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Day-care centers: new darling among net leases?

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Calkain Cos., a Reston-based company that specializes in net-lease sales, says day-care centers may be the new darling of the net-lease world.

“Day care facilities that are well-run and well located can be purchased at much higher cap rates giving the investor a solid return on their investment,” Betty Friant, vice president at Calkain Cos., said in a statement. “Investors are searching for higher yields in this market where McDonalds are trading in the 4+ percent cap range.”

Friant represented the seller of a Learning Experience day care facility in Richmond in a transaction that brought $3 million at an 8.8% cap rate.  According to Calkain, the three-year-old facility with a 15-year lease was an unusual offering, because it was located in a business park setting, enabling parents to keep their children close to them at work instead of a facility closer to their home.

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