Built in the early 1900s, the two-storey property at Bridge Street in Nelson’s central business district contains popular late-night drinking and dancing venue Malbas Bar and Niteclub, along with boutique-sized Downtown Backpackers & Accommodation business. The building also contains a pair of modern apartments.
With some 20 metres of high-profile street frontage onto the busy Bridge Street retail and hospitality strip, the mix of up to four tenants generates a total net annual rental income of $175,354 when fully occupied.
Malbas occupies the entire ground floor of the Bridge Street property – using the space for its extensive bar fit out, large dancefloor, and pool table area. Access to the Downtown Backpackers & Accommodation facility and apartments on the upper level is from a private service lane off New Street at the rear of the building.
The two commercial hospitality tenants in the 1,438 square metre central city block comprise:
• Long-running Melbas Bar and Niteclub occupying 731-square metres on a 10-year lease running through to 2030 with a further 10-year right of renewal, generating net rental income of $100,000 plus GST per annum
• Downtown Backpackers & Accommodation occupying 598-square metres on a lease running through to 2024 with a further seven four-year rights of renewal, generating annual net rental income of $36,848.
Meanwhile, the pair of apartments consist of:
• A 62-square metre two-bedroom residence with a balcony overlooking Bridge Street, renting for $530 per week
• A 47-square metre one-bedroom residence also with balcony overlooking Bridge Street, renting for $400 per week.
Now the freehold land and building at 131 Bridge Street are being marketed for sale by deadline through Bayleys Nelson, with offer process closing on April 14. Salespeople Paul Vining and Gill Ireland said the property was zoned inner city centre under the Nelson City Council plan, and consisted of some 929 square metres of land. The building has a new build standards rating of 67 percent.
“With four separate revenue streams from three different economic sectors, the property at 131 Bridge Street delivers a truly split-risk investment opportunity,” Mr Vining said.
“The building has been well maintained over the decades to underpin the customer-facing activities of the tenants. The external character of the premises is very much in keeping with the heritage designs of its neighbours along Bridge Street, yet inside the decor is very modern.
“The immaculately-presented Downtown Backpackers & Accommodation operates multiple suite configurations – including single, double and bunk rooms, all with en-suites – along with shared communal cooking and living amenities. The business’s central city location and high standard of customer amenities ensures Downtown Backpackers & Accommodation consistently has one of the highest occupancy rates for its sector in the Nelson region.
“Meanwhile, Malbas Bar and Niteclub has been pumping out the tunes and serving up the cocktails for a number of years and is now well established as one of Nelson’s foremost late-night party venues.”
Vining said the property’s location in the heart of Nelson city meant the premises was well positioned to serve the commercial tenant’s clientele, while simultaneously offering convenient inner-city apartment lifestyles for occupants residing within the two apartments.
The property’s inner city-centre zoning covers Nelson CBD’s commercial area – extending from Pioneer Park in the west, to the polytechnic and the Government precinct in Albion Square on the eastern side. The city centre is the area within the ring road formed by Collingwood, Halifax, and Rutherford streets, and Selwyn Place. It also extends to the Maitai River along Trafalgar Street.