Historic hotel sold to local family trust

HERITAGE BUILDING: Jack Elliot and Ian McLachlan from Colliers International sold the Quest Napier for $7.1 million to a local family trust. PHOTO/SUPPLIED.

A historic Napier investment property built in the Art Deco era was sold to a local family trust for $7.1 million.

Tenanted by a four star accommodation provider, Quest Napier was awarded Quest New Zealand Franchisee of the Year in 2011.

The property sold by Colliers International by negotiation is located at 176 Dickens St and is currently leased on a 10 year term for a net rental income of $556,362 per annum.

Colliers International sales broker Ian McLachlan said the new owner, who bought the property from an overseas investor, has secured a piece of Napier that is widely admired by both locals and visitors for its architecture and heritage.

"With a long-term lease in place to a strong national tenant and a central location, this is a prime piece of real estate that has been snapped up quickly by our buyers," Mr McLachlan said.

The property is in a premier location in central Napier and is close to the main retail area, top restaurants and cafes and Marine Parade.

While it still retains its original Art Deco features the 2692sq m property underwent extensive renovations in 2008 and is now made up of 47 modern apartments with a mixture of studio, one bedroom and two bedroom apartments and 22 exclusive car parks.

In 2009, the refurbished building won two awards for its revitalisation and architecture, the NZIA Regional Commercial Architecture Awards and a Merit in the Annual Art Deco Awards for the revitalisation of a Napier landmark.

Mr McLachlan said the accommodation sector was looking to have a bright future in the region as the tourism sector continues to boom.

"The Napier tourism sector is flourishing on the back of local events such as the Food and Wine Classic, the Tremains Art Deco Festival and a myriad of other sporting, cultural and food and wine events on the city's action packed events calendar."

"Hawke's Bay's many cycle tracks and wineries are also boosting tourism in the city."