Partnership Buys Montessori NNN Property Earns $695K Annual NOI

Dec 22, 2021

Guidepost Montessori, Naperville, IL
August 2021
6.75% cap rate

Partnership Buys One of the Largest Montessori Group’s NNN Properties in Competitive Bid Situation

Just when you think you have enough commercial real estate investments, another must-have opportunity presents itself, as it did with this California-based family partnership.

When Westwood Net Lease Advisor, Jon Wilsonholme, met these savvy investors for the first time, they weren’t necessarily looking for a property. However, after building a rapport and discussing unmatched triple net market opportunities, soon after they were the owners of a Guidepost Montessori near Chicago, operated by the largest private Montessori group in the nation, and collecting a net operating income (NOI) of $695,000 annually.

The Challenge – Securing a Contract on this Montessori as Fast as Possible in Highly Competitive Market

"Under Contract" signSince this seasoned commercial real estate group had not previously worked with Westwood, over the course of a couple of months, Wilsonholme got to know them and their investment requirements and built a professional relationship that produced trust. It also produced a renewed excitement in triple net opportunities.

They soon encouraged Wilsonholme to look for a special triple net property with zero landlord responsibilities in the $8–15 million price range. At this time, it was in the heart of one of the most competitive triple net investment markets in history – mid-2021. Generally, if a buyer did not act fast – immediately in most cases – he or she could miss securing a contract to purchase.

Therefore, Wilsonholme quickly put the word out to his vast, nationwide network with his clients’ criteria, which provided the result he was looking for – a brand new Guidepost Montessori had just gone on the market in Naperville, Illinois. But could they get it under contract before someone else got there first?

Guidepost Montessori schools are in hot demand. The company’s growth trajectory makes this one of the leading NNN investment property types in the US.

The Process – Worked with Family Partnership to Present an LOI within 24 Hours

Real estate Investor signing papers

Since Wilsonholme had been communicating openly with his clients for months prior to the Montessori going on the market, once he learned of its availability, they were able to move quickly to make an offer and, with Wilsonholme’s assistance, present a letter of intent (LOI) in less than 24 hours.

Perfect timing, preparation, and expert NNN knowledge paid off as the partnership was able to make a full-price, all-cash offer with the potential for a quick closing to beat out others in a bidding situation.

In collaboration with the family partnership’s long-time real estate broker, the offer was presented and accepted, and due diligence commenced.

Why Buy a NNN Guidepost Montessori?

Guidepost Montessori is the largest Montessori Group in the nation, with 75 locations in North America, and 40+ opening annually. The company has a development pipeline of $1 billion over the next 5 years.

Most offer the following (these can be slightly different for each but as a rule):

  • 15- or 20-year absolute NNN leases.
  • Corporate-guaranteed leases by parent company, Higher Ground Education.
  • Annual rent escalations (usually 2-3%) to offset inflation.
  • Three lease extension options every 5 years.
  • No landlord responsibilities.
  • High-quality properties with a large, scalable operating platform.

The Result – $695,000 NOI, 20 Years of Stable, Responsibility-Free Income with Annual Increases

The front of a new Guidepost Montessori school

Because of Wilsonholme’s expertise, level of care to get to know the client, and his representation, which he provides to buyers at no charge, this family partnership:

  1. Now owns a valuable property they would not have otherwise known of without Wilsonholme reaching out to share information about NNN market opportunities.
  2. Diversified their portfolio with a dependable, profitable NNN property.
  3. Will collect 20 years or more of hassle-free, guaranteed monthly income with annual rent escalations.
  4. Earns over $695,000.00 annual NOI, which will increase year-over-year.

To Wrap it Up – New NNN Investor Partnership Added Equitable Property to Portfolio

Westwood Net Lease Advisors Jon WilsonholmeWith Wilsonholme’s foresight, expertise, and communication, this NNN investor partnership acquired one of the most prominent, respected, and reliable early childhood learning centers in the triple net market, Guidepost Montessori, and enjoys substantial worry-free income for decades.

If you are interested in learning more about triple net lease investments or would like to use the 1031 exchange to trade an underperforming or high-maintenance property for one that offers nothing but benefits, contact Jon Wilsonholme, 314.495.4195, for a free, no-obligation conversation today.


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