Frankton investment property with three education tenants
A brand new building housing three separate education-related tenants is on the market in the fast-growing locality of Frankton, Queenstown.
The freehold property at 4 Mountain Ash Drive, Remarkables Park, is being marketed for sale by Mark Simpson and Rory O’Donnell of Colliers International, for an asking price of $5,495,000.
The two-level building which adjoins the new Wakatipu High School, houses the Remarkable Start Early Learning Centre on the ground floor. Kip McGrath Education Centre and a child therapy and psychology service occupy the first floor. 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, says Simpson.
“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.”
The property also sits within an affordable price bracket for individual investors in the context of Queenstown’s tightly-held commercial investment market, O’Donnell says.
“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 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 verandah and 20 on-site car parks are also provided.
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 existing Queenstown and Arrowtown branches into a single new centre in the building.
The property has come to the market at a time when early childhood learning centres are receiving increased attention among property investors, says Simpson.
“The childcare sector is a growth industry, especially in the likes of 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 enrol.”
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.
The 1,568sq m property is situated on the western boundary of the new Wakatipu High School which adjoins the Remarkable’s Park retail centre. Other commercial developments are also underway on surrounding properties and the site is conveniently located to serve the residents of nearby large housing subdivisions.
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