For this project, Katherine of Studio Gaxa met with the owners of a once majestic two-storey heritage building that had been stripped of its former glory and long become a derelict fast food “chip dump”.
Following an initial meeting with the client, Katherine realised that this building had significant historical value, as well as sentimental value and meaning to the owners, an older couple who owned the property as part of their self-funded retiree portfolio.
“The owners had initially sought advice from friends who told them it was structurally damaged and beyond repair, however, they desperately wanted to save this small part of Australian heritage and turn it into a family legacy,” says Katherine.
The building had sustained a significant amount of structural damage that had it at risk of collapsing, threatening its adjacent common wall buildings.
However, after consulting with several contractors and strategizing the scope of work, Katherine agreed to take on the big project.
“What is very important is finding a reliable rental property managing agent to ensure regular maintenance upkeep—especially when setting clear expectations for exiting reports and bond claims,” Katherine says.
The actions of the previous tenant, a fast-food operator, had clearly destroyed the lovely heritage building, leaving it heading down the road of Council Orders being issued by the state authorities. While the owners possessed building insurance, they unfortunately did not have landlord insurance, and therefore did not have the necessary coverage to protect against this type of tenant destruction.
Katherine says, “This is why when leasing a property, it’s so important to have adequate Building, Landlord, and Loss of Rent insurance policies. Because of this, it was important to prioritise, stage the repairs, and renovate under a strict budget. Thankfully, the client did not have a tight deadline, so we were able to plan and assess all of our options and strategies to ensure we kept within their means.”
The first challenge faced was reinstating the integrity of the building’s structure, as well as re-establishing the heritage features. A major concern was the removal of the fast-food fittings—such as a deep-fryer extraction hood ventilation system that was cutting through the main support beam. It was important to commission an experienced builder who would understand the significance of the property and had the depth of experience and skill to deal with the building.
Katherine says, “After thoroughly searching, we engaged with a local, experienced, and award-winning builder by the name of Owen. I have to give huge kudos where it’s due!”
All parts of the building that were deemed to pose a risk were removed, and repairs to the building structure and foundations were needed to address the instability. This was followed by repairs to plumbing and the rewiring of all electrical to an upgraded three-phase system. This was all kept within the current council-approved layout.
This was followed by the next stage of the project, which was to continue to strip out the property, repairing and rendering the internal walls, removing any contaminants, and reinstating the building’s original features.
“It was important to coordinate and utilise the heritage report, which helped guide our repairs and enabled us to reinstate as many of the original building’s features as possible, including returning the stairwell to its original position and re-opening former doorways,” says Katherine.
As for the interior design, the brief was Art Deco as required by local council, with a rustic charm, modern amenities, and a light, clean, and inviting feel that would appeal to new tenants from a range of business types.
A heritage assessment was undertaken by a local accredited expert, minimising the overall costs significantly by identifying immediate Work, Health & Safety repairs, and a range of features that could be reinstated under the NSW Heritage Building Act that were beyond the Complying Development framework.
Working with local real estate agents, several offers were received from prospective tenants prior to the completion of the project. However, a common concern was attaining Development Approval for the use of the brand-new upstairs area, as only the ground level had approval for use as a takeaway business. Here, Katherine assisted the client by working with their selected tenant to submit a Development Approval variation for a cafe, thereby allowing both levels of the property to be used for trade.
Katherine was able to guide the owners to renovate the property to appeal to the broadest range of tenants, securing quality tenants who agreed to upgrade the Development Approval consent to a more valuable commodity.
This means that the owners were able to reap the benefit of having their building now trading as a two-storey cafe, resulting in an asset that is more appealing, more valuable, and can command a higher rent.
Katherine says, “Invest with a strategy for return. A professional and planned approach can mean a lot for your future financial gain!”
Finally, you can see the current restored condition of the property—no longer the dilapidated “chip dump” it once was, it is now a historically restored and profitable asset, which funds part of the clients’ retirement.
It is important to acknowledge the importance of preserving the history of a property, managing a great restoration and renovation team, verifying a tenant, and negotiating and investing smartly to maximise your equity.
Katherine says, “What isn’t captured in photos is the structural damage to the building itself. It could be described as Australia’s version of the Leaning Tower of Pisa!”