$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

Ideal for an Investor

This is an excellent opportunity for an investor looking for stable commercial real estate with a long-term tenant and predictable rental growth.

The combination of an established childcare operator, a long-term lease, contractual rent increases, and a modified net lease structure makes this an attractive income-producing investment property.

Confidential offering. The property name and exact location are being withheld from the public listing. Additional information, including the complete lease, property details, rent schedule, and financial information, will be provided to qualified buyers upon request.

Asking Price: $1,300,000