Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant early childhood education facility leased to Xplor Preschool. The 15,314-square-foot property is located at 4601 Huffines Boulevard in Fort Worth, Texas and sits on approximately 2.1 acres. The seller, a Texas-based investment group, was represented by Milo Spector, Chris Lomuto and Matt Lipson of Stan Johnson Company. The buyers were individual investors based out of New York and China. The asset traded for $4.1 million, although the cap rate was not disclosed.
“This transaction was significant for several reasons,” said Spector, Associate Director in Stan Johnson Company’s Walnut Creek, California office. “First and foremost, we completed this transaction during the COVID-19 pandemic; however, the school was both open and paying rent in full, which really speaks to the strength of this location and operator. Additionally, we were able to complete a somewhat complex 1031 exchange for the investors.”
The property features an absolute triple net lease with a guarantee by Spring Education, a top tier corporate early education operator. At the time of sale, there were approximately 11 years remaining on the lease.
“This transaction was sourced off-market, thanks to our substantial early education database, and was an all-cash, 1031 exchange,” added Spector. “Despite the buyers being in China during the transaction negotiation period and closing, we were able to coordinate this up-leg of their exchange, allowing them to avoid capital gains from the sale of six residential properties that closed individually at different times.”