Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a net lease early childhood education facility in the Southwest region of the U.S. The 20,600-square-foot property is fully leased to Guidepost Montessori, the nation’s largest network of Montessori schools. Milo Spector of Stan Johnson Company represented the seller, a Florida-based individual investor. The asset was purchased by a private 1031 exchange buyer from California. The property sold for approximately $10.8 million reflecting a 5.75 percent cap rate. The sale set a new nationwide cap rate record for the tenant.
“This transaction illustrates the growing interest in the early education space,” said Spector, Director in Stan Johnson Company’s Walnut Creek, California office. “We were able to source multiple offers both nationally and locally and sell the property for 100 percent of asking price to an all-cash buyer. Properties that were trading in the 7.0 percent cap rate range just a couple years ago are now trading in the 6.0’s and pushing more and more towards the 5.0 percent range. I expect this to continue as more folks search for yield on other net lease properties and struggle to find it.”
The school is situated on 4.0 acres in an upscale master-planned suburban community. The local area features outstanding demographics with projected annual population growth of 2.90 percent in a three-mile radius. Originally built in 1996, the property was renovated in 2021.