02 Feb 2022
Words Hannah Page Australian Property Journal

Wagga Wagga motel change hands after three decades

The sale of the 40-room motel, located at 117-121 Tarcutta Street by the banks of the Murrumbidgee River, is the first time the property has changed hands since it was constructed by the vendors in 1992.

Chris Kelly from ResortBrokers managed the transaction, with Peter McKinnon, who owns two further motels on the street, purchasing the asset. McKinnon’s son Jack will manage the acquisition.

The sale price secured represents a yield of 10.6% for the motel which brings in a net return of around $770,000.

“This is a big deal. It is one of the larger regional assets recently sold and continues to the upward trend of ResortBroker sales in regional New South Wales,” said Kelly.

ResortBrokers has brought in more than $71 million in regional NSW business and property settlements over the past year, including the sale of the Powerhouse Hotel Armidale by Rydges, Mantra Bathurst and Hunter Gateway Motel.

On top of its spacious suites, Lawson Riverside offers visitors direct and exclusive access to the Wiradjuri riverside walking track on the Murrumbidgee River.

“The majority of guests passing through are from Victoria or South Australia, but even with the restrictions, this motel continued to trade due to the size of Wagga Wagga and ongoing business in the area,” added Kelly.

Residential house prices in Wagga Wagga were up 16% in 2021 according to realestate.com.au, for a median value approaching $500,000, with demand for stock up 21%.

Wagga Wagga also came in as the second most desired location for the regional NSW first home buyers market in FY21, with its well-serviced airport proving to make up for its 459km distance from the state’s capital.