A landmark art deco building which is home to a flagship One New Zealand store is up for sale in Hastings.

The two-storey property occupies a commanding corner site on the main city centre retail strip of Heretaunga Street. The ground floor and mezzanine are occupied on a new long-term lease by One NZ, which has invested heavily in the creation of a new generation state-of-the-art mobile phone store.

The first floor has been transformed with a first-class fitout into an upmarket residential tenancy operated as an Airbnb.

The approximately 381-square-metre One NZ store generates an annual net rental return of $70,000 plus 75 percent of total building outgoings and GST.

The three-bedroom managed Airbnb tenancy spans some 270 square metres. This currently returns an additional net rent of approximately $39,000 per annum.

New owners could potentially boost this to some $55,000 per annum by self-managing the Airbnb.

Alternatively, converting the first floor to office use could generate an estimated annual net rent of $64,800 if leased at a market rate of $240 per square metre, according to Bayleys salesperson Rollo Vavasour.

“This tenancy could also be an attractive proposition as a luxury apartment for an owner-occupier wishing to take up residence in the inner city.

“Together, these possibilities present potential buyers with an array of options for what will be seen as a trophy investment,” Vavasour said.

The freehold land and building at 129 Heretaunga Street West, Hastings, are being offered for sale by negotiation through Vavasour of Bayleys Havelock North.

Anchor tenant One NZ (formerly Vodafone) is a top New Zealand-owned provider of phone and internet services.

Formed in 1998 as Vodafone New Zealand, One NZ now has around 2.4 million customers nationwide and employs over 3,000 people. It commands a 38 percent share of New Zealand’s mobile market, according to the Commerce Commission.

The company occupies the Heretaunga Street West store premises on a current lease that runs through to 2030 with three further three-year rights of renewal.

The building’s two tenancies make up a total floor area of approximately 651 square metres, underpinned by a fee-simple landholding of some 356 square metres.

The property has been strengthened to an Initial Evaluation Procedure seismic rating above 67 percent of new building standard.

“The building underwent a comprehensive upgrade and seismic strengthening under the auspices of Fat Parrot Architecture in 2010, as the home of AMI Insurance’s new regional office.

“As part of the new corporate lease to One NZ, the landlord and tenant have undertaken a rebranding and high-grade fitout of both the exterior and interior to meet the requirements of One NZ’s cutting-edge new generation store,” Vavasour said.

The property sits within the Central Commercial zone under the Hastings District Plan.

Vavasour said the investment credentials of both tenancies were underpinned by its high-profile city centre location with extensive frontage at the corner of Heretaunga Street West and Market Street.

“Heretaunga Street is the main retail spine of Hastings. This section enjoys the highest foot count in the city outside the Kmart complex and is home to a wealth of national and regional retail and office tenants.

“A rich assortment of shops and other businesses pulls customers and workers into the city centre from across the city and wider Hawke’s Bay, with easy access enabled by plenty of car parking and public transport,” Vavasour said.

Near neighbours to the site for sale include Farmers, Woolworths, Bunnings, ANZ, BNZ and ASB banks and the Quest Hastings hotel, along with cafes, eateries and bars.