Newport Beach, Calif. (November 8, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) has recently completed 14 sales of KinderCare Learning Centers-occupied single-tenant properties totaling in excess of $60 million. The properties were located in Wisconsin, Florida, North Carolina, Iowa, Nebraska and Michigan.
SRS NNLG’s Vice President Chad Lieber who specializes in child care-occupied facilities across the nation, represented the sellers in the transactions who were all developers. The individual buyers were private investors, with the majority in 1031 exchanges and about half paying all-cash. The newly developed single-tenant properties ranged from 10,000 to 13,000 square feet and sold at cap rates ranging from mid-5% to mid-6%.
“Many investors are surprised when they learn that they can purchase a KinderCare Learning Center which offers full corporate lease guarantees on its 1,500 locations and counting, long-term leases up to 15 years and triple net lease structures on most of their schools,” said Lieber, who has executed more than $112 million in child care property over the past 36 months.
He added, “The once-overlooked child care center-occupied triple net leased investment category has been quickly emerging as a major food group for STNL investors. Total revenue from day care centers is anticipated to grow 2.4% annually the next five years and as this trend ensues, investors and lenders will continue to add more of the asset class into their portfolio. Child care centers typically offer higher cap rates and better returns than other STNL categories including quick-service-restaurants, gas stations and pharmacies and I think there will be more and more transaction activity for child care centers in the coming years.”
In 2021, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $3.1 billion in deal volume comprised of 899 transactions in 49 states, and currently has more than $2 billion in property on the market, with more than 465 properties sold year-to-date in 2022.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2021, the group completed more than 899 sales across more than 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.