Top Real Estate Opportunities in the Child Care Industry
- Alan Stahl
- May 1, 2024
- 7 min read
Updated: Dec 21, 2024
Investing in child care NNN real estate can be a great opportunity for investors looking for a stable and growing sector and should be considerations for those in a 1031 tax exchange. However, with so many child care companies to choose from, it can be difficult to know which ones are the best investments. Here are some of the top child care companies to consider investing in:
Bright Horizons Family Solutions - One of the largest providers of child care and early education services in the United States, Bright Horizons operates over 1,100 child care centers in the US and UK. The company is known for its high-quality services and has a strong reputation in the industry for partnering directly with employers to offer care.
Cap rates from Bright Horizon range from 5% - 6.5% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Bright Horizon | NJ | $4,595,000 | 8,500 | 2012 | 11/2/2021 | |
Bright Horizon | WA | $1,618,226 | 21,083 | 1998 | 12/20/2021 | |
Bright Horizon | FL | $2,025,000 | 9,215 | 5.00 | 1986 | 3/31/2022 |
Bright Horizons (vacant) | WA | $629,927 | 7,772 | 1998 | 5/27/2022 |
For the full list with addresses, click here for our full 2022 Market Report.
2. KinderCare Education - KinderCare is one of the largest child care providers in the United States, with over 1,500 centers in 40 states. The company is known for its high-quality services and has a strong reputation in the industry.
Cap rates for Kindercares range from 5.5% - 6.5% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Kinder Care | IL | $2,423,000 | 10,694 | 7.84 | 1998 | 12/28/2021 |
Kinder Care | MN | $1,195,000 | 6,200 | 6.70 | 1991 | 1/6/2022 |
Kindercare | MN | $5,608,229 | 7,162 | 2021 | 10/6/2021 | |
KinderCare | VA | 10,782 | 5.75 | 2019 | 8/25/2022 | |
Kindercare | NC | $4,782,000 | 12,202 | 2019 | 4/18/2022 | |
Kindercare | WI | $4,893,000 | 12,316 | 2019 | 2/1/2022 | |
Kindercare | WI | $3,825,000 | 10,782 | 2019 | 1/14/2022 | |
Kindercare | MI | $4,126,000 | 10,782 | 5.50 | 2018 | 8/5/2022 |
Kindercare | CA | 8,042 | 2018 | 3/31/2022 | ||
KinderCare | IA | $4,798,000 | 11,961 | 5.50 | 2018 | 4/11/2022 |
KinderCare | IA | $4,720,000 | 11,992 | 2018 | 4/27/2022 | |
Kindercare | FL | $4,640,000 | 10,782 | 5.50 | 2018 | 6/29/2022 |
Kindercare | NE | $4,380,000 | 10,984 | 2018 | 4/5/2022 | |
KinderCare | AZ | $4,103,039 | 10,145 | 2007 | 7/12/2022 | |
KinderCare | MN | $3,352,941 | 9,300 | 6.75 | 2007 | 9/7/2021 |
KinderCare | MN | $1,650,000 | 10,735 | 2002 | 8/17/2022 | |
Kindercare | CA | $6,300,000 | 9,783 | 4.40 | 2002 | 1/28/2022 |
Kindercare | CA | $3,698,348 | 7,038 | 6.55 | 2001 | 1/3/2022 |
Kindercare | VA | $7,881,261 | 37,178 | 2001 | 12/17/2021 | |
Kindercare | NC | $1,777,000 | 8,806 | 2001 | 12/10/2021 | |
KinderCare | IL | $3,126,000 | 10,184 | 5.99 | 2000 | 6/20/2022 |
Kindercare | NC | $3,682,500 | 11,250 | 7.85 | 2000 | 9/3/2021 |
Kindercare | PA | $2,200,000 | 9,226 | 1999 | 10/15/2021 | |
KinderCare | NC | $3,360,000 | 11,400 | 5.37 | 1998 | 5/26/2022 |
KinderCare | MN | $2,424,000 | 9,782 | 8.40 | 1998 | 12/21/2021 |
Kindercare | NJ | $3,265,000 | 10,216 | 6.00 | 1998 | 12/23/2021 |
Kindercare | AZ | $4,280,000 | 10,400 | 5.45 | 1995 | 8/19/2022 |
KinderCare | VA | $1,305,000 | 6,090 | 1987 | 12/30/2021 | |
KinderCare | FL | $1,873,500 | 7,901 | 5.75 | 1985 | 9/23/2021 |
Kindercare | AZ | $2,015,000 | 7,280 | 5.80 | 1982 | 10/29/2021 |
KinderCare | LA | 6,591 | 7.14 | 1979 | 4/1/2022 | |
KinderCare | FL | $2,287,965 | 8,449 | 1977 | 6/28/2022 | |
Kindercare | MA | $1,940,000 | 7,200 | 1977 | 11/17/2021 | |
KinderCare | WI | $820,000 | 8,500 | 7.90 | 1962 | 10/22/2021 |
KinderCare | CA | 6,260 | 3/31/2022 |
For the full list with addresses, click here for our full 2022 Market Report.
