Famous Art Deco buildings for sale

Anyone familiar with Napier will know it’s famous for it’s Art Decostyle buildings and rich character which was built on the back of the 1931 Earthquake. Occasionally, these Art Deco buildings come to market – mostly as investment properties, some as redevelopment opportunities, others as collectors’ items stooped in history. Rarely do they come to market ticking all 3 of those boxes.

11 Shakespeare Road was the original Empire Hotel, sitting prominently on the corner of Shakespeare Road and Brewster Street on the fringe of Napier’s CBD. After suffering damage in the Napier Earthquake in 1931, it was the first hotel to be redeveloped after leading architects Finch and Westorholm graced it with a Spanish Mission touch. Around 1955, Rock ‘N’ Roll had its way and the establishment was renamed Hotel Cabana, transforming itself into a fine Rock music venue, well known throughout New Zealand.

The 990m² corner site is now leased to two businesses; Toad Hall Backpackers have a new 10 year lease on the original hotel site, whilst the Cabana now leases a single storey 360m² building next door, also on a new 10 year lease. “Collectively, the property returns approximately $112,000 net to the landlord per annum, and given our vendors motivation, this is sure to be a cash cow to whoever submits a successful offer” says Dan Walker of Colliers International Hawke’s Bay, who are marketing the property with Offers over $1,300,000 + GST (if any).

“Two new leases of 10 years plus rights of renewal provide the purchaser with a secure source of income, whilst having three titles could allow a new owner to investigate the potential to adjust boundaries or sell off in parts for an immediate return on their investment”.

Whilst the main buildings aren’t currently registered as being earthquake prone, it’s expected that they will require strengthening at some point in the future. Although it’s not expected to be a cheap exercise, Walker reneges the suggestion that it’s a deal-breaker, “the vendor’s prepared to factor any strengthening costs into their sale price expectations. This allows the investor to yield a high return on investment whilst also taking security from the 990m² of underlying land, which has a market value in the vicinity of $1,000 - $1,200 per square metre, based on recent sales evidence”. “The combined floor area of both buildings amounts to 1,265m². With a net rental return of approximately $112,000 per annum, that equates to an average rental rate of $88/m² ” says Walker. “Developers will note this provides scope for huge upside, with most market rentals in the range of $150-$250 per square metre”. “Overall, these are beautiful buildings with massive potential, and the numbers just seem to stack” For further information please contact:

Dan Walker

Colliers Hawke’s Bay Commercial Sales & Leasing

M: 027 545 2034 E: dan.walker@colliers.com