Napier art deco building has three tenants
The Chisholm Building which is for sale at 128 Dalton St, Napier.
The Chisholm Building, an award-winning art deco block of shops that was built following the 1931 Napier earthquake, has been placed on the market in Hawkes Bay offering split risk rental income.
The building at 128 Dalton St, Napier, is split into three well established retail tenancies which generate a combined net annual income of $83,052 plus GST.
The property has a current rating valuation of $890,000 and is for sale through James Haggerty of Bayleys Napier who is marketing it via a tender process closing at 4 pm on Wednesday December 17.
“Aranui Properties secured the trio of tenancies to add to its overall appeal as an investment opportunity,” Haggerty says. “Well located within the Napier CBD, the Chisholm Building is an attractive art deco building that has undergone a total upgrade while retaining its key heritage features.”
He says the upgrading work included seismic strengthening to 100 per cent of New Building Standard (NBS).
The building has a total area of 430 sq m and a combined lettable floor area of 414 sq m on a freehold 448 sq m site.
Clothes retailer Recycle Boutique occupies 117 sq m and has a lease running until 2016 with two further three-year rights of renewal.
Registered charity Red Cross occupies 177 sq m with a lease until 2016 with two further three-year rights-of-renewal.
The Dalton Street Bakery café occupies 120 sq m on lease until 2018 with two further two-year rights of renewal.
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.
“This property would suit a passive investor,” Haggerty says.
He says the Chisholm Building was designed by E.A Williams as a single level reinforced concrete and brick structure and was originally owned by Penman & Co when it traded as a confectionary shop and warehouse.
One of the three retail tenancies in the Chisholm Building.
Over the ensuing years, the building at 128 Dalton St became 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 saw the potential in rejuvenating the building.
Upgrade work started shortly after creating three separate tenancies each with their own entrance, individual canopy and staff amenities.
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,” Haggerty says.
“The fundamentals of a good commercial and retail investment portfolio are to have a quality constructed building, with sound tenants, on long leases. With the split risk tenancy and public recognition of the quality of the modernisation process, the Chisholm Building certainly meets all the criteria.
“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 change the site from its former warehousing, commercial and light industrial use into a much more appropriate retail space.
“This is far more in keeping with the neighbouring premises and the feel of the surrounding art deco quarter.”
Haggerty says the CBD refurbishment trend in Napier over the past year has 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 Napier CBD buildings, while retaining enhancing their original character, is underpinning the value of their investments in the quarter,” he says.
What’s on offer?
The property: Chisholm Building.
Location: 128 Dalton St, Napier.
Agency: Bayleys Napier.
Sales method: Tenders closing 4 pm December 17.
- Three established retail tenancies.
- Generates annual rent of $83,052.
- Seismically upgraded to 100 per cent NBS.
- Won civic award for art deco restoration.
- Ideal for a passive investor.