For Sale
$6,076,000

430 Arbor Spring DrBallwin, MO 63021

Net-leased daycare, strong tenant.

Overview

Added:
Dec 11, 2024
Days on market:
116
This exceptional investment opportunity presents a fee-simple ownership of a brand-new, 10,802 square foot Guidepost Montessori daycare center in Ballwin, Missouri. Built in 2024, the property sits on a 1.73-acre lot at 430 Arbor Spring Dr, 63021 and boasts a 20-year net lease with a corporate guarantee from Higher Ground Education (HGE), a financially strong operator with over 145 locations. The lease features 2.00% annual rent increases and four, five-year renewal options, extending the lease to 2043. The current annual net operating income (NOI) is $425,320, representing a 7.00% cap rate and a price per square foot of $562.49. The asking price for this 100% occupied property is $6,076,000. Landlord responsibilities are limited to HVAC and roof/structure replacement. This investment benefits from the strong and growing demand for childcare services, making it a resilient and attractive option in the current market. The tenant's financial strength, long-term lease, and built-in rent escalations provide significant security and potential for future appreciation. This is a rare opportunity to acquire a high-quality, net-leased daycare center with a proven tenant in a desirable location.

Highlights

  • Brand new 2024 construction with a 20-year lease featuring 2.00% annual rent increases.
  • Four, five-year renewal options.
  • Landlord responsible for HVAC and roof/structure replacement.
  • Guidepost Montessori, a leading national operator with 145+ locations, is the tenant; lease guaranteed by financially strong Higher Ground Education (HGE).
  • HGE boasts significant financial backing, experienced leadership, and 100% YoY revenue growth since 2019, reaching a $600M valuation in 2022.
  • Strong market demand for childcare, projected to grow at a 4.18% CAGR through 2030, driven by increased parental workforce participation and high household expenditure on childcare.

Property Details for 430 Arbor Spring Dr

Property type
Day care centers & nurseries, Retail properties
Square Feet
10,802 SF
Year Built
2024
Lot Size (sq. ft)
75,359 SF

Location Insight

City
Ballwin
County
St. Louis
State
Missouri
Latitude
38.569318
Longitude
-90.52566
430 Arbor Spring Dr, Ballwin, Missouri

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430 Arbor Spring Dr
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