Stable tenant in Eden Terrace

2:28 PM Monday August 1, 2016 True Commercial

The single-storey building housing a childcare centre at 7 Fleet St.

An opportunity to own a building occupied by childcare centre in Eden Terrace, is being marketed exclusively through JLL.

The freehold property at 7 Fleet St is for sale through an expressions of interest campaign, closing August 25.

The single-storey building has a floor area of 20sq m on a 367sq m site.

JLL agents Alex Wefers and Everett Jaura are marketing the property.

“The childcare centre is tenanted by The Learning Space and licensed for 23 children.

“The team behind The Learning Space is proven and well established. They run other childcare centres in the North Shore and Auckland. The current annual rent is $64,000 net with a rent review every second year. The tenant’s current term ends in 2020, with one right of renewal of six years,” Wefers says.

“The building was constructed from concrete block in 1964 and has aluminium joinery. The vendors are involved in the film industry and bought the premises in 1999. They lived and worked out of the property. After enjoying success in their business, they decided to move away from the hustle and bustle of the city,” Jaura says.

In 2006 the property was extensively renovated to a high specification with a bright, modern interior specifically fitted to accommodate the childcare centre.

“The investment will certainly appeal to passive investors looking for stable income flow and there may be other angles too. Developers who are satisfied by the holding income over the remainder of the tenancy may be drawn to the site by its city fringe location and future development potential. Land, after all, has never been this scarce in the city before,” Jaura says.

“This is a busy part of Auckland’s city fringe. The location is very convenient for families who live or work nearby. This building is located within an eight-minute walk time of Mt Eden train station, and is within walking distance of Auckland Hospital, Auckland’s universities and the city centre,” Wefers says.

“When the new Karangahape and Aotea City Rail Link stations open, these will also be within walking distance. The site is also handy to the motorway, with the Newton Rd, Symonds St and Wellington St ramps just minutes away,” Wefers says.

Projected population growth in the area is robust and is among the highest growth projections for the Auckland region. There is also a major Special Housing Area close to the property, in Great North Rd, which could hold some 200 dwellings.

“Our research shows the surrounding area has a younger population with notably higher income levels, when compared to the Auckland region and New Zealand as a whole,” Jaura says.