Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property located at 14615 Glazier Avenue in Apple Valley, Minnesota. The 12,194-square-foot early childhood education building is fully leased to Jardin Academy on a long-term triple net lease. Stan Johnson Company’s Milo Spector represented the seller, a local developer named Frauenshuh, Inc., who developed the property build-to-suit for the Jardin Academy. A local private buyer purchased the property for approximately $5.0 million reflecting a 6.48 percent cap rate.
“What makes this transaction special is that despite Jardin Academy not being a ‘household’ name in the net lease childcare segment like KinderCare or Learning Care Group, we were still able to get this property sold above asking price for about the same kind of cap rate as some of the major players in the space,” said Milo Spector, Director in Stan Johnson Company’s Walnut Creek, California office. “An assignment like this really puts our team to the test in terms of marketing something new and educating buyers on why the deal makes sense, including the market fundamentals and quality of the physical asset developed by Frauenshuh. I’m proud to say we did just that on this listing and inherently increased the value for property owners with Jardin as a tenant due to the strong cap rate we achieved.”
The property was built in 2021 and is situated on 0.93 acres. The site features a 3,000-square-foot outdoor playground area and is licensed to accommodate more than 135 students from infants to pre-kindergarten years. The property is located just 20 miles from Minneapolis and draws from a rapidly growing population with strong demographics in the surrounding area. The property won the NAIOP MN Chapter Award of Excellence in the Special Purpose category.