The historic former Farmers Department Store's Grand Tearoom in Hobson Street in Auckland's CBD has sold for $2.5 million.
Encompassing 569sq m of space on the top floor of what is now the Heritage Hotel, it has operated as a function centre since the landmark store's conversion to an apartment hotel in the late 1990s.
A 20-year lease to the Heritage expires in October next year and the hotel has indicated it won't be renewing the lease, says James Chan who sold the property with Bayleys' International Division colleague Matt Lee.
Chan says the purchaser has indicated an intention to convert the property to a large single penthouse apartment for living in, once the hotel lease has expired.
"The character features of the floor, particularly the high-stud ornate, art-deco ceiling, with its intricate detailing, make it an appealing residential conversion proposition. However, it will require a significant amount of additional expenditure over and above the purchase price."