A purpose-built, architecturally-designed property, housing a premium early childhood centre and cafe as its long-term tenants, is for sale in Pakuranga.
"This state-of-the-art centre is an excellent long-term investment proposition," says Jimmy O'Brien of Colliers International who, with colleague Peter Kermode, is selling 149 Cascades Rd by deadline private treaty closing at 4pm on May 31 unless it sells earlier by negotiation.
The 750sq m building and 8675sq m property generates total annual rent of $415,860 from a new 15-year lease to New Shoots, a boutique early childhood centre operator paying $340,860 per annum; and Source Cafe on a five-year lease earning $75,000 per annum.
"Since opening, both tenants have been trading above expectations making this property an ideal split-risk investment opportunity," O'Brien says.
The freehold cross-leased site is zoned Business under the operative Manukau District Plan.
O'Brien says the property is located on a high-profile riverside site adjoining Lloyd Elsmore Park with tranquil views over a neighbouring golf course.
Designed by Phil Smith, a UK architect who specialises in education design, the centre's construction is of high-quality, durable materials to reduce long term maintenance and increase longevity.
Kermode, Colliers' early childhood centre property specialist, says New Shoots is licensed for 115 children.
"Pakuranga is undersupplied when it comes to quality early childhood education facilities," he says.
"New Shoots has generous indoor and outdoor areas that provide an inviting 'home-like feel' and which exceed Ministry of Education requirements," he says.
New Shoots was established in 2010 by two early childhood professionals with more than 50 years of collective experience in the sector.
"It has since grown into a boutique brand of six early childhood centres, with two more due to open this year," Kermode says.
"Already a well-known name in the market, New Shoots attracts high-quality teachers and support staff who share the same passion and vision for educating and caring for children."
Kermode says all New Shoots buildings are designed in close consultation with architects, landscape architects, interior designers and early childhood professionals.
"The Cascades Rd centre represents a new benchmark for functionality and sustainability in the early childhood sector. The building is fitted out with ample natural light and ventilation, rooftop solar power units, on-site wastewater treatment and finishes with low volatile organic compounds throughout."
The building has been entered in the upcoming Property Council Awards under both the Education and Green award categories.
Kermode says the early childhood sector is characterised by stability and longevity, with a low rate of building obsolescence.
"Early childhood centres often occupy buildings throughout their full economic life, and there is often considerable business goodwill attached to the premises and related licenses.
"The benefit to landlords is, that when tenants move out, it is highly likely another will come forward and inherit the existing goodwill of the previous operator."
Kermode says very few freehold early childhood centre investments come to the market, particularly the secondary market, because they are highly suited to long-term ownership.
O'Brien says Source Cafe will be a place for parents and locals to socialise, relax and catch up with one another.
"The first branch of Source, established in Pakuranga last year, has been very well received," he says,
"It quickly became a favourite among locals and has attracted customers from further afield following an early review fromDenizen magazine naming it as a dream brunch and lunch location."
Alongside the Cascades Rd premises, a second location is scheduled to open in Westgate, Auckland.
O'Brien says the early childhood centre is conveniently located at the interface between residential and commercial areas, with a combination of high profile and easy access.
High-decile schools in the area include Pakuranga College, St Marks School and St Kentigern College.
The Cascades Rd property has direct pedestrian access to Lloyd Elsmore Park via a walkway alongside the river.