City-centre lodge brimming with potential

Galatos Lodge is a high-occupancy accommodation business but regional zoning allows for a range of possible alternative uses. Photo / Supplied

Galatos Lodge, a 1960s commercial building converted to residential accommodation in the late 90s, is being sold as a freehold going concern with an enviable year-round occupancy rate of 97 per cent.

The lodge at 1 Galatos St, just 30m off Karangahape Rd, is up for sale by deadline private treaty, with offers closing on March 31 through Lisa Nielson of Bayleys Auckland.

Nielson said the property had proved extremely popular with students and others who worked in the city and was a good cashflow business. In addition it had a high profile with exposure to 250,000 cars a day passing on the city's two main motorways.

The building can be seen from both the Northwestern and the Southern motorways and a new owner would be able to put one sign up as of right, or use the building itself as a sign.

"Although the building produces a good cashflow from the accommodation business, this could be a lucrative sideline for any new owner," said Nielson.

It also comes with 27 parking spaces under the building and outside, of which some are leased independently for additional income. Residents are able to use any vacant parking spaces on the 970sq m site.

The property is managed by Western Park Village and its services could continue to be employed by a new owner to oversee the day-to-day running of the property and business.

The 562sq m building has 10 one-bedroom units, all with en suite bathrooms, one two-bedroom unit with en suite and a 14-bedroom space which has shared lounge, bathroom and kitchen facilities and is operated as a boarding house.

There is an on-site cleaner and common facilities such as the kitchen and entertainment area with Sky television, bathroom and other amenities which have been well maintained.

The accommodation business has a net income of about $290,000 a year. Nielson said the property's popularity lies in its close proximity to the city and the educational institutions within the CBD.

"It seems to attract a lot of student nurses and international students who don't necessarily have cars," Nielson said.

"Bus stops are a short walk away on Karangahape Rd going regularly to Auckland University, Auckland Hospital, AUT, downtown Auckland and Ponsonby." An added bonus for residents is the police CCTV inner-city camera network, monitored 24 hours a day seven days a week, which means that any potential trouble in the vicinity can be quickly dealt with.

Nielson said that while the property was being run as an accommodation business it could easily be converted to office space or used for something else. "There are a wide range of uses allowable under the Central Area Zoning and the building was constructed with another floor in mind."