3. The Learning Experience (TLE) - The Learning Experience is a rapidly growing child care provider with over 600 locations operating or in development across the United States and now expanding to the UK. The company's focus on technology and innovation has helped it stand out in the industry, and it is considered a strong investment opportunity. They are now rated the #1 child care franchisor in the US by Entrepreneur Franchise 500 Rankings.
Cap rates for The Learning Experience (TLE) range from 5.75% - 7.25% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
TLE | TX | $5,968,000 | 10,000 | 6.25 | 2022 | |
TLE | OK | $4,620,000 | 10,000 | 6.60 | 2021 | 4/1/2022 |
TLE | FL | $4,765,000 | 10,000 | 6.40 | 2021 | 3/31/2022 |
TLE | OH | $4,500,000 | 10,000 | 7.17 | 2021 | 11/19/2021 |
TLE | TN | $4,448,000 | 10,027 | 6.65 | 2021 | 11/18/2021 |
TLE | TN | $5,000,000 | 10,000 | 6.55 | 2021 | 2/7/2022 |
TLE | TX | 9,975 | 2021 | 11/1/2021 | ||
TLE | NJ | $4,600,000 | 10,000 | 7.17 | 2020 | 1/31/2022 |
TLE | CA | $5,250,000 | 9,587 | 6.28 | 2020 | 1/28/2022 |
TLE | WI | $4,916,500 | 10,000 | 7.15 | 2020 | 1/21/2022 |
TLE | CO | $4,680,000 | 8,927 | 2020 | 10/8/2021 | |
TLE | NV | $4,592,592 | 10,000 | 6.74 | 2020 | 10/1/2021 |
TLE | WI | $5,000,000 | 10,000 | 7.03 | 2020 | 1/4/2022 |
TLE | MI | $4,500,000 | 10,000 | 7.00 | 2020 | 6/14/2022 |
TLE | MO | $4,915,000 | 10,000 | 7.47 | 2020 | 10/26/2021 |
TLE | MI | $4,300,000 | 10,000 | 7.00 | 2019 | 5/31/2022 |
TLE | MO | $4,400,000 | 10,000 | 7.39 | 2019 | 3/14/2022 |
TLE | IL | $4,290,000 | 10,000 | 2018 | 4/26/2022 | |
TLE | IL | $4,175,000 | 10,000 | 6.75 | 2018 | 3/22/2022 |
TLE | MD | $4,433,333 | 10,000 | 7.50 | 2018 | |
TLE | AZ | $3,800,000 | 10,000 | 7.37 | 2017 | 4/29/2022 |
TLE | MA | $6,375,000 | 10,000 | 2016 | 12/8/2021 | |
TLE | TX | $3,500,000 | 10,000 | 7.00 | 2016 | 9/10/2021 |
TLE | TX | 10,206 | 2015 | 3/28/2022 | ||
TLE | NC | $3,550,000 | 10,995 | 2013 | 4/11/2022 | |
TLE | NJ | $3,550,000 | 10,000 | 7.89 | 2012 | 11/30/2021 |
TLE | NC | $4,182,500 | 10,000 | 7.42 | 2011 | 5/11/2022 |
TLE | NJ | $4,425,000 | 11,039 | 2011 | 12/20/2021 | |
TLE | MI | $3,680,000 | 11,016 | 8.78 | 2007 | 10/29/2021 |
TLE | MI | $4,000,000 | 10,000 | 7.00 | 1999 | 6/3/2022 |
For the full list with addresses, click here for our full 2022 Market Report.
4. The Learning Care Group – Encompassing Tutor Time, La Petite Academy, Everbrook Academy, Childtime, and more - it is one of the largest child care providers in the United States, with about 1,000 centers in the US. The company is known for its high-quality services and has a strong reputation in the industry.
