daycare site in Massachusetts with 8+ years remaining on lease

[Rao Mu]

I am trying to get some expert opinion on a daycare site in massachusetts 40 miles from boston in a good demographic location. The site has an operating franchisee daycare with 8+ yrs left on lease and as per the broker the enrollment is close to it capacity and potential buyer can verify it also. The sale is at 8.25 cap rate which is enticing.. I am trying to understand what are the risks with this property.

- I can see that NNN rent is a tad high at 30$/sft and it's going to go higher to 33.5 in next 2 years and stay at 33.5$/sft there after.

- If the business is doing so well, I don't see a reason why would the business leave after 8 years. If they leave, they would be selling the business and someone will buy and will stay at the same location. At the end of the day, daycare is a location specific business.