$1.3M Childcare Investment Property | Long-Term Tenant | 20-Year Potential Lease Term
Strong Investment Opportunity with Established Childcare Tenant
Excellent opportunity to acquire a well-maintained commercial property occupied by an established children's daycare and preschool operator. The childcare business was recently sold to a new operator, providing the property with a strong, established tenant and a newly executed long-term lease.
The property is being offered at $1,300,000 and represents an attractive opportunity for an investor seeking a commercial property with a quality tenant, long-term lease commitment, and built-in rental increases.
Lease Highlights
10-year initial lease term
Two additional 5-year extension options
Potential total lease term of 20 years
Lease commenced August 7, 2026
Current base rent: $8,500/month ($102,000 annually)
Contractual annual rent increases throughout the initial term
Base rent increases to approximately $10,158/month by Year 10
First 5-year option increases from approximately $10,361/month to $11,216/month
Second 5-year option increases from approximately $11,440/month to $12,383/month
Tenant is responsible for property taxes, insurance, utilities, maintenance, and other property-related costs under the modified net lease structure.
Tenant has a clearly defined permitted use for childcare center and preschool operations.
Why This Is an Attractive Investment
This property offers an investor the opportunity to acquire real estate with a strong operating tenant already in place, eliminating the need to lease up a vacant property or find a new tenant.
The childcare tenant has made a long-term commitment to the property, with a 10-year initial term plus two 5-year options, providing the potential for up to 20 years of occupancy.
The lease also provides for predictable contractual rent increases, creating growing rental income over time. The initial annual base rent of $102,000 increases each year throughout the initial term.
Additionally, the modified net lease structure places significant property-related expenses on the tenant, including taxes, insurance, utilities, maintenance, and other operating costs, making this an attractive investment for an owner seeking relatively predictable ownership expenses.
Investment Highlights
$1,300,000 Asking Price
Established childcare/preschool tenant
10-year initial lease
Two 5-year renewal options
Up to 20 years of potential tenancy
$102,000 initial annual base rent
Contractual annual rent increases
Rent reaches approximately $121,900 annually by Year 10
Potential rent reaches approximately $148,600 annually during the second 5-year option
Modified net lease structure
Tenant responsible for taxes, insurance, utilities, and maintenance
Recently completed business sale provides a new operator/tenant
Strong underlying use as a childcare/preschool facility
Attractive long-term investment with built-in income growth