A multi-tenanted commercial property housing a vacant motel in the heart of Nelson’s CBD is up for sale, offering a new owner the chance to reimagine and reinvigorate the building.
On offer is a 15/16 share in the approximately 364-square metre main-street site containing a high-profile building with four storeys plus rooftop. Positioned between Trafalgar Street and Montgomery Square, the building offers a mix of retail, office and accommodation spaces.
The vacant 15-room former Mid City Motel and a vacant third-floor office suite provide significant scope for a new owner to increase future rental, including options to renovate or reconfigure.
The property at 218 Trafalgar Street is expected to appeal to boutique or short-term accommodation operators, or investors looking for redevelopment upside in the city centre.
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Eight existing retail and office tenancies, anchored by global travel giant Flight Centre, generate a combined annual net rental income of $149,912 plus outgoings and GST.
Flight Centre Travel Group is recognized as one of the five largest travel agencies globally. The group has more than 2,000 leisure, corporate and wholesale businesses, 450 stores and 3,500 travel experts in 11 countries.
Flight Centre pays an annual net rent of $51,500 plus outgoings and GST for its 97-square metre ground-floor retail premises fronting Trafalgar Street. The current lease runs through to 2025 with a further four-year right of renewal.
The property at 218 Trafalgar Street, Nelson, is being marketed for sale by Paul Vining of Bayleys Nelson.
It is being offered by way of a deadline sale closing on Wednesday 17th May, unless the property is sold prior.
Vining said the mix of retail, office and accommodation tenancies would appeal to investors seeking a versatile property with multiple revenue streams.
“The vacant accommodation and office tenancies offer the prospect of significant rental uplift. The accommodation space vacated by the Mid City Motel also presents an ideal chance for refurbishment and reconfiguration, enabling this space to be occupied for a similar purpose or potentially transformed into an entirely new concept,” Vining said.
The approximately 1,242-square metre building contains more than 260-square metres of ground-floor retail tenancies which benefit from busy foot traffic and high-profile frontage to Trafalgar Street, Bank Lane and Montgomery Square.
“The three levels above are configured for office tenancies on the Trafalgar Street side, with the motel rooms making up the balance. The rooftop is occupied by the last motel unit plus manager’s accommodation, which could provide comfortable living quarters for those overseeing the property,” said Vining.
The rooftop area offers expansive views of the city centre, surrounding ranges and out across Tasman Bay.
A Detailed Seismic Assessment carried out in 2016 reports the building will achieve a rating of at least 80 percent of new building standard.
The property is well served with street and public parking, with Montgomery Square and nearby Buxton Square providing hundreds of car parks.
It sits within the Inner City–Centre zone under Nelson’s district plan, which is designed to support the central city as a commercial, cultural, tourist and recreational focal point. The zone is home to a concentration of mainly comparison shopping, services such as banks and offices, and a growing number of restaurants, cafes and entertainment activities.
- Article supplied by Bayleys
