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Former Post Office building up for sale and set to deliver the goods for property investors

Tags: Commercial

One of Napier’s most historic Art Deco buildings - which survived the destructive 1931 earthquake and has been completely earthquake strengthened and remodeled over the past seven years – has been placed on the market for sale.

Napier’s former Central Post Office on the corner of Dickens and Hastings streets in the city’s central business district was built in 1929, but the heritage-listed Art Deco building was deemed earthquake prone in 2011. Its then anchor tenants, NZ Post and Kiwibank, moved out to allow for the strengthening upgrade work to be undertaken.

Following an extensive three year strengthening, refurbishing and remodeling programme completed early in 2014, the building has been steadily re-tenanted over the ensuing years. Now the three storey premises are occupied by some 12 different businesses.

The broad raft of business types includes a hair salon, beauty parlour, an accounting firm, café, telecom operator Vodafone, New Zealand Post, and Napier City Council. Combined, the 12 tenancies within the building generate an annual rental revenue of $558,362 plus GST.

The corner site landmark is being marketed for sale by Bayleys Napier. Salesperson Sam MacDonald said businesses within the building were on a range of varied lease terms stretching out as far as six years, and with multiple rights of renewal terms.

The 3185 square metre building sits on some 1554 square metres of freehold land adjacent to Napier City Council’s Upper Dickens Street car park. The building is zoned inner city commercial – Art Deco quarter, and has a new building standard (NBS) rating of 100 percent.

“The ramifications of the Canterbury earthquakes in 2010/2011, in terms of older style buildings having to be strengthened to meet new building standards, has actually been a bonus for the former Napier Central Post Office,” Mr MacDonald said.

“If it hadn’t been for the new building standard requirements, the historic Napier Central Post Office building could well have remained in a somewhat dated state.

“The resulting new floor plate, has opened up space for a greater number of tenants utilising the existing space far more efficiently – all of this while retaining the high ceilings, central entrance foyer, dual-story floor to ceiling windows, and stone façade reflective of the city’s Art Deco precinct.”

Both the first and second floors have dual access points from two separate lobbies, and have their own toilet and shower facilities. The building’s upper levels are accessed by two new lifts.

“With multiple tenancies across a spread of economic and retail sectors, the occupancy portfolio within 1 Dickens Street offers a spread-risk investment profile for any new investor owner,” Mr MacDonald said.

“The ground floor retail and commercial premises facing onto the council car park benefit from a pedestrian-friendly double-width pavement outside, sheltered by an opaque canopy overhead.

“With the council car park immediately outside, along with metered spaces on both Hastings and Dickens streets, parking for customers visiting any of the businesses within the former Napier Central Post Office site is incredibly convenient.

“Meanwhile on the Dickens Street frontage, virtual floor-to-ceiling windows have been installed to give those tenancies a real feeling of space and flow to the passing foot traffic.”

Mr MacDonald said that over the past four years, this part of Napier’s central business district had undergone significant redevelopment to underpin both its commercial and retail appeal.

“Major building upgrades around the old Napier Central Post Office include both the new Farmers and Kathmandu stores, the Paxie’s Lane development which connects Marine Parade with Hastings Street, and the just-completed 202 Hastings Street – the new home of Macpac” he said.

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