Education precinct building for sale
The 5450sq m building at 85 Airedale St comprises four levels of commercial accommodation. Photo / Supplied
A six-level freehold building in Auckland CBD’s educational precinct is for sale offering a split risk, Mixed-Use investment opportunity.
The 5450sq m building at 85 Airedale St comprises four levels of commercial accommodation, which have just been refurbished and leased on a new 10-year term to established education provider Edenz. There are two levels of residential apartments above, all on individual titles.
Featured in Bayleys’ latest Total Property portfolio, the property is generating net annual rent of about $1,419,000 and is for sale by private treaty through Alan Haydock and Damien Bullick of Bayleys’ Auckland city and fringe division.
“The property is strategically positioned in the heart of the CBD education precinct surrounded by other established education facilities, including the University of Auckland and AUT, and is a short distance from Queen Street,” says Haydock. “It’s a must view for astute investors seeking long-term diversified income with built in rental growth, but also potential add-value angles.”
The lease to Edenz College over Levels 1-4 runs until October 2026 and is earns $766,664 per annum plus outgoings with two-yearly 3.5 per cent fixed rental increases.
The first four levels of the building comprise class and tutorial rooms all carpeted and equipped with fire sprinklers plus a library, fully fitted out cafe, computer labs and student common rooms. Haydock says the extensive recent fitout includes new high quality air conditioning systems, flush fluorescent lighting, modern toilets and amenities.
Established in 1988, New Zealand owned Edenz caters for both Kiwi and international students and employs about 80 teachers and support staff. It has Category One education provider status with the New Zealand Qualifications Authority, the highest rating possible.
It also has campuses in Albert Street and Mt Eden Road and offers general English programmes as well as teacher training, film making, business, technology, healthcare management and digital media courses through seven separate academies.
The top two levels of 85 Airedale St contain 32 residential apartments of 42-50sq m which incorporate a separate lounge with kitchenette, bathroom and either one or two bedrooms, with some also having balconies. The residential floors are accessed via a dedicated ground floor lobby and 13-person lift.
They were used by previous occupant Auckland International College to accommodate their students but are now leased furnished on a residential tenancy basis. Two one-bedroom apartments are being rented at approximately $410 per week with the 30 two-bedroom apartments generating around $470 a week, providing total net annual income of about $652,340.
Each apartment sits on its own individual title and the four floors below are also on individual titles. Haydock says this increases the property’s attractiveness and flexibility for investors because it means they could sell some or all of these unit-titled areas in the future.
Bullick says the building has above average-sized floor areas of 755-836sq m, with good CBD views from the upper levels. It is located on top of a separately owned two-level carpark managed by Tournament Parking Ltd which offers public carparking.
Bullick adds that the property is well positioned between Symonds Street and Mayoral Drive, allowing good access to major arterial routes and the motorway system.
“Future longer term add-value options for the new owner include conversion of the commercial levels to further residential units as well as a sell down of the individually titled apartments.”