On your bridge officer, you will see a tag below him that is labeled "SHP". Click on that and select the Z1 for your first German ship. Then you should be able to purchase it under "new" for ship.
You will need approx 60 to 75K to buy and outfit Z1. I don't know how much creds you have, but make sure that you will have enough b4 you posibly sell your neutral DD. If not, you will have to buy a NDD again and grind to get enough cash.
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