|
|
5/20/25
|
A local private investor paid $6.1 mil for a newly constructed, 10k sf ($610/sf) single-tenant childcare facility occupied by The Learning Experience in Elk Grove, a suburb of Sacramento. The property was sold by Armstrong Development Properties Inc, a private developer based in the Pittsburgh metro area.
The building, completed in 2022, sits on roughly one acre of land at 8330 Elk Grove Florin Rd, at the busiest retail intersection in Elk Grove. The property is positioned in a growing and affluent area and features a new 17-year corporate lease with 6% rent increases every five years throughout the base term and option periods, along with a $1 mil corporate guaranty—double the average guaranty for The Learning Experience.
The property benefits from its strategic position near Hwy 99, accessible via two signalized intersections. Notable retailers in the area include Safeway, Starbucks, Walgreens, and Kohl’s. Within a five-mile radius, there are more than 295,000 residents and 91,000 households, with average household incomes exceeding $110,000 within one mile.
Jeff Lefko and Bill Asher with Hanley Investment Group Real Estate Advisors represented the seller in the deal. Mason Canter of The Mason Canter Group of Los Angeles represented the buyer.
Childcare is a resilient and growing industry, with more than 18 million children in daycare weekly and revenues projected to grow from $57 bil to $62.1 bil over the next five years, according to industry reports. Rising childcare costs, an increasing number of working mothers, and the recognized importance of early education are driving sustained demand for quality childcare services.
“The property’s prominent location, coupled with its long-term lease and unique guaranty, made it an attractive investment for the buyer,” Lefko said. “Investor interest in high-quality, net-leased childcare facilities remains steady in areas like Sacramento and its affluent suburbs.”
The Learning Experience operates more than 450 centers nationwide, with plans to open 75 to 100 annually. The Elk Grove facility is operated by the chain's largest franchisee, who purchased the business at this location last year and now owns more than 20 centers. The Learning Experience has demonstrated a 99% success rate in opening new locations, making it a compelling tenant for net-leased investors.
|
|
 Return to the previous page
|
|
|
|
|
Printer-friendly Version
Email an Associate
