- A landmark boarding house in Wellington, formerly the Rosemere backpackers, is for sale.
- The 24-bedroom property generates $225,000 annually but is earthquake-prone, needing upgrades within five years.
- The building offers a rare investment opportunity with a tender date of March 11 and an RV of $1.4m.
A landmark blue and yellow boarding house, formerly the Rosemere backpackers and once a hostel for country girls coming to the city, is up for grabs in Wellington.
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Bayleys listing agent Mark Walker said the building at 6 Macdonald Crescent, Te Aro, was a bit of an ugly duckling, but profitable.
“It’s an ex-backpackers’ that’s been turned into a boarding house. It needs a bit of TLC, but it does generate a lot of income because it’s fully leased.”
The murals in the courtyard date back to the days when the place was the Rosemere backpackers, which closed five years ago. Photo / Supplied
Agents are clear that the property is an ugly duckling, but a profitable one. Work has begun on renovations. Photo / Supplied
The buyer would need to do their due diligence as the building had been identified as earthquake-prone, with a deadline to fix five years away, said Walker.
“It is 25% of code now, and they’ve only got to lift it to 34% of code.”
The 24-bedroom property has a tender date of March 11 and an RV of $1.4m.
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Photos show a courtyard with murals of Jimmy Hendrix, Bob Marley and Jim Morrison on a wall, presumably from the building’s backpacker days, but OneRoof understands the building started out as a YWCA hostel for young women.
An entry from Papers Past from 1915 says: “Young girls arriving in this city from the country districts to find employment in the shops and offices need suitable, inexpensive accommodation, where they may find friends and home-like surroundings.”
The YWCA had room for 28 young women at 6 Macdonald Crescent. Even so, demand was huge, and the board of directors canvassed the city to find a suitable house to meet requirements.
The vendor has put in fresh paint and carpet. Photo / Supplied
The property needs earthquake strengthening to meet the 34% code, as it is currently rated at just 25%. Photo / Supplied
Walker said the Rosemere backpackers closed about five years ago, and the building became a boarding house.
The vendor, however, was carrying out renovations, and there was fresh paint inside and new carpet.
The listing describes the property as a “money-maker” and a rare opportunity to acquire a distinctive residential investment property in the heart of Wellington’s CBD fringe.
The property offered guaranteed income for the next 12 months, returning $225,000 a year, providing immediate cashflow certainty for investors, the listing said.
“Currently, the owners operate the building by leasing the rooms individually. Previously, the property functioned as a backpackers’ accommodation.
“The new owner may choose to continue the existing model or explore alternative uses to further enhance returns and add value or redevelop.”
- 6 Macdonald Crescent, Te Aro, Wellington, is for sale, tender closing March 11
