

Listed by Marcus & Millichap - Chicago Oak Brook
$2,802,800
Childcare Network - Dallas, GA (Atlanta MSA)
Details
Property Type Retail
Sub Type Day Care/Nursery
Square Footage 14,297
Cap Rate 7.50%
NOI $210,210
Occupancy 100%
Tenancy Single
Lease Type Absolute NNN
Lease Term 15
Lease Expiration 09/30/2032
Remaining Term 6.3
Rent Bumps Yes
Lease Options Four, Five-Year
Broker Co-Op True
Year Built 2006
Year Renovated 2017
Acreage 1.720
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 10/01/2017
Ground Lease No
Ownership Fee Simple
Corporate Guaranty (272+ Locations)
Investment highlights
Corporate Guaranty from Top 5 Operator in the Country (272+ Locations)
- Child Development Schools, Inc. is one of the Top 5 Corporate childcare companies in the country.
- Child Development Schools, Inc. currently operates over 272 locations across eleven states.
6+ Years Remaining | Absolute NNN Lease
- The CDS Inc. corporately guaranteed lease, has over 6 years remaining with four, five-year options to extend.
- The lease features 10.00% rental increases every 5 years and continuing into the option periods, growing NOI and hedging against inflation.
- The lease features zero landlord responsibilities, allowing for a passive investment for a new landlord.
Atlanta MSA – Most Populous City in Georgia
- Atlanta’s economy is highly diversified, with the metro’s top employers representing a wide variety of sectors.
- With few natural barriers to limit development, tremendous population growth over the past decade expanded the metro’s borders, and the region now has a population of roughly 6.0 million people. Over the next five years the region is expected to add approximately 316,000 residents.
- The urban core has been the epicenter of several major construction projects in recent years, with Centennial Yards headlining urban renewal in downtown Atlanta.
Demand For Child Care Remains Extremely Strong
- The U.S. child care market size was valued at USD 60.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.18% from 2023 to 2030.
- The key factor driving the growth is the rising demand for early daycare & education services with more parents returning to working in offices, the rising number of single & working mothers, advancements in learning technologies for children, and the accessibility of government funding.
- The expenditure on daycare in the U.S. is very high. As per the cost of care survey facilitated by the U.S. Department of Health and Human Services, the expenditure on these services reached up to 7% of the household income in 2021.
- Families in the U.S. are willing to spend more on child care services, indicating the high
- service demand in the U.S.
Listing Contacts


Listed by Marcus & Millichap - Chicago Oak Brook
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Loan Amount
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Annual Debt Service
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Annual Cash Flow
$210,210.00
$17,517.50/mo
Valuation Metrics
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DSCR
7.5%
Cap Rate
7.5%
ROI
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