Ex-bottle store offers rare bragging rights

The red-brick 'Bungalow' building adjoins the Duke of Marlborough. Photo / Supplied

Known affectionately as The Bungalow and billed in a national marketing campaign as "arguably the smallest piece of commercial land north of Bluff", a 195sq m site on Russell's waterfront will be auctioned by Bayleys on September 2 giving a buyer the opportunity to secure a tiny slice of New Zealand's history.

The Strand site, with a distinctive red brick building on it, is being marketed by Chester Rendell of Bayleys Northland, after being subdivided off the historic Duke of Marlborough Hotel's title. It will be sold as a strata title with an option to convert this to a freehold title in time.

The Bungalow, containing a one-bedroom "funky" apartment, is tucked in between the main Duke of Marlborough Hotel, which provides 26 rooms of accommodation, restaurant, bar and conference facilities, and the Commodore's Lodge Motel on the waterfront.

It is listed on the Duke of Marlborough's website as an accommodation alternative to rooms within the hotel itself and was formerly the hotel's bottle store.

The Duke of Marlborough holds New Zealand's oldest hotel licence, issued in 1840, and is the only hotel remaining of some nine originally trading in Russell, which was once a whaling town infamous as "the hellhole of the Pacific" with pubs and brothels dotted along the waterfront.

The present "Duke" is the fourth on the site - the first having been burned down in 1845 by Maori chieftain Hone Heke of flagstaff-chopping fame.

"Russell is one of the most visited towns in Northland by tourists from all over the world who are drawn to the area's rich history and cultural significance," Rendell says. "The sale of The Bungalow gives someone the opportunity to capture a small part of this market by operating the property as an accommodation business.

"The owner of the Duke would be happy to enter into a management agreement with the new owner of The Bungalow should they wish to have the premises managed when not using it themselves. This would give an income stream throughout the year yet still allow a new owner to have preferential usage rights."

Behind white picket gates, The Bungalow is a 113sq m, ground-level building in tidy condition after an interior refit to suit the accommodation needs of travellers. A dining and kitchen area has double doors opening to a small courtyard with the seafront directly across the road. The roomy timber-panel-lined living area also has views through to the water. The Bungalow contains one large bedroom, a tiled bathroom with spa bath and modern fittings, and a separate toilet.

As the property is strata titled, there is a legal requirement for a body corporate setup to ensure that all parties are aware of their responsibilities and to protect interests.

"A proposed body corporate document has been drawn up and is available to interested parties to view. However, the vendor would be happy to discuss the terms of this with any potential buyer prior to auction," Rendell says.

The site has development potential given the land is currently zoned Commercial 3 under the Bay of Islands Transitional District Scheme, and is zoned Commercial under the Proposed Far North District Council Plan.

"We note that under this plan, there is no maximum building height for the commercial zone, subject to bulk and location requirements, and is reasonably flexible in terms of potential commercial activity for the land," Rendell explains.

"A possible scenario is for a new owner to develop a two-level apartment or even a retail unit below with apartment accommodation above.

"To illustrate how such a development could look, the owner invited a group of European architects to draw up an artist's impression of a two-level structure and this concept is available for a prospective buyer to study.

"Naturally, council guidelines and approval would need to be sought and gained for any future development work but it does appear that there are some interesting options to pursue and consider.

"There is also the chance that a new buyer will happily retain the property as it is, for a 'lock and leave' holiday home with bragging rights to their friends that they now spend their leisure time in an old bottle store."