A more than century-old Dunedin building on the verge of collapse is about to be reborn as four new homes that are a nod to its past.

St Clair’s former Albert House has been bought by Dunedin developer Blue Sky Property Group, which plans to develop the site into four high-end homes which reflect the area’s character and history.

The building, at the corner of Albert and Beach Sts, was constructed in the late 19th century. Additions were made in 1912, designed by prominent Dunedin architect J.A. Burnside.

It was used as a boarding house from 1895 into the 1950s, and was run by the Salvation Army from 1955 into the 1980s.

Blue Sky Property Group director Lyndon Fairbairn said the company was ‘‘just over the moon to be able to bring the next phase to this beautiful corner site’’.

‘‘On a personal level, I’ve grown up in St Clair and I’ve walked past that building.

‘‘I’ve actually tried to buy it myself over the last decade and we finally got the opportunity to purchase it.’’

New Zealand’s first architectural practice, Mason & Wales, established in 1862, designed the original building more than a century ago and had been brought back on board to design the new homes.

It was drawing on design elements from the original structure and reinterpreting them in a modern context, ‘‘helping to carry the soul of the old building into its next chapter’’, Mr Fairbairn said.

‘‘They thought it is full circle for them and they’re really pleased and honoured to be part of it.’’

Blue Sky Property bought the building earlier this year and found it ‘‘beyond repair’’.

‘‘There’s rotten floorboards, there’s borer, there’s a bit of asbestos.

‘‘It’s been leaking for decades and it’s uninhabitable and doesn’t meet any kind of habitation requirements.’’

The new development would feature four architecturally designed residences, each more than 220sq m, with three bedrooms, double garaging and premium finishes.

St Clair Kindergarten, St Clair School and other local families had been tasked with beautifying the perimeter fencing, which would eventually be taken down but given back to the schools and families to keep.

St Clair School had even employed a local artist to help with the design of its section of fencing depicting native birds and the pu ¯ra ¯kau (legend) of the taniwha Matamata and the creation of Otago Harbour.

Blue Sky Property was working with Heritage New Zealand Pouhere Taonga and an archaeologist to ensure the site’s history was documented and respected, Mr Fairbairn said.

The building had also been 3-D scanned using drone technology by surveying firm Patersons, which would help preserve the site’s history digitally.

Mr Fairbairn said the project was the company’s first development on a historic site and it had been welcomed by the St Clair community.

‘‘I think the whole St Clair community understands the place and is finally thankful someone’s been able to put their thumbprint on it and design something that’s more fitting for the area.’’

Construction of the new homes is expected to start early next year and be completed in 2027.