‘ Education precinct’ building up for sale
Property has commercial accommodation and residential apartments
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 a further t wo levels of residential apartments above, all on individual titles.
Featured in Bayleys’ latest Total Property portfolio, the property is generating net annual rental income of approximately $ 1,419,000. It is for sale by private treaty through Alan Haydock and Damien Bullick of Bayleys’ Auckland city and fringe division.
“The property i s strategically positioned in the heart of the CBD education precinct surrounded by other established education facilities, including Auckland University and AUT, and i s a short distance from Queen St,” says Haydock. “It’s a must view for astute investors seeking longterm diversified income with built in rental growth, but also potential addvalue angles.”
The lease to Edenz College over Levels 1- 4 runs until October 2026 and i s returning $ 766,664pa, plus outgoings, and has two- yearly 3.5 per cent fixed rental increases.
The first four levels of the building comprise class and tutorial rooms all carpeted and sprinklered plus a library, fully fitted out caf, computer labs and student common rooms. Haydock says the extensive recent fitout includes new high quality air conditioning systems, flush fluorescent lighting and modern toilets and amenities.
Established in 1988, New Zealandowned 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 St and Mt Eden Rd 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 t wo 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 onebedroom apartments are being rented at approximately $ 410 per week with the 30 t wo- 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 t wo- level carpark managed by Tournament Parking Ltd.