$4.6M Sale of Tutor Time in Fontana
Progressive Real Estate Partners Completes Sale of Tutor Time in SoCal’s Inland Empire for $4.6M
Fontana, CA – Progressive Real Estate Partners, the Inland Empire’s leading retail real estate brokerage firm, announced today the sale of a single-tenant Tutor Time Learning Center located at 14273 Baseline Ave. in Fontana, California for $4.6M in an all-cash 1031 exchange transaction. The well-established location is one of the top performing Tutor Time childcare centers in the Inland Empire with a successful operating history of over 15 years at this location. Tutor Time is one of the largest national daycare providers with more than 900 schools in the US, Hong Kong and Indonesia.
Progressive Real Estate Partners Senior Vice President Frank Vora, CCIM exclusively marketed the property and represented the seller, a San Diego County-based private investor in the transaction. The buyer, a Los Angeles-based private investor, was represented by Chris Wen of Walton Realty.
The 10,492 square foot Tutor Time was built in 2003 and is directly adjacent to Heritage Village, a 110,000 square foot neighborhood center anchored by Vons, US Bank, Fitness 19, Panda Express and Wendy’s. The childcare center caters to children 6 weeks to 12 years of age and offers a variety of programs for infants, toddlers, pre-school and before and after school care. There are over 57,000 children under 12 years of age within a 5-mile radius of the center. Furthermore, the center is ideally located less than 1 ½ miles from the I-15 and I-210 freeways and near the high traffic intersection of Baseline Avenue and Cherry Avenue with traffic counts of over 47,000 cars per day.
The seller’s goal was to sell the property and reinvest his equity. In order to maximize the value of the property, Vora advised and subsequently worked with the seller and tenant to negotiate an early 5-year extension of the corporate lease resulting in almost 10 years of primary lease term and thereby adding tremendous value to the asset. The deal also included two 5-year options and annual rent increases further demonstrating Tutor Time’s success and commitment to this location.
“In addition to being service-based and internet resistant, the childcare industry is booming with so many working parents during this historically low unemployment environment and as a result we are seeing increased investor demand for this type of single-tenant net leased investment. This listing generated multiple qualified offers and we were able to achieve peak pricing at a 5.7% cap rate which is one of the lowest rates for a childcare center in SoCal’s Inland Empire.” according to Frank Vora.
About Progressive Real Estate Partners
Progressive Real Estate Partners (PREP) is a boutique commercial brokerage firm headquartered in Rancho Cucamonga, California. Founded in 2008, the firm specializes in the leasing and sale of retail properties in Southern California’s Inland Empire. The firm is also the exclusive Inland Empire representative of the Retail Brokers Network (RBN). Since the firm’s inception Progressive has completed over 750 lease and sales transactions in over 35 cities throughout the region. Progressive uses the latest marketing and brokerage techniques to help retailers and property owners achieve their real estate goals. The firm is led by Brad Umansky, founder and president. For further information visit www.progressiverep.com.