La Petite Academy
Absolute-Net Leases Zero Landlord Responsibilities
Corporate Guarantee by Learning Care Group
Attractive Annual CPI Increases Not to Exceed 2.50 Percent
Child Care Tenant has been Present this Location for Nearly 25 Years
Recent Lease Extensions and Capital Improvement Show Commitment to the Location; LPA Exercised Most Recent Option Six Months Early
Surrounded by Multiple Elementary Schools; High Average Household Income of $74,000 Plus; Densely Populated Area with Population Over 230,000 in a Five-Mile Radius
12215 Towner Avenue NE, Albuquerque, NM 87112
NEW Price $915,000
Net Operating Income $84,750
CAP Rate 9.26%
Gross Leasable Area 6,700 SF
Price per SF $136.57
Year Built / Renovated 1995 / 2015
Parcel Size 0.8 Acres
Marcus & Millichap is pleased to present La Petite Academy in Albuquerque, New Mexico. The total gross leasable area is 6,700 square feet. The absolute-net lease has a year and one-half remaining on the term. Lease is corporate guaranteed from La Petite Academy with annual CPI rent increases not to exceed 2.50 percent at the Albuquerque location. The property has two one-year options.
La Petite Academy is one of seven child care concepts of Learning Care Group. The seven concepts include over 900 locations across 34 states. Being the second largest for-profit child care provider in North America, Learning Care Group thrives off a history of success and its highly regarded reputation.
The location features a strong tenancy history, with a child care operating at this location for nearly 25 years. This property has recently extended their lease, exercising their most recent option six months early, showing a strong commitment to the site. The property is well located in the market and has strong historical performance. In addition, through completing capital improvements to the building, the tenant has illustrated a commitment to maintain their foothold as the dominant child care provider in the market.
The subject property offers an investor an ideal opportunity to acquire stable assets with a great return and no landlord responsibilities.
One year after lease expiration; 6/30/2019 the seller will guarantee the rent for one full year, if La Petite Academy does not renew their option. To eliminate the concern of whether La Petite Academy will renew upon lease expiration the seller is offering a one-year rent guarantee. Rent guarantee will be paid out in a lump sum. The seller has spoken with La Petite Academy. They are doing well, the rent is low and their enrollment is good. La Petite Academy said there is no indication they are leaving and they are happy with the space.