Orewa endures as one of the Auckland region’s most popular recreational destinations, which underpins the value of a freehold commercial accommodation opportunity across the road from the town’s 3km stretch of golden sand.
Having undergone a complete refurbishment since acquired by the current owners nine years ago, Orewa Beachcomber at 246 Hibiscus Coast Highway, around 30 minutes’ north of central Auckland, has seen a traditional-style motel complex transformed into an upmarket boutique apartment accommodation offering that has experienced strong occupancy across market cycles.
Recognising the intrinsic potential of the complex given the location and shortage of quality accommodation on the Hibiscus Coast, the vendors have completely revamped the apartments, with Orewa Beachcomber now rated number one in Orewa on web-based accommodation site Trip Advisor.
There are 12 individually-themed and self-contained apartments across two levels, with several different room configurations.
This includes some with family-friendly layouts on the ground floor, a two-bedroom suite, and several of the upper-level apartments (designated as an adults-only floor) having views of the beach and some having luxury baths or spa baths.
In addition, there is a three-bedroom, two-bathroom owners’ apartment with designer kitchen, spacious living areas and outdoor space.
The property sits at the corner of Hibiscus Coast Highway and Weiti Road, has 12 dedicated car parks with additional on-street parking, and the 1,017sqm site is zoned Terrace Housing and Apartment Building.
The freehold going-concern opportunity, comprising business, land and buildings, is being marketed for sale by negotiation through Michael Broome of Bayleys’ dedicated Hotels, Tourism and Leisure division and Graeme Perigo, of Bayleys Silverdale commercial team.
Broome describes the property as an optimal turn-key opportunity for an astute buyer seeking home and income with proven fundamentals and lifestyle benefits.
“Those familiar with the commercial accommodation sector will know that freehold going concern motels are hot property and Orewa Beachcomber is an outstanding example of a quality asset with all the hallmarks of a successful operative business.
“Along with favourable underlying zoning which future-proofs the intrinsic value of the site, the property provides generous on-site owner accommodation for those looking to buy, live-in and operate the apartment business, but ultimately gives the property substantive weight for an investor who could then sell the operating lease to a separate entity.
“The vision and flair demonstrated by the current owners in repositioning the property is really impressive and there is also potential to expand the income stream for both owner-operators and a lessee.”
Broome says one of the original motel units was converted by the vendors into a café area with associated liquor license, commercial-grade kitchen and while not currently operational, this could be reinvigorated under new ownership or alternatively, reinstated as an additional apartment to expand the existing accommodation offering.
“So not only does the complex provide a reliable income stream in its current guise, with forward bookings in place, there are options for a new owner to unlock further return and opportunity.”
Orewa Beachcomber has established its place in the Hibiscus Coast accommodation market with strong repeat clientele business across the holidaymaker, weekend getaway and corporate markets.
“Being just 40km from Auckland CBD, Orewa, is really well-located for Aucklanders looking for a weekend escape or extended break,” says Perigo.
“The beach is renowned for being family-friendly and great for water sports like swimming, surfing, kayaking, wind and kite surfing, and the Te Ara Tahuna walking and cycling trail is really popular with visitors and locals.
“The property is less than a 10-minute walk along the seafront promenade to the centre of Orewa which is a thriving village with boutique shopping, a vibrant restaurant and café scene, and supermarkets.”
Broome expects interest for the property to come from a wide range of buyers, including returning expats looking to acquire a home and income, and investors with some nostalgic connection to Orewa.
“This could be a legacy property holding for a family trust, or a well-capitalised investor that recognises the inherent value of a property like this so close to Auckland and could retain the physical asset as an investment and receive a passive income by on-selling the management lease.
“Data shows that international visitor numbers are already back to around two-thirds of what they were before the pandemic began, however this offering is strongly underpinned by the domestic market and is right-sized for a manageable and viable business opportunity for a savvy new owner.”