Tauranga motel with room for expansion

A Tauranga motel popular with business and leisure travellers on a site with new possibilities for residential intensification has gone up for sale.

The well-established 17-unit Cottage Park Thermal Motel sits a few minutes south of the city centre, in Hairini, with over 50 metres of high-profile street frontage.

Now on the market as a freehold going concern, the motel has excellent guest facilities, a comfortable manager’s residence and multiple revenue streams from holidaymakers, visiting businesspeople and semi-permanent residents of four stand-alone units.

The large underlying freehold site of nearly 4,000 square metres offers room to add buildings or to completely redevelop taking advantage of recently intensified residential zoning in the fast-growing city.

After 30 years under its current ownership, the land, buildings and business underpinning Cottage Park Thermal Motel, located at 19 Hairini Street, Tauranga, are being offered for sale.

The freehold going concern will be sold by way of negotiation through James Ross of Bayleys Tauranga.

The approximately 1,320 square metres of buildings sit on an attractively landscaped site of some 3,972 square metres.

“This freehold going concern motel on a strategically located, generous elevated site will appeal to owner-operators, investors or developers,” Ross said.

“On offer is a ‘turn-key’ operation ready for new owners or operators to take over with all systems and fixtures and fittings included.”

The 17 well-appointed units are a mix of spacious studios, one, two and three bedroomed units, most with underfloor heating and private thermal plunge pools.

The two-storeyed two-bedroom units offer attractive views over Tauranga Harbour.

Amenities for guests include a thermally heated swimming pool and barbecue area, a games room, guest laundry facilities and plenty of on-site parking.

In a separate part of the property, four freestanding units with their own laundry are rented out on a semi-permanent basis.

The large well-presented two-storey manager’s residence also has appealing harbour views. This offers three bedrooms and two bathrooms upstairs. Downstairs is a double garage, reception, lunchroom, toilet, laundry and storeroom.

Ross said recent rezoning to Medium Density Residential under Tauranga’s district plan unlocked new possibilities.

“This allows for buildings of up to three storeys and greater intensification of dwellings on this central, elevated site.

“Any future expansion or redevelopment would be supported by the property’ standout street profile and strategic location in the heart of one of New Zealand’s fastest-growing cities.

“This location just off State Highway 29 is a short drive from Tauranga’s CBD, Mount Maunganui, Tauriko Business Estate and the major retail centres of Bayfair and the Crossing – that’s why the motel appeals to both business and leisure travellers.

“Just next door is a medical centre, a dental practice and a hair salon. Also within walking distance is Maungatapu Shopping Centre, which includes a superette, café, takeaways and a bar,” Ross said.

Details of business financial performance are available to potential buyers subject to signing a non-disclosure agreement.

- Supplied by Bayleys