Hastings' oldest building, the Albert Hotel, has sold for $410,000 at a mortgagee auction.
A phone bid from Kaitaia opened yesterday's auction at $180,000 and with no other bids forthcoming, Colliers International auctioneer John Bowring called time-out to negotiate.
Difficulties contacting the mortgagee stalled proceedings, as the audience at Kel Tremain House in Napier waited for 30 minutes.
The most recent owner of the 1882 two-storied wooden building, on the corner of Heretaunga St East and Karamu Rd, was The Durney Land Company, which went into liquidation in 2009.
It was designated a dangerous building by the Hastings District Council in 2010.
A recent Historic Places Trust category 2 designation means the building's facade must remain when the 1643sq m site is developed.
Acting chairwoman of the Hastings City Business Association, Sandra Hazlehurst, said the vendor should be "very happy" with the price. "We don't know who the party who bought it was, but it was too much for the hospitality people we have been working with for 18 months.
"It was just too expensive, with the facade costing an extra $150,000 to $200,000."
The building was originally built by Australian immigrant and former soldier William Dennett who went on to become mayor of Hastings.
Ms Hazlehurst said another development in the eastern side of Hastings would help meet demand for office space. The nearby Power Board building was about to begin renovations.
Also sold at auction was the building that housed the former Napier branch of Kingdom Music on Dalton St in Napier. Bidding opened at $250,000 and five bidders bid 19 times until the vacant building sold for $395,000.