Daycare, Nursery & Pre-School

Business Opportunity for Sale
Catylist Listing ID: 30649654
Property Subtypes: Educational
Building Size (RSF): 5,556 SF
Sale Price: $699,900
Name of Establishment: Daycare, Nursery & Pre-School
Year Business Established: 1975
Gross Revenue: $360,000 (Annual)
Cash Flow: $123,264 (Annual)
Cash Flow Type: Sellers Discretionary Earnings
Living Accomodations: Yes
Sale Terms: If qualified & with security, Owner will consider some financing
Last Updated: 7/17/2021

Overview / Comments

What’s New… (also see updates as of 5/5/21 below)
“Price Reduced”
The Co-vid pandemic is getting under control and most restrictions are being lessened and/or eliminated. Business, in general, is starting to get back to pre-pandemic levels. Vaccinations, acceptance, and adherence to social distancing & mask regulations along with the warmer weather are causing this improvement. For example, more people are going back to work, thus the need for Day Care services. This business is hiring teachers and accepting children in all categories.

What’s For Sale…
This Daycare, Nursery & Pre-School business includes the Business and Real Estate. The school is located on the lower level and a 7 room, 3-bedroom rental apartment or Owner's residence is on the upper level above the school - at street level.

The school is licensed for 37 children - 16 under 3 yrs and 21 over 3 yrs. Not too big to be overwhelming but large enough to make a good living. Been a daycare/nursery for 45 years, with the present owner here for the last 15 years. Reason for selling – retirement.

The 2,944 gross s.f. school has full-time, part-time, and before & after school children's programs. There are 2 playground areas and a gazebo on the +/- 1.07 acre fenced private rear yard.

The apartment/home has 1,662 s.f. of (living area) and 2,612 (gross) s.f. including 3 porches 3-BR’s, LR, FR, Kit, Bathroom, and a 2-car garage.

The Day Care has 2,574 s.f. of classrooms (3), offices (2), and storage areas. With the porches total gross s.f. is 2,944 s.f.

The total gross S.F. of the apartments and daycare is 5,556 gross S.F.

The Financials…
Having an apartment is good for a semi-retired teacher or existing daycare worker wanting a business of their own to make a fair-excellent living and a good investment for retirement. In the meantime, he/she will be their own boss!

It is also very convenient to live upstairs from the school or you can rent it out in a lively apartment market with a big demand especially the millennials & Gen Xers.

Let this business/property provide a salary for you, pay back the bank and yourself for your original investment, and give you a Return on your total investment when you sell, and…you’re your own boss!

Besides having your home where your business is - which is awesome for some people, this daycare is in a great location. Been there for over 45 years and the current Owner for the last 15 years.

Update: The daycare now operates with 6 (including the Owner) working between 30 & 35 hours per week. Hours are Monday through Friday 7:00 am to 6:00 pm. Labor is now +/- $160,510, ($3,087/week).

Projection…
Sales for the last 6 years have averaged +/- $356,854 (2014-2019) and the last 3 years at $333,095. More full-time children vs part-time will increase sales revenues and profits, especially now that there is a demand for Day Care (many parents returning to work etc.).

At the end of 2019 and the beginning of 2020 sales increased. For the first 3 months of 2020 revenues showed a 13.1% increase over the same period of 2019 – then came the co-vid pandemic with social distancing and government and industry guidelines and restrictions.

Update: as of 5/5/21 there are 29 children at the school (10 full-time and 19 part-time). In June/2021 there will be 35 children at the school (14 full-time and 21 part-time. Revenues in April 2021 have finally returned to 2019 levels (+2.8% better than 2019).

Can you assume if the pandemic had not occurred that 2020’s sales might have been +/- $360,000 (2019’s $317,312 times 13.1% increase)? Especially if you concentrated on getting more full-time children than part-timers.

Using $360,000 as the gross, Owner’s Cash Flow could have been +/- $123,064 (estimated)!

These are some ideas for you and your advisors to research, verify and agree or disagree with.

Should you rent the apartment a fair rent for this apartment is +/- $2,200 - $2,500 per month ($26,400 - $30,000/year)...check in the local papers and the MLS to get the latest rates.

The Location…
The Day Care is located between Sherman, New Milford & Danbury (north-south) and between Brewster, NY (Route 22 & Candlewood Lake & Danbury (east-west). The Day Care runs parallel to Route 37 and Route 39 - shortcuts to everywhere!

The school is in the middle of many families ' commuting routes - perfect to drop off & pick up children while the parents work or shop.

The business is in a residential neighborhood of Danbury, CT. The site is in a mixed blue & white collar 2 earner family neighborhood. The school is pre-existing, non-conforming, and is grandfathered as a Day Care.

Interested buyers MUST sign our Confidentiality Agreement and fill out the Questionnaire before any additional information is received or a meeting is scheduled to view the business, or the location disclosed. Forms are available at this Listing or can be e-Mailed to you upon request. Detailed financial information showing ability to purchase and proof of funds may be required before a meeting or conference call is scheduled.

Additional Details

Nearest MSA: Bridgeport-Stamford-Norwalk
County: Fairfield
Industry Segment: Day Care Centers
Reason for Selling: Retirement
Value of Inventory Included ($): $0
Value of Furniture, Fixtures, and Equipment ($): $0
Real Estate Status: Real Property
Value of Real Estate Included ($): $0
Employee/Labor Description: 2 FT including Owner & 4 PT
Mgmt/Training Support Description: Owner will assist in the transition

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 3,389 38,097 104,251
Median Age: 42.91 42.17 38.58
Households: 1,110 13,445 36,334

Contact

Photograph of Listing Agent

C. J. (Charlie) Vlahos

Blanket Real Estate CTCList Member
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