For Sale
$1,185,185

560 Durham RdMadison, CT 06443

High-yield NNN lease, strong tenant.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a fee-simple ownership of a 5,668 square foot daycare center in Madison, Connecticut. The property, built in 1962 and renovated in 2024, sits on a 1.06-acre lot and boasts a new 15.2-year net lease (commencing July 21, 2024 and expiring September 30, 2039) with a corporate guarantee from Busy Bees, a globally recognized childcare provider with over 990 centers worldwide and 119 in the US. The lease includes 10% rent bumps every five years, minimizing landlord responsibilities. The current annual net operating income (NOI) is $80,000, resulting in a 6.75% cap rate and a price per square foot of $209.10. The tenant, BrightPath (a Busy Bees subsidiary), is undertaking approximately $400,000 in tenant improvements. This single-story building is located in a high-income area ($206,000+ average household income within a 1-mile radius, projected to grow 10%+ by 2028) near major retailers like Starbucks and Wells Fargo. The property's strategic location, as an expansion of an existing BrightPath center across the street, ensures high occupancy (currently 100%). The asking price is $1,185,185. Lease options of 3 and 5 years are available. This is a rare opportunity to acquire a low-price-point, high-growth potential property with a strong, financially secure tenant.

Highlights

  • Busy Bees, a global leader with 990 centers (119 US), backed by the Ontario Teacher's Pension Plan, acquired the tenant in 2017.
  • New 15-year NNN lease with 10% rent increases every five years and minimal landlord responsibilities.
  • Corporate guarantee from Busy Bees secures the lease for the full 15-year term.
  • Tenant to complete approximately $400,000 in improvements.
  • Low, sustainable rents.
  • Prime location; expansion of an existing BrightPath center across the street, expected to reach full capacity post-improvements.

Property Details for 560 Durham Rd

Property type
Day care centers & nurseries, Retail properties
Square Feet
5,668 SF
Year Built/Renovated
1962/2024
Buildings
1
Stories
1
Lot Size (sq. ft)
46,174 SF

Location Insight

City
Madison
County
New Haven
State
Connecticut
Latitude
41.3169397
Longitude
-72.6066853
560 Durham Rd, Madison, Connecticut

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560 Durham Rd
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