Northmarq Sells Two Atlanta Area Early Childhood Education Facilities for $15.0 Million at Record Cap Rate

Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of two early childhood education facilities located in suburban Atlanta, Georgia. Located at 12070 Etris Road in Roswell and 4395 Drew Court in Cumming, both properties are leased to Little Sunshine Playhouse on long-term net leases. Northmarq’s Milo Spector, who has an extensive early childhood education track record, exclusively represented the seller, a New York-based private real estate office. A California-based investor acquired both properties for a total of approximately $15.0 million reflecting a 5.75 percent cap rate. Both parties were involved in 1031 exchanges. 

“This transaction is unique in that we represented the seller on the acquisition of these two properties just a year ago. In that short timeframe, we were able to capitalize on the aggressive shift in cap rates for this sector,” said Spector, Director in Northmarq’s Walnut Creek, California office. “I am pleased to say that we received multiple offers and ended up selling the properties for 100 percent of ask, all cash to a high-net-worth exchange buyer, setting a new record cap rate.” 

The properties were built in 2020, and the Roswell location totals 9,812 square feet on 1.40 acres. The Cumming property is situated on 3.07 acres and totals 10,850 square feet. Both communities are located in the northeast Atlanta metro area and boast strong demographics with rapidly growing populations.