has a kitchenette, and the property features communal laundry facilities and ample on-site car parking. A two-bedroom manager’s residence adjoins the motel’s reception.
Bayleys Hotels, Tourism and Leisure national director Wayne Keene says investor appetite for commercial hotel assets has remained resilient throughout 2024. However, finding the stock to purchase has been a challenge.
“New Zealand still has a shortage of quality motel rooms, and we are unlikely to see new motel stock developed in the short-to-medium term, given pressures on land supply and development costs.
“The property’s zoning under the Auckland Unitary Plan allows for a mix of residential and commercial uses, providing flexibility for future owners to explore alternative uses for the site.
“Whether continuing to operate the motel or redeveloping the property as a mixed-use residential complex, favourable zoning and prime location create a unique opportunity to capitalise on the growing demand for housing and accommodation in New Zealand’s largest city,” he says.
Positioned on the main arterial of Great South Road in Central Ōtāhuhu, the subject property is surrounded by a combination of commercial and industrial businesses, supported by a growing residential catchment.
Bayleys Auckland Metro Markets senior director Alan Haydock says that Ōtāhuhu’s connectivity, both in terms of road and rail, is a significant drawcard for investment activity in the area.
“Ōtāhuhu is well-positioned within Auckland’s southern transport network, offering excellent access to public transport systems and arterial routes. The surrounding area has become a key growth corridor, with industrial and residential development occurring across growing precincts at Middlemore, the Auckland Airport, Sylvia Park and Mount Wellington.
“Investors looking for a versatile property with development potential are expected to take a keen interest in this well-located asset, which offers immediate income streams and the ability to unlock further value through redevelopment,” he says.
- Supplied by Bayleys
