Character building with private hotel origins
A freehold three-level commercial property which had an earlier incarnation as a private hotel and residence, has been placed on the market for sale.
Located on the eastern side of Marion Street near its intersection with Ghuznee Street, and in the popular Cuba Quarter, the fully leased character building dating back to 1910 presents a multiple income stream option for investors, with potential to further shore up returns.
Currently configured to have basement storage, a retail tenancy on the ground floor, office suites plus a five-bedroom apartment on the first floor and a superior full floor apartment on the top level, the property has a building area of 711.8 square metres.
The 587-square metre site it occupies is north-facing, with four car parks utilised by the occupiers accessed from a neighbouring property to the rear, although this sealed area is not listed on the subject property’s title.
The property is being marketed by Mark Walker, James Higgie and Sarah Lyford of Bayleys Wellington Commercial, with tenders closing 4pm Wednesday 27th October.
The property returns an annual net income of $164,572 per annum plus GST, with around 40 percent of this from the apartment tenancies, 36 percent from the ground floor retail occupier and the balance from office tenants.
Wellington City Council’s heritage archive records 9-11 Marion Street as a much altered but neatly proportioned commercial building with good street appeal, that has elements of Arts and Crafts and
Classicism architectural styles remaining.
The building has heritage value due to its history as a private hotel/residence – built for wellknown local builder J.H. Meyer in 1910 – and its association with the New Zealand Chinese Association, which purchased the property in 1950 using it as a private hotel for members.
Additionally, the building is of design interest due to its structural reinforcement, designed by S.T. Silver of the Patent Indented Steel Bar Company and an early example of reinforcing of this type in Wellington.
Currently owned by a small group of local private investors who are realigning their property interests, the property has an element of ‘‘cool’’ about it, according to Walker.
‘‘It has real street presence and with its diverse income streams, back story and location, we expect strong enquiry from investors looking for an opportunity with good returns and upside,’’ he said.
‘‘While performing well in its current guise, the lease structure could benefit from some tidying up and there is some deferred work to be done on the property so a buyer who is happy to be somewhat hands-on in the short-medium term could realise some advantages down the line.’’
The property has Central Area zoning and Walker said this part of the inner city is seeing plenty of revitalisation and activity with nearby Ghuznee Street reimagined with innovative food and beverage outlets, street art, galleries, bespoke retail and the newly opened Intrepid boutique hotel in a heritage building.