New Zealand: A serviced apartment building in Rotorua’s Central Business District has been put on the market.
The 36-unit apartment building in Hinemoa Street is operated by Quest Serviced Apartments. It is a three-storey premises converted from a commercial office block and café in 2012. The original building dated back to the 1960s and was completely refurbished and strengthened before reopening.
The building sits on a rectangular 910 square metre plot of land, and has two tenancies facing directly onto Hinemoa Street. The area is zoned Commercial A.
Macphee hospitality Limited – operator of the Quest serviced apartment franchise in central Rotorua – has a 10-year lease on the bulk of the building, expiring in 2022 with three further five-year rights-of-renewal and regular rental reviews. The lease generates an annual rental income of $486,540 plus GST and comes with 15 car parks – seven of which are under cover.
The 36 Quest units comprise a mixed configuration of studio, suite, one and two-bedroom units. The property is located just a few hundred metres walk from Rotorua’s main hospitality precinct, Eat Street, and surrounding retail and commercial areas. Week day bookings predominantly come through from the corporate sector, while leisure travelers make up the bulk of weekend reservations.
Bill Wilson of selling agents Baileys Rotorua said: “The Quest tower is one of the most modern buildings in Rotorua’s CBD, and has two excellent tenants – making it an outstanding investment opportunity for the likes of a family trust or a high net worth individual with roots in the city. The neighbouring retail, hospitality and commercial properties in and around Hinemoa Street offer the long-term potential for modernisation and reformatting. Yet there is minimal likelihood that any new development of those sites would rise taller than two or three storeys – thereby underpinning the current aesthetics and upper level views of the Quest tower. With the total refurbishment of the building undertaken just three years ago, internal infrastructure such as the lifts, electrical wiring, plumbing, fire alarm system, and air conditioning units are all in excellent condition.”
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