For Sale
$6,650,000

8330 Elk Grove Florin RdSacramento, CA 95829

High-growth area, 17-year lease, strong NOI.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a 9,900 square foot, single-tenant, NNN-leased daycare center in Sacramento, CA. The property, built in 2022, sits on a 0.99-acre lot at 8330 Elk Grove Florin Rd, 95829 and is 100% occupied by The Learning Experience, a rapidly expanding national franchise with over 450 centers. The current lease commenced November 19, 2023, and extends to November 30, 2040, with two five-year renewal options, each including a 6% rent increase. The lease includes a substantial $1 million corporate guaranty. The property boasts a strong Net Operating Income (NOI) of $432,067, yielding a 6.50% cap rate. Located in a high-growth, affluent Sacramento suburb with average household incomes exceeding $110,000 within a one-mile radius, this center benefits from high visibility at a busy intersection (67,000 cars per day). The property's location is easily accessible from two signalized intersections. The asking price is $6,650,000. This is a rare opportunity to acquire a newly constructed, high-performing childcare center with a long-term lease and significant upside potential. The property's strong tenant, favorable lease terms, and prime location make it an attractive investment for discerning buyers. The APN is 115-2040-001-0000. Rent increases of 6% are scheduled for year 6 and year 11.

Highlights

  • New construction, corporate-guaranteed The Learning Experience (TLE) daycare center with a new 17-year lease.
  • Lease includes 6% rent increases every 5 years throughout the base term and two 5-year options.
  • $1 million corporate guaranty, significantly exceeding the average TLE guaranty.
  • TLE is a rapidly expanding franchise with over 450 centers open or in development, adding 75-100 annually.
  • Managed by the largest TLE franchisee, operating over 20 locations, recently acquired in 2024.
  • High-traffic location accessible from two signalized intersections, including Elk Grove Florin Road and Calvine Road (67,000 cars per day).

Property Details for 8330 Elk Grove Florin Rd

Property type
Day care centers & nurseries, Retail properties
Square Feet
9,900 SF
Year Built
2022
Buildings
1
Lot Size (sq. ft)
43,124 SF

Location Insight

City
Sacramento
County
Sacramento
State
California
Latitude
38.454756
Longitude
-121.373242
8330 Elk Grove Florin Rd, Sacramento, California

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8330 Elk Grove Florin Rd
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