The Edgewater Motor Lodge on Napier's Marine Parade is for sale with a long lease in place.
The Edgewater Motor Lodge on Napier's Marine Parade is for sale with a long lease in place.
The land and buildings of the 20-room Edgewater Motor Lodge on Marine Parade are for sale with a with a lease to the business operator until 2040.
The 1,413sq m freehold site has a 1265sq m two-storey building that is just 250m from Napier's city centre, with a Napier CityCouncil rating valuation of $2.39 million.
Zoned fringe commercial with a New Building Standards earthquake rating of 75 per cent, it also has a two-bedroom owner/manager's residence.
Built in the mid-1980s, its most recent refurbishment was two years ago, raising the property to a four-and-a-half star Qualmark rating.
The accommodation operators leasing the premises have been running Edgewater Motor Lodge since 2007 and have signed a tenancy rental agreement lasting for at least another 24 years. The lease currently generates an annual return of $225,750 + GST.
It is being offered at auction in Auckland on November 30.
Bayleys Auckland agent Paul Dixon said that with Hawke's Bay's in-bound tourism numbers high and the business in a strong market position, the property's owners were making the most of the opportunity to sell he real estate asset in a buoyant market.
The seaward-facing building is constructed of reinforced masonry, with timber framing upstairs.
There is off-street parking for 21 cars, an outdoor plunge pool, guest laundry, and BBQ courtyard. The motel's guest rooms have studio, one and two-bedroom configurations, all with sea views.
Mr Dixon said a good relationship between the property's landlord/owner and the motel's business operator ensured a regular and comprehensive maintenance of both the buildings and the landscaped exterior.
"This maintenance schedule has not only extended the longevity of the property assets, but has also enabled Edgewater Motor Lodge to sustain above market-average nightly room rates," he said.
