For Sale: 4005 North Weber Street: The 4,366 square feet Handprints Daycare facility. This building is a solid real estate investment producing $60,111 NOI. At an 8% CAP RATE = $795,000 value. That’s only $182 per square foot. The building sits on approximately 1 acre of PBC AO zoned land. It’s located adjacent to the newly designated High Tech North Nevada Avenue Corridor which will push the building’s intrinsic value (up) over time.
The tenant/guarantor is a local Christian School with a strong balance sheet. Their daycare has been in this location for 24 years. They just signed a new 3 year lease (July 1, 2020) whose natural expiration is June 2023. The rents increase $100 per month per year. The lease contains an option for an additional 3 year term.
The current rent is $5,900 per month modified gross. The landlord pays for any capital improvements, but none of the normal, nominal maintenance. Additionally, the landlord pays the property tax and insurance costs. All told, the effective NOI is approximately $60,000
Here’s the math: rent: $70,800 less tax ($4,363); less insurance ($2,126); less maintenance & management budget ($4,200) = $60,111 @ 8% cap rate = $751,387.
For a private showing and all the confidential financial details, call Tim Leigh: 719-337-9551 or Holly Trinidad: 719-337-0999