The land and buildings housing Nelson's well-known pub, The Honest Lawyer, is on the market for sale with the hospitality business remaining on as tenant.
"This property occupies an entire peninsula on the edge of the sheltered and picturesque Waimea Estuary next to the suburb of Monaco," says Ken Montgomery of Colliers International.
The agency has been exclusively appointed to market for sale by negotiation the freehold land and buildings at 1 Point Rd, Monaco.
Montgomery says the 1.3ha freehold property earns solid rent and has plenty of add-value potential.
"The tip of the peninsula for sale includes approximately 3500sq m of vacant land available for residential or commercial development.
"This is a superb opportunity for developers, add-value investors or residential buyers looking for a new-build site with the added bonus of a good commercial rental income."
The Honest Lawyer was built in 1995 in the style of an old English pub, and has been trading well since then.
"The hospitality complex has bars, restaurant and dining rooms; along with a range of accommodation units and an extensive waterside garden area," says Montgomery.
"Vintage artefacts add to the quaint country pub feel, making it a popular venue for weddings and functions, overnight lodgings, or simply enjoying drinks in the sun with friends."
Montgomery says the neighbouring Hotel Grand Mercure Monaco Resort helps to drive the pub's business, with guests often wandering across the road to investigate what The Honest Lawyer has to offer for dinner and drinks.
The Honest Lawyer's lease has about four and a half years of its term remaining, with two further rights of renewal of six years each, and is earning $291,795 per annum, plus GST, with the tenant responsible for all outgoings.
"Although the tenant uses the whole property currently, the lease provides the landlord with the right to subdivide off the tip of the peninsula with no reduction in passing rental," Montgomery says.
"The absolute waterfront land is zoned Suburban Commercial, which allows for a range of permitted activities including commercial and residential uses."
Montgomery says the landscaped, vacant land is key to understanding the value of the property. It sits well above council's flood modelling for year 2100.
"The property would suit a purchaser wanting to build a home in this magnificent location, with uninhibited views across the estuary to the Western Ranges, while receiving rent from the pub complex - and also a residential or commercial developer."
Montgomery says the Monaco area is a popular weekend destination for locals, as well as guests of the award-wining Mercure resort across the road.
It is less than 9km from Nelson CBD, and a short distance from Nelson Airport and the Nelson Golf Links.
Nelson benefits from New Zealand's ongoing tourism boom, which is helping to drive economic growth. The wider Nelson region topped ASB Bank's regional economic scoreboard for two consecutive quarters this year, with local tourism experiencing exceptionally strong growth.
Nelson is an increasingly popular residential and retirement spot, thanks to its generous sunshine hours, laid back convenient lifestyle, and proximity to numerous beaches and national parks.