In a rare opportunity, a hotel with vacant possession in a strategic central Wellington location has come on the market.
70 Tory St, Te Aro, features 89 apartments with a mix of studio, one-bedroom, two-bedroom and four penthouses, providing short- and long-term stay options.
In addition, three commercial units and carparks combine as a mixed-use opportunity that JLL sales and leasing director Jim Wana believes will appeal to owner-occupiers, investors and rent-to-own operators.
The property, with approximately 4760sqm of gross floor area, plus decks and balconies with views across Wellington, is for sale by expressions of interest.
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These will close at 4pm, Thursday 13 October unless the property is sold prior.
It is in a prominent location close to Te Papa, Courtenay Place, the waterfront and Takina, the nearly completed convention and exhibition centre.
Each unit is ready to be occupied and is fully furnished with whiteware, ovens, stoves, TVs and beds.
“The astute investor who secures this property ahead of the forecast uptick in hospitality in the coming months has the potential to capitalise on a burgeoning, refreshed tourism industry,” Wana says.
“A turnkey, mixed-use, vacant possession property in this location has undeniable potential, and is a sound addition to any commercial property portfolio,” says Wana.
The 80 per cent NBS rating gives 70 Tory St an A grade for seismic risk.
The three ground-floor commercial units of 77sq m, 93sq m, and 284sq m currently provide approximately $450,000 gross annually plus GST.
Units one and two are leased to services operators, and unit three has a pending lease to an international blue-chip tenant that includes 56 of the 101 parking bays on site.
“Further income can be generated as a hotel owner-operator, by an investor seeking an operator, or working to a hybrid residential model,” says Wana.
JLL hotels and hospitality director Nick Thompson believes the tourism and hospitality sectors are primed to bounce back strongly following the last two uncertain years.
“New Zealand’s hospitality sector is the jewel in our beautiful country’s crown, and domestic and international visitors are excited about the now-open borders that make coming to our major cities a realistic option once again,” says Thompson.
“Owning a strategically positioned mixed-use property right in the heart of the capital city is a rare opportunity for good reason. The pedestrian traffic and proximity to important landmarks and top hospitality establishments puts this hotel in a desirable position that the new owner can take advantage of.”
Wana says the property sits on a 700sq m freehold site in the middle of Wellington and the unit-titled parking bays, with 45 as vacant possession, add real value.
— Article supplied by JLL
