A small long-established Mt Maunganui motel with high occupancy and attractive returns is on the market for sale.
The long-established freehold Bluewave Motel with a spacious manager's house about 400 metres from the beach is being sold as a going concern, however, there is potential to subdivide the property into four separate residential sites as the underlying value is in the land of the prime corner site.
Bluewave Motel at 209 Valley Road, has seven well-presented 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.
Mr Bradley said the motel's standard of accommodation appeals to a diverse cross section of guests, including sports groups as the family and budget units can sleep from four to six people each.
“In addition, the owners have an arrangement with the neighbouring property for an additional self-contained studio/loft apartment to be rented with the rate being split on a 45/55 percent basis. This unit could be available to a new owner if there is mutual agreement,” Mr Bradley said.
The motel owners have never lived on site, instead residing in Tauranga with their family. 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 and helps with the cleaning plus laundry as required, 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 Bradley, “providing a great lifestyle business opportunity of a home and income.”
Built in 1967, the 642 square metre Bluewave Motel sits on the 1,561 square metre corner site of Valley Road and McDowell Street, which was chosen for its close proximity to Mount Maunganui beach and 50 years later continues to be just as popular for the same reason and has built up a solid reputation Mrs Bradley said.
The property has a 105 square metre basement area,100 square metre upper level, with a 27 square metre deck, motel units covering 375 square metres and terraces totaling about 30 square metres. 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 ensuring future maintenance for a new owner will be minimal.”
The motel units run along McDowell Street while the manager's residence is at the lower level of Valley Road. The rest of the site has a sealed drive and parking area, lawns and landscaping. Entry to the motel is from Valley Road and exit is from McDowell Street.
Jan Hodges said the motel is operating well having shown strong growth over the past five years. “With an excellent reputation for a small motel and strong relationships in the Mount 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. Ms 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, a small shopping centre on Oceanbeach Road, Central Parade shopping centre one kilometre away, Bayfair just over three kilometres and the centre of Mt Maunganui six kilometres away.
Mr Bradley said the property is an exceptional opportunity to acquire a coastal property with possible redevelopment options in one of the country's growth areas.