Reimagined Carterton landmark available as freehold investment
The freehold land and buildings of the flagship Marquis of Normanby Hotel on Carterton’s main thoroughfare are for sale, with a long-term lease in place
The corner property at 63 High St North, Carterton, Wairarapa was built in 1924, replacing the original 1870s wooden hotel on the site.
The total building area is 920m2, with the property occupying a 955m2 site with 16 car parks at the corner of High Street and Broadway, at the northern end of the Carterton commercial area.
The building is owned by Anthony Walton and his wife, Sarah Albisser, who completed an extensive restoration of the property, including strengthening to 70% NBS, to provide secure, longterm rental accommodation.
The property now offers 25 individual bedrooms – some with ensuites – shared living spaces, multiple bathrooms and service rooms – including a coin-operated laundry – and outdoor areas.
Walton and Albisser are looking to retain a lease over the whole Carterton property and continue its management with their company, Marquis Hotel Apartments Ltd, retaining the business interests and entering into a new 25-year net lease with a buyer.
The full-net ratcheted lease comes with personal guarantees, and all operational outgoings will be covered by them as occupiers.
The property will provide annual income of $160,000, with built-in rental growth of 3% annually and reviews five-yearly.
Marquis Hotel Apartments has subleased the ground floor commercial premises, which is now completely independent of the accommodation component, and it is operating as a lounge bar under management by an experienced local operator.
With a shortage of rental accommodation in Carterton and the wider Wairarapa, and with limited options for young people seeking independence, Andrew Smith of Bayleys Wellington Commercial said the business model for the Marquis of Normanby underscored the long-term profitability of the business.
‘‘The idea with the Carterton property is to create an intentional community through a co-living model with support mechanisms in place for residents, and it has quickly gained strong occupancy.
‘‘The vendors of the property are well-known for their community and outreach work both in New Zealand and overseas via their Global Tribe initiative,’’ he said.
‘‘By freeing up capital from the sale of the land and buildings as a freehold investment proposition, the owners will be able to continue developing similar projects elsewhere around the country.’’
Smith said the offering was essentially like a freehold motel investment, with a similarly structured lease.
‘‘Investors will recognise the value equation offered here, with a completely hands-off investment under sound management in a popular regional town that is benefitting from strong investment and growing tourism appeal.’’