Large Palmerston North motel for sale

A large central Palmerston North site that has for decades housed a motel is for sale with proven income and potential for future redevelopment with a multi-unit townhouse complex.

Positioned within a short walk of the city centre and The Square, 20-unit Palmerston North Motel attracts a mix of domestic and international guests supported by listings on global booking sites such as Tripadvisor, Booking.com and Expedia.

With a mix of studio and self-contained apartments, along with a swimming pool and spa, the West End motel is a long-established feature of the city’s visitor accommodation scene.

The motel occupies the more than 3,500-square-metre freehold site on Linton Street on a lease that runs through to 2032. This generates an annual net rental return of approximately $125,000 plus outgoings and GST per annum.

Bayleys salesperson James Crawley said the motel’s long-term presence underscored the strength of the location and the enduring demand for inner-city accommodation.

“With seven years remaining on a lease and built-in rental growth, investors will benefit from proven cashflow from day one while retaining the flexibility to plan the next evolution of the site.

“The scale of the landholding opens the door to exciting future possibilities. Whether held as a long-term landbank, repositioned over time, or redeveloped to unlock its full potential with medium-density housing, the fundamentals here are compelling.

The property at 66 Linton Street, Palmerston North, is being offered for sale through Bayleys Manawatu. It will be sold by deadline private treaty closing on Wednesday 15 April.

The buildings with a total floor area of some 1,027 square metres are underpinned by a 3,514-square-metre residential-zoned landholding.

“This represents a scale that is increasingly difficult to secure so close to the heart of the city, where large residential development sites are becoming more and more scarce,” Crawley said.

“Residential zoning under Palmerston North’s district plan offers genuine long-term possibilities, subject to council approvals, to redevelop and intensify the site to cater to demand for quality city-fringe housing in the desirable West End. The possibilities can be seen in successful neighbouring development. This will appeal to developers and land bankers alike.

“The reliable, proven holding income and clear long-term development potential make this a versatile and future-focused asset that is sure to interest buyers well beyond Palmerston North.”

Crawley said the property’s strategic CBD-fringe position, surrounded by key amenities, hospitality and major transport routes, was a key underlying strength.

“This location enhances both its current commercial use and its future redevelopment appeal.

“The West End is a well-established, tree-lined neighbourhood prized for its central location, heritage character, and proximity to city amenities. Residents and visitors benefit from a wide range of shops, supermarkets, medical services, and hospitality and entertainment options, all within easy reach,” he said.

Some of Palmerston North’s most respected schools are also nearby, including Palmerston North Intermediate Normal School, Palmerston North Boys’ High School, and Palmerston North Girls’ High School.

“Along with local parks, reserves and recreational facilities, this makes the area a magnet for families and long-term tenants,” Crawley said.