A character commercial property in the tightly held Queenstown CBD that houses multiple well-known local hospitality businesses and a retail tenancy is being offered to the market for sale.
Located at 15-19 Ballarat Street, the property has approximately 641sq m of net lettable area across four buildings, one of which is the historic Eureka House. The landholding is held in two separate titles and spans approximately 591sq m.
The property has dual street frontages with open pedestrian access between Ballarat and Searle Streets linking the retail and hospitality precincts.
Fully leased to six tenants on long-term leases, the tenants include established operators Crew Room and Captains Restaurant in Eureka House, alongside the well-known bars of Bardeaux, Habana, and Birdy.
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The total annual rental income from the property is $661,950 plus GST and operating expenses.
Eureka House is one of the oldest surviving buildings in downtown Queenstown and has recently undergone seismic works to bring the NBS rating of the building to approximately 70 per cent.
The property is zoned in the heritage precinct of the Queenstown Town Centre Zone and there are redevelopment options for the future owner to explore. While Eureka House is a heritage building (QLDC category 3 protected feature i.e. facade of the building), the balance of the property does not form part of the heritage protected features.
Colliers Queenstown Brokers Rory O'Donnell, Mary-Jo Hudson, and Mark Simpson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 27 August, unless sold prior.
The central location of the subject property means it is also surrounded by national and international retail brands and benefits from high numbers of foot traffic. Ballarat Street, between Camp Street and Rees Street, is known as The Mall and forms part of the prime retail area of the CBD.
O'Donnell, Commercial Broker at Colliers Queenstown, says the prominently positioned property offers buyers the opportunity to acquire an asset with a steady rental stream.
The investment is underpinned by multiple longstanding hospitality operators who are on long-term leases, O'Donnell says.
The lease agreements provide a mixture of annual, market, and CPI rental reviews providing built-in income growth for the new owner.
Hudson, Commercial Broker at Colliers Queenstown, says demand for town centre retail space remains strong.
As a result, rents have remained firm, and we have seen a rise in retail rents in recent years despite flat economic performance. With the return of tourism growth in Queenstown, established hospitality businesses are performing strongly as the recovery from the Covid era continues, Hudson says.
Property in central Queenstown is incredibly tightly held and there have been no recent freehold sales in the prime CBD area during the past 12 months. Assets in Queenstown have long held appeal for buyers given their proven capital growth over time.
Simpson, Director at Colliers Queenstown, says buyers with a long-term view may have development plans in mind given its considerable potential.
There is scope to reposition the property and intensify the usage of the site, meaning the new owner could unlock its land value further, Simpson says. Assets of this nature are rarely available for purchase in Queenstown.
- Supplied by Colliers
