Award-winning art deco central city building on the market

Wednesday, 3 December 2014, 3:41 pm
Press Release: Bayleys

Award-winning art deco central city building goes on the market for sale

An award-winning art deco block of shops built following the 1931 Napier earthquake has been placed on the market for sale.

The Chisholm Building located in Napier’s Dalton Street was designed by E.A Williams as a single-storey reinforced concrete and brick structure. It was originally owned by Penman & Co when it traded as a confectionary shop and warehouse.

Over the ensuing years, the building has been host to several tenants - including the Hawke’s Bay Herald Tribune newspaper. During the same period, the building was subjected to a range of unsympathetic various alterations.

Consequently few original features remained, except for an attractive front façade which was hidden for some years by an aluminium awning and cladding.

In June 2012 the property was acquired by developer company Aranui Properties, whose principal director Lance Sheerin clearly saw the potential in rejuvenating the building.

Upgrade work started shortly after and included strengthening to improve the earthquake compliance to its current New Building Standards rating of 100 percent, as well as the creation of three separate tenancies - each with their own entrance, individual canopy and staff amenities. It has a current rating valuation of $890,000.

The exterior of building was also repainted in an attractive colour palate in keeping with the era of the building. In recognition of the art deco restoration work on the property, Lance Sheerin was given a civic award by the Napier City Council.

The building is split into three tenancies – generating a combined annual income of $83,000 plus GST.
• Clothes retailer Recycle Boutique currently occupies 117 square metres, and has a lease running through until 2016 with two further three-year rights-of-renewal.
• Registered charity Red Cross occupies 177 square metres, and has a lease running through until 2016 with two further three-year rights-of-renewal.
• The Dalton Street Bakery café occupies 120 square metres, and has a lease running through until 2018 with two further two-year rights of renewal.

The property is being marketed for sale through a tender process with Bayleys Real Estate. Tenders for Chisholm Building close on December 17. Bayley Napier salesperson James Haggerty said Aranui Properties had secured the trio of tenancies to add to the overall appeal of the investment opportunity.

“The fundamentals of a good commercial and retail investment portfolio are to have a quality-built building, with sound tenants, on long leases. With the split-risk tenancy and public-recognition on the quality of the modernisation process, the Chisholm Building certainly meets all those criteria,” Mr Haggerty said.

“In addition, the building’s CBD location in the retail heart of the city’s art deco quarter ensures its long-term future is sustained by strong foot-traffic flows and a solid commercial presence stimulated by surrounding professional businesses.

“The reconfiguration of what was the ‘old’ building also opened up the street frontage of the property to evolve the site from its former warehousing/commercial/light industrial use into the much more appropriate retail space.

“This is far more in keeping with the neighbouring premises and the feel of the surrounding art deco quarter.”

Within the Chisholm Building, the Red Cross has 8.8 metres of street frontage, the Recycle Boutique has 6.4 metres of street frontage, and the Dalton Street Café has 6.2 metres of street frontage.

Mr Haggerty said the CBD refurbishment trend in Napier over the past year had seen similar new facades for other Dalton Street properties – including the HBS Bank corner and the State Theatre directly opposite the Chisholm Building.

“This approach by owners and developers in modernising art deco CBD buildings – while retaining, and in fact enhancing their original character - is underpinning the value of their investments in the quarter,” he said.

ENDS

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