Cap rates for The Learning Care Group range from 5.5% - 7.25% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Childtime | MI | $3,150,000 | 18,000 | 2000 | 4/14/2022 | |
Childtime | MI | 9,178 | 1990 | 9/1/2022 | ||
Childtime | TX | 7,191 | 1988 | 8/30/2022 | ||
Childtime | CA | 6,310 | 1988 | 11/1/2021 | ||
Childtime | CA | $4,883,500 | 10,860 | 1988 | 12/17/2021 | |
Childtime | VA | $1,900,000 | 6,348 | 6.74 | 1987 | 12/7/2021 |
Childtime | OK | 6,594 | 1986 | 11/1/2021 | ||
Childtime | OK | $1,313,000 | 6,495 | 1986 | 12/22/2021 | |
Childtime | OK | 6,597 | 1985 | 11/1/2021 | ||
La Petite Academy | MO | 8,469 | 2011 | 12/23/2021 | ||
La Petite Academy | MO | 7,300 | 5.50 | 2009 | 6/7/2022 | |
La Petite Academy | NE | $3,900,000 | 10,150 | 2007 | 3/3/2022 | |
La Petite Academy | OR | $2,270,879 | 9,500 | 1996 | 3/23/2022 | |
La Petite Academy | NV | $2,350,000 | 7,793 | 6.18 | 1996 | 12/21/2021 |
La Petite Academy | CA | $1,347,500 | 7,402 | 1985 | 8/25/2022 | |
Tutor Time | AZ | $8,800,000 | 25,652 | 8.32 | 2009 | 8/16/2022 |
Tutor Time | OH | $4,032,000 | 10,500 | 2008 | 12/29/2021 | |
Tutor Time | OH | $4,032,000 | 10,500 | 2007 | 12/29/2021 | |
Tutor Time | AZ | $4,600,000 | 11,752 | 8.50 | 2004 | 11/30/2021 |
Tutor Time | AZ | $5,575,000 | 11,752 | 9.25 | 2004 | 1/25/2022 |
Tutor Time | MI | $2,195,000 | 11,200 | 7.00 | 2001 | 9/10/2021 |
Tutor Time | TX | 10,994 | 2000 | 11/1/2021 | ||
Tutor Time | PA | 11,757 | 1998 | 11/1/2021 | ||
Tutor Time | CA | $2,124,649 | 8,886 | 1996 | 9/3/2021 |
For the full list with addresses, click here for our full 2022 Market Report.
5. Kiddie Academy – Kiddie Academy is one of the largest child care franchisors in the US, along with Goddard, The Learning Experience, and Primrose. They have over 300 units operating and are also expanding rapidly.
Cap rates for Kiddie Academy range from 5.75% - 7% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Kiddie Academy | NV | $6,875,000 | 10,500 | 2021 | 8/11/2022 | |
Kiddie Academy | IN | $5,700,000 | 10,759 | 6.00 | 2021 | 4/12/2022 |
Kiddie Academy | CO | $5,400,000 | 10,571 | 2021 | 12/30/2021 | |
Kiddie Academy | IN | $6,136,185 | 10,649 | 6.50 | 2020 | 3/16/2022 |
Kiddie Academy | FL | $5,600,000 | 11,000 | 6.51 | 2020 | 11/5/2021 |
Kiddie Academy | SC | $4,250,000 | 10,000 | 7.00 | 2020 | 10/22/2021 |
Kiddie Academy | CO | $6,330,000 | 11,000 | 6.15 | 2019 | 4/28/2022 |
Kiddie Academy | TX | $3,851,852 | 10,000 | 6.82 | 2019 | 10/1/2021 |
Kiddie Academy | FL | $4,000,000 | 10,000 | 2017 | 7/28/2022 | |
Kiddie Academy | NC | $3,000,000 | 10,000 | 2012 | 2/25/2022 | |
Kiddie Academy | PA | $3,700,000 | 10,320 | 7.34 | 2011 | 11/24/2021 |
Kiddie Academy | FL | $4,250,000 | 10,287 | 2008 | 5/20/2022 | |
Kiddie Academy | NY | $4,925,000 | 10,500 | 7.00 | 2003 | 3/28/2022 |
Kiddie Academy | WA | $4,100,115 | 12,921 | 1997 | 8/19/2022 | |
Kiddie Academy | NJ | $3,750,000 | 10,458 | 6.77 | 1953 |
For the full list with addresses, click here for our full 2022 Market Report.
6. Primrose – one of the most reputable franchisors in the space, Primrose offers some of the highest tuition rate child care services in the industry, and typically runs at a high occupancy. Primrose has approximately 500 locations operating.
