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29481763
29481764

2 Locations For Sale

Thomas K. Megenhardt Commercial Real Estate
Listed by Thomas K. Megenhardt Commercial Real Estate
$1,950,000
175 days on market
Updated 14 days ago

Essential-Service Childcare Real Estate

Details
Property Type Special Purpose
Sub Type School, Daycare facility
Square Footage 9,326
Units 2
Cap Rate 7.45%
NOI $145,200
Occupancy 100%
Tenancy Single
Lease Type Absolute NNN
Lease Term 15
Lease Expiration 06/24/2036
Remaining Term 9.9
Rent Bumps Yes
Lease Options 4 5-Year Options
Price per SqFt $209
Year Built 1981
Acreage 1.640
Lease Commencement 06/25/2021
Ground Lease No

Two Absolute NNN Investment Properties

Marketing description

INVESTMENT OPPORTUNITY

Some commercial real estate investments are driven by consumer demand. Others are driven by necessity. Childcare belongs in the second category.

TKM Commercial is pleased to exclusively present the opportunity to acquire two purpose-built childcare facilities strategically located within the Indianapolis Metropolitan Statistical Area. This offering provides investors with stable passive income through Absolute Triple Net (NNN) leases while offering investors long-term passive income from one of commercial real estate's most durable essential-service asset classes.

The properties are leased to Blooming Independence, Inc., an experienced regional childcare operator with multiple locations throughout Indiana and Florida. Recently renewed long-term leases provide dependable cash flow with minimal landlord responsibilities, creating an attractive investment opportunity for private investors, family offices, and 1031 exchange buyers.

In addition to strong in-place income, the portfolio presents an attractive long-term opportunity for value enhancement should ownership of the operating business transition in the future.

Investment highlights

Essential-Service Asset Class

Purpose-built childcare facilities serve a daily community need supported by working families, population growth, and long-term demographic trends rather than discretionary consumer spending.

Absolute Triple Net Lease Structure

Tenant responsibility includes real estate taxes, insurance, maintenance, roof, HVAC systems, and structural components, providing investors with truly passive ownership.

Long-Term Lease Security

Recently renewed leases provide predictable cash flow while minimizing near-term rollover risk.

Experienced Regional Operator

Blooming Independence, Inc. operates multiple childcare centers throughout Indiana and Florida and has successfully operated these locations for several years.

Purpose-Built Facilities

Both properties were designed specifically for childcare operations with functional classroom layouts, outdoor playgrounds, and dedicated parking, creating meaningful barriers to entry for competing facilities.

Indianapolis Metropolitan Area

Located within one of the Midwest's strongest regional economies, the portfolio benefits from continued residential growth, a diverse employment base, and sustained demand for childcare services.

Passive Investment

Absolute NNN leases allow investors to enjoy dependable income with virtually no day-to-day management responsibilities.

Future Value Enhancement Opportunities

Ownership of the operating business is currently being marketed separately. Should a purchaser acquire the real estate prior to an ownership transition, there may be an opportunity to negotiate future lease economics with a successor operator that more closely reflect market conditions while incorporating contractual rent escalations.

Listing Contacts

Thomas K. Megenhardt Commercial Real Estate
Listed by Thomas K. Megenhardt Commercial Real Estate

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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$145,200.00
$12,100.00/mo

Valuation Metrics

0
DSCR
7.45%
Cap Rate
7.45%
ROI

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