Bank Foreclosure: Middle to Upper Middle Income – South Suburbs of Atlanta – Childcare Center

Price: $799,000
Gross Revenue: $9,000 per month lease from tenant ($108,000 per year)
Real Estate: $1,800,000

For 5+ years, this 14,000 sq. ft. childcare center has served a middle and upper middle class community in the south suburbs of Metro Atlanta. The center is beautiful! This is a first class childcare center which the current owner paid $1,800,000 for right before the recession started. The center is located on a highly visible location which is right off a main artery road with great access.

The building owner is in bank foreclosure. The long-term tenant operates a childcare center out of the facility. The tenant pays a monthly rent of $9,000 to the landlord ($108,000 per year). This tenant has a profitable business and is current on the rent. The tenant pays for building repairs. The landlord pays the property tax of $19k per year.

The tenant is a very strong tenant and owns two additional childcare centers.

Options to buy:

  • Buy the building, and continue to lease to the existing tenant. (The tenant wants to continue to operate the childcare center and lease from the new building owner.)
  • Buy the building, and also buy the childcare business from the current tenant.
  • Buy the building, and kick out the tenant and start your childcare center. (The negative with this option is that you would lose all of the children that the current childcare center has, and would have to start from scratch. But, because this is a foreclosure, this is an option.)

Excellent reputation.

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