Pocket-sized commercial site on prime Russell waterfront to be auctioned

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 2 September giving a buyer the opportunity to secure a miniscule slice of New Zealand history.

Marketed by Chester Rendell of Bayleys Northland, the site on The Strand with a red brick building on it - affectionately known as ‘The Bungalow’ – has been subdivided off the iconic Duke of Marlborough Hotel’s title and will be sold as a Strata Title with an option to convert this to a Fee Simple (freehold) title in time.

The Bungalow 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. The Bungalow is listed on the Duke’s website as an accommodation alternative to rooms within the hotel itself and it was formerly the hotel’s bottle store.

As Russell is one of the most visited towns in Northland by tourists from all over the world drawn to the area’s rich history and cultural significance in the wider New Zealand historical context, an opportunity exists to capture some 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 – post auction – 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 when it suits them, “says Rendell.

Behind white picket gates, The Bungalow is a 113sq m ground level building in tidy condition with an interior refit to suit the accommodation needs of travellers. A dining/kitchen area has double doors opening to a small courtyard with the sea just across the road and the roomy timber panel-lined living area also has views through to the water. There is 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 set up 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,” explains Rendell.

The site has future development potential given the land is currently zoned Commercial 3 under the Bay of Islands Transitional District Scheme, and 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. A possible scenario is for a new owner to develop a two-level apartment or even a retail unit below with apartment accommodation above,” says Rendell.

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 is available for a prospective buyer to look at.

“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,” says Rendell.

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

Further notes of interest:

• The Duke of Marlborough holds New Zealand’s oldest hotel licence – it was issued in 1840.
• The Duke is the only hotel remaining of some nine originally trading in Russell.
• The present Duke is the fourth on the site – the first having been burnt down in 1845 by Hone Heke of flagstaff fame.
• Russell is referred to in history as ‘the hell hole of the Pacific’ in reference to its early life as a whaling town with pubs and brothels dotted along the waterfront.