Cap rates for Primrose range from 5.75% - 7% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Primrose | OH | $5,620,000 | 15,000 | 2018 | 3/11/2022 | |
Primrose | NC | $5,000,000 | 11,734 | 2015 | 9/27/2021 | |
Primrose | OH | $1,800,000 | 11,494 | 2011 | 6/29/2022 | |
Primrose | CA | $6,540,000 | 15,121 | 6.42 | 2009 | 6/24/2022 |
Primrose | MA | $3,500,000 | 11,000 | 2009 | 11/30/2021 | |
Primrose | OH | 11,026 | 2008 | 8/8/2022 | ||
Primrose | OH | $2,750,000 | 10,514 | 2007 | 4/27/2022 | |
Primrose | OH | 9,297 | 2006 | 8/5/2022 | ||
Primrose | GA | $3,500,000 | 10,257 | 2006 | 4/20/2022 | |
Primrose | TX | 12,500 | 2005 | 2/24/2022 | ||
Primrose | IL | $4,115,000 | 8,000 | 2004 | 8/18/2022 | |
Primrose | CO | 12,500 | 2001 | 6/1/2022 | ||
Primrose | FL | $6,585,430 | 11,569 | 6.50 | 2001 | 12/17/2021 |
Primrose | TX | 8,342 | 1998 | 1/14/2022 | ||
Primrose | TX | 8,455 | 1998 | 2/24/2022 | ||
Primrose | TX | 8,552 | 1997 | 12/1/2021 | ||
Primrose | NC | $1,600,000 | 8,451 | 1996 | 3/25/2022 | |
Primrose | GA | $3,175,000 | 8,400 | 1993 | 7/7/2022 | |
Primrose | GA | $5,500,000 | 7,220 | 1989 | 7/25/2022 | |
Primrose | OH | 11,980 | 7/29/2022 | |||
Primrose | FL | $2,317,015 | 10,032 | 1/28/2022 |
For the full list with addresses, click here for our full 2022 Market Report.
7. Goddard - As the largest child care franchisor in the US, Goddard has over 595 units. Their expansion is a little slower as of late, however they have a great reputation within the industry.
Cap rates for Goddard range from 6.25% - 7.25% on average. See comps below:
Tenant | State | Sale Price | Building SF | Cap | Yr Built | Sale Date |
Goddard | TX | 8,897 | 2020 | 11/4/2021 | ||
Goddard | IL | $4,430,800 | 9,600 | 6.25 | 2019 | 7/27/2022 |
Goddard | TX | 7,956 | 2014 | 3/4/2022 | ||
Goddard | GA | $1,785,000 | 11,721 | 2007 | 5/6/2022 | |
Goddard | IL | $1,858,500 | 8,125 | 7.75 | 2006 | 12/17/2021 |
Goddard | PA | $2,425,999 | 8,000 | 2005 | 1/28/2022 | |
Goddard | IN | $2,712,500 | 8,364 | 2004 | 8/8/2022 | |
Goddard | VA | $1,770,000 | 8,068 | 2004 | 9/30/2021 | |
Goddard | VA | $2,400,000 | 10,795 | 2001 | 6/21/2022 | |
Goddard | NC | $2,900,000 | 8,331 | 6.25 | 2000 | 7/19/2022 |
Goddard | KY | 7,833 | 1999 | 8/17/2022 | ||
Goddard | PA | $454,050 | 7,351 | 2/17/2022 | ||
Goddard | NJ | $1,200,000 | 6,156 | 12/22/2021 | ||
Goddard | PA | $1,101,759 | 6,558 | 10/1/2021 |
For the full list with addresses, click here for our full 2022 Market Report.
If you are interested in more information about available NNN child care centers available, please contact:
Alan Stahl at alan@futureinsiterealty.com
After being party to more than 40 pre-school transactions, including the leasing, development, sale, and releasing of Kindercares, Tutor Times, The Learning Experiences and even small boutique schools nationwide, and personally operating two Tutor Time Child Care Centers with an average annual enrollment of 350 students over 15 years, we have shifted our focus to pre-school brokerage.
Our intimate knowledge of the inner workings of the entire child care industry has allowed us to gain significantly more favorable terms for both the Tenant and the Landlord because we understand both positions after personally experiencing them.
Whether you want to renegotiate the lease of your current child care Tenant, sell your real estate, lease out your child care center to another pre-school Tenant, sell the child care business, or sell the real estate and child care business as a package, we can assist you.
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