Solid cash flow from Te Aro's Wild Zebra

The property at 58-60 Tory St is home to Wild Zebra Backpackers. Photo / Supplied

A distinctive black and white striped Wellington inner-city backpackers' hostel, just off Courtenay Place, is being sold as a freehold going concern.

The offer includes the Wild Zebra Backpackers' operation and all the property at 58-60 Tory St, respectively owned by Wellington Backpackers Ltd and Stayandi Trust.

The seven-storey, freehold-unit -titled building, which sits on 587sq m of land, was built in the 1940s and was originally an office building known as the Macarthy Building.

Over the years, it has had several reincarnations including accommodating the Wellington branch of the Department of Conservation.

It was renovated in the early 1980s, unit-titled in 1997, with each floor now having its own title, and converted to a backpackers around 2008.

Initially known as Wildlife Backpackers, it has more recently been rebranded Wild Zebra Backpackers with a paint job to match.

Sam McIlroy of Colliers International is marketing the building with Alistair Robertson.

McIlroy says it has multiple uses and income streams.

"On the ground floor is a restaurant, Wildfire, while levels one to five comprise the backpackers with 250 beds split into dormitory, single, double, en suite and family rooms. On the top floors are six penthouse apartments.

"The property provides a strong cash flow and we think it would make an ideal family operation because of the labour-intensive nature of this type of business.

"Alternatively, operators of backbackers elsewhere in the country will be interested in the opportunity as it enables them to sell guest nights off their existing operations."

The prominent Te Aro building has a net lettable area of 2260sq m and is being sold by deadline private treaty closing at 2pm on March 7, unless sold earlier.

"Courtenay Place is increasingly popular for people wanting to live and work in the central city, with stylish apartment developments attracting tenants who enjoy the precinct," says McIlroy.

"This is one of Wellington's main entertainment areas with many bars, restaurants, cafes, cinemas and concert venues.

"It is also popular with the creative, design and digital industries and has been the centre of apartment development in the city."

Nearby is the Embassy Theatre, the St James Theatre as well as many terrific cafes, bars and restaurants.