For Sale
$3,984,071

2325 Royal Blvd Elgin, IL 60123

19,819 SF School, 7% Cap Rate, NNN Lease

Overview

Added:
Dec 11, 2024
Days on market:
132
This exceptional investment opportunity presents a fee-simple ownership of "The Learning Tree," a 19,819-square-foot early childhood education facility located at 2325 Royal Blvd, Elgin, IL 60123. The property sits on a 2.28-acre lot and was built in 1996. Currently operating at 100% occupancy, the school benefits from a long-term, 20-year absolute triple-net (NNN) lease, with approximately 15.1 years remaining. The lease commenced on December 31, 2019, and expires on December 31, 2039, including two five-year tenant renewal options. Annual rent increases are tied to the lesser of CPI or 2%. The tenant, a premier early childhood education provider with over 120 locations and significant growth plans, provides a strong corporate guaranty. The property boasts a Net Operating Income (NOI) of $278,885, resulting in a compelling 7.00% capitalization rate and a price per square foot of $201.02. The asking price for this exceptional investment is $3,984,071. The childcare market demonstrates robust growth, with a current valuation of $65.1 billion and projected growth of nearly 4% annually through 2027. This property offers a secure, high-yield investment in a rapidly expanding sector.

Highlights

  • $3,984,071 asking price for this 19,819 SF special purpose property in Elgin, IL.
  • Fee simple ownership of a 2.28-acre lot with a 100% occupied, single-tenant NNN lease.
  • 20-year lease (15.1 years remaining) commencing December 31, 2019, and expiring December 31, 2039, with two 5-year renewal options.
  • 7.00% cap rate and $278,885 NOI, with a price per square foot of $201.02.
  • The property is a 1996-built school leased to a premier early childhood education provider with 120+ locations and significant growth potential. Annual rent increases are the lesser of CPI or 2%.

Property Details for 2325 Royal Blvd

Property type
Specialty properties, Schools
Square Feet
19,819 SF
Year Built
1996
Lot Size (sq. ft)
99,317 SF

Location Insight

City
Elgin
County
Kane
State
Illinois
Latitude
42.0514078
Longitude
-88.3331978

FAQs

What type of property is this?
Specialty property - 19,819 SF School, 7% Cap Rate, NNN Lease
Where is the specialty property located?
The property is located at 2325 Royal Blvd Elgin, IL.
What is the asking price?
The asking price for this property is $3,984,071.
What are key features of this property?
This property features: $3,984,071 asking price for this 19,819 SF special purpose property in Elgin, IL.; Fee simple ownership of a 2.28-acre lot with a 100% occupied, single-tenant NNN lease.; 20-year lease (15.1 years remaining) commencing December 31, 2019, and expiring December 31, 2039, with two 5-year renewal options.
How can I contact the broker?
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2325 Royal Blvd
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