The 149-place setting opened last month after extensive refurbishment was done to modernise the building.
Stepping Stones Day Nursery in Nottingham bought the building last year after Nottingham City Council closed Arboretum Nursery School.
The nursery now employs 30 staff. It has two large outdoor areas and the number of rooms has increased from four to seven.
Nursery owner Gary Holmes said, 'The sale of the nursery school presented us with a new opportunity. It is a fabulous building right next to our existing nursery, with a great outdoor area. We are really excited about the work we have done to create such a great indoor and outdoor space for all the children.'
Mr Holmes and his wife Claire, the nursery's deputy manager, set up Stepping Stones in 2000 when they identified a lack of childcare provision in the area. Mrs Holmes already had ten years' experience working in early years settings and as a nanny.
The couple chose the site for its accessible location and the scope it offered for being able to expand the nursery in the future.
Mr Holmes said, 'We recently celebrated ten years in the nursery business and we remain as passionate and enthusiastic about children as we were when we first started.
'We hope that the larger nursery will ease the continuing shortage of childcare provision in the city centre.'
