Te Tumu Kainga, a not for profit community housing provider, has now decided to sell the property by tender.
It and marketing agency Bayley's declined to give a ballpark figure on what the property might sell for, only saying it is expected to go well above its 2011 CV of $2.3 million.
But the new owner will need deep pockets. The home has many original character features including a broad staircase, fireplaces, entry foyer, timber floors and high ceilings; but it is in need of a major renovation.
A resource consent to convert the property into five apartments has previously been granted.
Bayley's Ponsonby saleswoman Karen Spires said more than 100 groups had viewed the property so far, including developers and private buyers expressing an interest in restoring the home to its former glory.
"We will leave it to the market to decide the future potential for this beautiful, historic property."
The property is zoned Residential 1, meaning resource consent is needed to demolish any pre-1940 building or carry out significant renovations.
Consents may be publicly notified and any additions and alterations should complement the existing building and streetscape.
Jamie Tuuta, head of Te Tumu Paeroa, the statutory trustee for Te Tumu Kainga, said the decision to sell was made after a review of its current assets.
"The property is now in need of significant refurbishment and the decision has been made that monies are better invested in other housing initiatives."
An article from the August 1957 edition of Te Ao Hou magazine, reproduced on the National Library of New Zealand website, details the history of the hostel that was affectionately known as "Heppy".
It came about thanks to the efforts of Sister Jessie Alexander, who for many years had worked with the Presbyterian Maori mission on the East Coast, in the Urewera Country, and at Taupo.
When Sister Jessie returned to Auckland, the article stated, she found "many young Maoris in Auckland at a loose end and walking the streets". After establishing a hostel in Union St, she and a group of girls visited what was then a Presbyterian manse at 29 Hepburn St.
The then minister approached the Presbytery suggesting the property be sold to become a hostel. It was bought by the Auckland and Onehunga Hostels Endowment Trust, renamed Te Tumu Kainga.
29 Hepburn St
• An 1880s mansion built for former deputy mayor Andrew Entrican on an elevated 1246sq m site in Ponsonby.
• Nicknamed "Heppy", the building has long been run as a boarding hostel for Maori girls attending local schools.
• The six-bedroom property is being sold by tender and expected to go well over CV of $2.3 million.
