Big Taupo CBD commercial block for sale
Tenants on the big Taupo corner site include Cobb & Co and Finn MacCuhal’s Irish Pub.
The biggest singly-owned commercial property landholding in Taupo’s central business district has been placed on the market for sale.
The 3487sq m of buildings on 2723sq m of land sits on the corner of Tongariro St and Tuwharetoa St on one of the key entry points to the town’s retail heart.
Buildings and land are being marketed for sale by Gary Harwood of Bayleys Taupo through a tender process closing on June 1.
Tenancies on the prominent site include Cobb & Co restaurant, Finn MacCuhal’s Irish Pub, a backpackers' accommodation facility, a fast food outlet and an art gallery.
The freehold block consists of four adjoining buildings — the core of which was once the original Lake Hotel dating back to 1952.
The other three buildings have been added to over the ensuing decades, with the most recent constructed in 2009.
The land is zoned Pedestrian Precinct under Taupo District Council’s plan. Combined, the five tenancies occupying the busy corner site generate $661,752 of rental revenue annually.
• Finns Taupo — operating as Finn MacCuhal’s Irish Pub with a lease term running through until June 2023 and generating $300,000 of rent a year and having three six-year rights of renewal.
• Family restaurant chain Cobb & Co — with a lease term running through until 2021 with three four-year rights of renewal after that and delivering about $193,752 in rental revenue yearly.
• Finns Global Backpackers — on a lease running through until 2017 generating $80,000 a year with three further six-year rights of renewal. The backpacker rooms are on the top level of the building and are configured in single, double, twin and dormitory formats, licensed to sleep up to 95 guests.
• Fast food outlet Kebab Turka — on a lease running until 2018 delivering rent of $45,000 a year with a further five-year right of renewal, and;
• Arthouse Verge Gallery — with a lease expiring in 2018 and bringing in $43,000 of rent a year with two further three-year rights of renewal.
The big commercial property for sale is identified by a red border.
Harwood says the corner premises strategically straddle Taupo’s two distinct retail strips — Tongariro St which is the town’s busiest arterial road, and the town’s six-block retail “hub” running between Tongariro St and Titiraupenga St.
“It’s easily the biggest commercial block in central Taupo to have come on to the market in the past two decades.”
He says the near-full tenancy schedule for the block support multiple purchasing options.
“Quite simply, it could be bought as a pure investment holding – continuing to be run under its current format and tenancy schedule,” he said.
“Long-term, there is the opportunity — subject to council consent — to add further storeys to the current structure.
“A higher floor plan could support an expansion of the existing backpacker operation, the establishment of a boutique apartment-styled hotel - of which there is nothing like it in the CBD - or even the development of residential apartments.”