1818 Lake Blvd - Day Care Center FOR SALE


Davis, CA 95616- Stonegate
$2,590,000 USD
760-593-7653
1818 Lake Blvd, Davis, CA for Sale
$2,590,000 USD
Day Care Center - FOR SALE
1/8
null | Request Cap Rate

1818 Lake Blvd
Davis, CA 95616
Stonegate


HIGHLIGHTS

  • Building: 4,780 Sq Ft, well-maintained since construction in 1987. Recent updates include a new roof (circa 2015) and fresh paint (circa 2001). Land:
  • Secure Location: Nestled within a residential development with apartments, fostering a familiar and comfortable setting for families.
  • Dedicated Zoning: City of Davis zoning explicitly allows for child care operations.
  • Profitable Operation: Demonstrated track record of success with room for further growth.
  • Turnkey Business: Fully equipped and operational center, ready to continue delivering exceptional child care services.
  • ***Call Listing Broker for scheduling viewing property.? DO NOT DISTURB EMPLOYEES, OWNER, NOR CLIENTELE.? PER SELLER'S REQUEST, DO NOT DISCUSS THE TRA

OVERVIEW

Overview of the Sale Combining a 40+ year established child care business with a 4,795 sq ft property on a 0.37-acre lot. This turnkey operation, with a licensed capacity of 83 children, currently enrolls 28-30, presenting significant value-add potential. The debt-free property, zoned PD 4-83 for child care, ensures continued use and adds a premium to its value, making this a rare opportunity in a family-friendly market. Value-Add Opportunities Buyers can unlock significant value through: (1) Enrollment growth to 83 children, adding $974K/year in revenue; (2) Securing $180K-$335K/year in California subsidies (e.g., CCDBG, California Preschool Program); (3) Expanding the property to increase capacity; (4) Optimizing expenses, saving $12,969/year (e.g., maintenance, utilities); and (5) Raising rates 5%, adding $59,760/year at full capacity. Total value-add potential is $1.92M-$2.25M over 5 years, with long-term appreciation adding $769K by Year 10. Exit Strategies A 3-year hold with $860K EBITDA yields $5.46M (3.5x multiple + $2.45M property), netting $3.51M after loan payoff (138% return). A 5-year hold with $1.01M EBITDA yields $7.06M (4x multiple + $3.02M property), netting $5.41M (213% return). A 10-year hold with $1M EBITDA yields $8.01M (5x multiple + $3.01M property), netting $8.01M (315% return). Buyers include local operators, regional chains, or institutional investors. Market and Location Davis’s young demographic (median age 25.1), affluent Exurbanites (9.3%), and bike/pedestrian-friendly area make it ideal for child care. Traffic counts (5,272-5,918 daily on Lake Blvd) ensure accessibility, supporting strong demand in this family-oriented market. Investment Highlights Turnkey operation offers immediate cash flow, significant growth potential, and a prime location, making it an attractive investment for buyers seeking a high-return opportunity in the child care sector.

FOR SALE DETAILS

PRICE

$2,590,000 USD

PRICE/SF

$540 USD /SF

CAP RATE

Request Cap Rate

% LEASED

-

TENANCY

Single

SALE TYPE

Investment Or Owner User

BUILDING DETAILS

PROPERTY NAME

Turnkey | Child Care Center | 83-Total Lic.

PROPERTY TYPE

Retail

PROPERTY SUBTYPE

Day Care Center

ADD'L SUBTYPES

Freestanding

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1987

SPRINKLERS

-

PARKING SPACES

-

LAND DETAILS

LAND ACRES

0.38 AC

LAND SF

16,553 SF

ZONING

-

APN/PARCEL ID

036-500-044-000

ASK ABOUT THIS PROPERTY

BJ DelhamerInsite Commercial Real Estate AdvisorsMore Info
760-593-7653

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BJ DelhamerInsite Commercial Real Estate AdvisorsMore Info
760-593-7653

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.