Motel near the beach occupies prime corner site
A long-established Mt Maunganui motel with high occupancy and attractive returns is for sale as a going concern — but there is potential to subdivide the property into four separate residential sites.
The freehold Bluewave Motel is on a prime corner site at 209 Valley Rd and its manager's house is about
400m from the beach.
The motel has seven one-bedroom units, including five family deluxe and two budget units, and is being marketed for sale by auction on October 30 through Bayleys Tauranga salespeople Brendon Bradley, Lynn Bradley and Jan Hodges. The property features in Bayleys’ latest Total Property portfolio magazine.
Bradley said the motel's standard of accommodation appeals to a cross section of guests, as the family and budget units can each sleep from four to six people.
“In addition, the owners have an arrangement with the neighbouring property for an additional selfcontained studio/loft apartment to be rented with the rate being split on a
45/55 per cent basis. This unit could be available to a new owner if there is mutual agreement,” said Brendon.
The motel owners have never lived on site, instead residing in Tauranga. Generally, one of the owners works only three days a week at the motel.
The other four days a live-in manager operates the front office, organises cleaning and laundry, working on average about 36 hours a week. Two cleaners also live onsite in the manager's residence.
The manager's house has a reception/office, large bedroom, bathroom with shower, and a rumpus room with a kitchenette on the basement level. The upper level includes three double bedrooms, kitchen, lounge, dining area, bathroom and a ranch slider to a deck.
“The owners say the motel could comfortably be operated by a live-in team or couple, without the need for a manager. Under this type of arrangement only one morning cleaner would probably be needed,” said Lynn.
Built in 1967, the 642sq m Bluewave Motel sits on the 1560sq m corner site of Valley Rd and McDowell St.
The property has a 105sq m basement area,100sq m upper level, with a 27sq m deck, motel units covering
375sq m, and terraces totaling about
30sq m.
Construction includes reinforced concrete foundations, concrete and timber floors, concrete block, brick veneer and fibre cement panel cladding on timber framing together with aluminium and timber joinery. The complex has recently been refurbished and upgraded.
The motel units run along McDowell St while the manager's residence is at the lower level of Valley Rd. The rest of the site has a sealed drive and parking area, lawns and landscaping. Entry to the motel is from Valley Rd and exit is from McDowell St.
Hodges said the motel has shown strong growth over the past five years. “With an excellent reputation for a small motel and strong relationships in the Mt Maunganui accommodation sector, marketing is mainly through websites booking.com and Expedia .It has a high occupancy rate from December to April and is generally busy during the rest of the year.”
Zoned suburban residential under the Tauranga City Council's operative plan, there may be potential for up to four freehold sites for a new owner to landbank while enjoying an initial holding income.
Hodges said the motel sits in an established residential area with homes on freehold and cross-lease sites. “More intensive development is underway in the area with subdivision and redevelopment of existing properties.”
Nearby amenities include primary, intermediate and secondary schools, and a small shopping centre on Oceanbeach Rd. Central Parade shopping centre is 1km away, Bayfair just over 3km and the centre of Mt Maunganui centre 6km.
Brendon said the property is an opportunity to acquire a coastal property with possible redevelopment options in a growth area.