Hanley Investment Group Real Estate Advisors has completed the sale of a new construction, single-tenant net-lease investment occupied by Kiddie Academy in Chicagoland. The sale price was $3,725,000, representing a 6.60% cap rate. Hanley Investment Group is one of the most active brokers in the sale of learning and childcare-lease properties and has sold 20 single-tenant childcare learning centers in the past 24 months.
Hanley Investment Group’s Executive Vice Presidents Jeff Lefko and Bill Asher, in association with ParaSell, Inc., represented the seller and developer, The Woodmont Company, based in Fort Worth, Texas. The buyer, a private investor from Fairfax, Virginia, was represented by Gordon Nielsen of Summit Commercial Real Estate, LLC of Washington, D.C.
“A daycare center is a very attractive, internet-resistant investment in today’s market for a multitude of reasons,” said Lefko. “One in three families spends 20 percent or more of their annual household income on childcare. Additionally, with an increasing number of working mothers and single-parent households, and widespread recognition that early learning contributes to life-long success, the demand for quality childcare and early education continues to rise.”
Lefko adds, “Kiddie Academy is one of the leading childcare franchise providers in the nation and has posted some of the biggest sales gains among all franchisors in the childhood learning category, including a 20 percent gain increasing to $367 million in 2019.”
The 9,492-square-foot building is located on 2.77 acres at 807 Barron Boulevard in Grayslake, Illinois. Grayslake is 40 miles from Chicago, 14 miles from Lake Michigan. There are over 48,000 households with more than 8,400 children under the age of five within a five-mile radius. The average household income is in excess of $131,000 within a one-mile radius of the property.
According to Lefko, childcare and learning centers are a $57 billion industry (18 million children in daycare per week) and forecasted to reach $62.1 billion in the next five years.
