Frankton education building ticks boxes
The two-level education-related property at 4 Mountain Ash Drive. Photo / Supplied
A new two-level building housing three separate education-related tenants is for sale in Frankton near Queenstown.
The freehold property at 4 Mountain Ash Drive, Remarkables Park, is being marketed by Mark Simpson and Rory O’Donnell of Colliers International, for an asking price of $5,495,000.
The 1568sq m property is situated on the western boundary of the new Wakatipu High School which adjoins the Remarkables Park retail centre.
The building houses the Remarkable Start Early Learning Centre on the ground floor while Kip McGrath Education Centre, and a child therapy and psychology service occupy the first floor.
Simpson says all three tenants hold new, long-term leases of either 10 or 15 years.
“With total annual income of $275,251 plus GST and outgoings, a newly-constructed building and a location in the centre of high-growth Frankton, the property represents an excellent passive investment proposition,” he says.
The 706sq m building was designed by DD Architects in Christchurch and built by Alpine Group Construction. It is designed to maximise natural light and warmth through the winter and includes classroom space, offices and amenities on both levels. A large outdoor play area is accessed via a veranda and 20 on-site car parks are also provided.
“In terms of the fundamentals property investors are looking for, it ticks all the boxes with a new, high-quality building, well-located land holding and reputable tenants on long-term leases with locked in rental growth,” Simpson says.
O’Donnell says the property also sits within an affordable price bracket for individual investors in the context of Queenstown’s tightly-held commercial investment market.
The interior has been designed for maximise natural light and warmth in classrooms. Photo / Supplied
“There aren’t many opportunities for individuals or small investment groups to acquire newly-developed property in the Frankton Flats commercial market, where a lot of the assets on offer are much larger-scale. This property will likely appeal to local and national individual investors looking to capture some of Queenstown’s growth with long term security and income.”
The independently-owned Remarkable Start Early Learning Centre caters for 70-plus children, split between four separate learning spaces for different age groups.
On the first floor, various rooms offer spaces for child health and therapy professionals, managed by a local paediatric occupational therapist. In addition, Kip McGrath has amalgamated its Queenstown and Arrowtown branches into a single new centre in the building.
Simpson says the property has come to the market at a time when early childhood learning centres are receiving increased attention among property investors.
“The childcare sector is a growth industry, especially in Queenstown where high house prices mean families often require dual incomes. Queenstown’s strong population growth has resulted in high demand for quality early childhood care and education, with many local centres reporting waiting lists of families wanting to enroll.”
The government has also invested in early childhood education through subsidies, creating a stable industry and resulting in childcare centres becoming highly attractive business and investment propositions, Simpson says.
Other commercial developments are also underway on surrounding properties and the site is conveniently located to serve the residents of nearby large housing subdivisions.
Mark Simpson and Rory O’Donnell of Colliers.