Warkworth gateway motor lodge

The Walton Park Motor Lodge occupies a high-profile corner-site on State Highway 1 at Warkworth. Photo / Supplied

The freehold land and buildings housing a strong-performing motor lodge, strategically located at an axis gateway, one of Auckland's busiest weekend and holiday regions, have been placed on the market.

The Walton Park Motor Lodge dominates the intersection of State Highway 1 and Whitaker Rd – a main route leading into the township of Warkworth just over 60km north of Auckland.

"This 26-unit accommodation business has been operating successfully on this site for 40 years," says Henry Napier of Bayleys Warkworth who is marketing at 2-4 Walton Ave for sale by tender closing at 4pm on Thursday June 27.

Featured in Bayleys' latest Total Property portfolio magazine, the motor lodge has 1770sq m of accommodation spread over two levels with a configuration of studio, one-and-two bedroom units facing onto a fenced central swimming pool area. The property also has an owner's dwelling with garage parking and a small meeting or functions room.

The motor lodge sits on 3819sq m of land and encompasses a two-storey four-bedroom owner/manager's unit and office; along with 30 on-site car parks. Vehicle entry points are off both Walton Ave and Hauti Drive.

All accommodation units contain their own kitchenette with cooking equipment, and refrigerator, with access to shared laundry facilities.

Walton Park Motor Lodge's tenant has a 27-year lease on the site running through until 2044 – earning $161,050 plus GST per annum, with rent reviews every two years. The operator pays all operating expenses, as well as rates. In addition to rent, the tenant also pays 6 per cent of the annual rent into a separate property maintenance fund.

Napier says the property owner and the tenant are fastidious about property maintenance.

"The lease allows the operator to renovate six rooms annually on a rolling schedule – ensuring that the decore and guest amenities remain at a very high standard. In addition, the tenant is required to repaint the property every nine-years," he says.

"On top of these undertakings, the property maintenance contribution of around $15,000 annually has enabled regular and comprehensive upkeep of facilities like the boundary fencing, swimming pool and for vegetation control.

"As a consequence of on-going maintenance and improvements, all of the property's buildings, interiors, and furnishings are in outstanding condition for their age – meaning the motel not only runs at a high occupancy rate, but also achieves excellent room yields for what is a provincial location."

The Walton Avenue property is zoned Residential Single House under the Auckland Council Plan.

"Walton Park Motor Lodge sustains its occupancy rates across multiple guest sectors – from the weekend leisure market attending events and functions in nearby Matakana and the Mahurangi Peninsula, through to commercial travellers who value its siting immediately next to State Highway 1.

"The row of lofty palm trees running along the lodge's boundary onto Whitaker Rd make Walton Park Motor Lodge instantly recognisable from the motorway," Napier says.