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Childcare and pet care net lease

Childcare and Pet Care NNN Loans.

Financing for childcare centers and pet care properties leased to brands like KinderCare and Pet Paradise. A fixed rate on a 30 year amortization, and no prepayment penalty.

Get a QuoteSee typical terms
Program Snapshot
$1M
Min loan
$30M
Max loan
65%
Maximum LTV
$0
Prepayment penalty
On qualifying loans
Up to 75% on our commercial DSCR loans
Sell or refinance at any time on qualifying loans
DSCR 1.35x. On a 30 year amortization
Rate 1.80% to 2.20%. Over the 5 year Treasury, fixed for 5 years
Childcare centers and pet resorts
Get a Quote
Program Overview

Services people won't skip.

Parents need childcare to get to work, and pet owners need boarding when they travel. Neither can be done online, and both depend on being close to where families live. Tenants like KinderCare and Pet Paradise build out classrooms, playgrounds, kennels, and play yards, sign long leases, and stay in neighborhoods where they've built a customer base.

The loan is based on the lease: the tenant, the guaranty, and the years remaining. Purpose-built centers in growing suburbs hold their value because another operator in the same business can step in. With no prepayment penalty, you can sell or refinance whenever the timing is right.

Typical terms

What you can typically borrow

On childcare and pet care NNN properties, loan amounts typically range from $1 million to $30 million, up to 65% of value, with no prepayment penalty.

These are typical ranges, not a quote. Your rate and loan amount depend on the tenant, the lease, the property, and your credit.

Loan amount
$1,000,000 to $30,000,000
Loan purpose
Purchase, refinance, and cash outIncluding 1031 exchange purchases
Maximum LTV
Up to 65%Up to 75% on our commercial DSCR loans
Loan term
5 year fixed
Amortization
30 yearLonger than the 20 to 25 years most banks offer
Minimum DSCR
1.35xAs low as 0.9x on our commercial DSCR loans
Property type
Childcare centers and pet carePurpose-built buildings
Prepayment penalty
NoneSell or refinance at any time on qualifying loans
Rate
Roughly 1.80% to 2.20% over the 5 year TreasuryFixed for the term
Recourse
Personal guaranty
Guaranty
Corporate or franchiseFranchise operators with 20+ locations
Lease
Years remaining reviewedLonger leases support more loan
Location
Near growing neighborhoodsValued for how easily the building re-leases
Available in
35 statesAL, AK, AR, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MS, MO, MT, NE, NH, NM, OH, OK, PA, SC, TN, TX, VA, WA, WV, WI, WY

These are typical terms. Yours depend on the tenant, the guaranty, the lease, and the property.

Buying or refinancing a childcare or pet care property?
Send the lease and the address, and we'll come back with terms.
Get a Quote
Where it fits

Childcare and pet care properties we see

KinderCare

Childcare centers on long corporate leases.

Other childcare brands

Centers leased to brands like The Learning Experience, Primrose, and Goddard.

Pet Paradise

Pet resorts with boarding, daycare, and grooming.

Pet care and veterinary

Boarding, grooming, and veterinary properties leased to national brands.

Suburban centers

Purpose-built centers near new neighborhoods and schools.

Sale-leasebacks

An operator sells the real estate and signs a long lease back.

Brand names describe the kinds of tenants we like. They aren't affiliated with Capituro.

Who this is for

Built for childcare and pet care property owners and buyers

For investors who own the real estate and lease it to a childcare or pet care brand.

Get a Quote
1

You're buying with 1031 money

Terms early in your identification window, and a closing scheduled to your deadline.

2

Your bank loan is maturing

Refinance onto a 30 year amortization and a fixed rate.

3

Your tenant extended the lease

More years on the lease can support more loan. Take cash out for the next one.

4

You want the freedom to sell

No prepayment penalty, so you can sell whenever the offer is right.

The process

From first call to closing

01

Tell us about the property

The address, the tenant, and what you want the loan to do. The lease is all it takes to start.

02

See your terms

The loan amount, the rate, and what it takes to close, before you pay for an appraisal.

03

We do the legwork

Appraisal, environmental, title, and insurance get ordered and kept on schedule. On a 1031 purchase, the schedule is built around your closing deadline.

04

Close and fund

Loan documents signed and the loan funded on your closing date.

Ready to move on a property?
Send the lease and the address, and we'll come back with terms quickly.
Get a Quote
Childcare and Pet Care Questions

Frequently asked

How do you finance a childcare center property?+
If you own the real estate and lease it to the childcare operator, the loan is based on the lease: the rent, the guaranty, and the years remaining. Purchase, refinance, and cash out are all available, from $1 million to $30 million, with no prepayment penalty.
Can I get a loan on a KinderCare property?+
Yes. KinderCare is one of the largest childcare operators in the country, and its centers are usually on long corporate leases. The loan is based on the lease and the years remaining.
Can I get a loan on a Pet Paradise property?+
Yes. Pet Paradise resorts are purpose-built for boarding, daycare, and grooming, usually on long corporate leases. The loan is based on the lease and the site.
What if the childcare operator leaves?+
Purpose-built childcare centers usually re-lease to another childcare operator, because the classrooms, restrooms, and playground are already in place. The location and the neighborhood around it are part of the review from the start.
I own and run my own childcare center. Does this work?+
The net lease terms on this page are for buildings leased to national brands. If you own the building and run the center yourself, our Daycare loans are the better fit.
Can I buy a childcare or pet care property with a 1031 exchange?+
Yes. Send the property as soon as it's under contract, and we'll come back with terms early enough to keep your exchange on schedule.
Can I get more than 65% of value, or a smaller loan?+
Yes, through our commercial DSCR loans. They reach up to 75% of value, start at $200,000, need no minimum DSCR on loans under $500,000 and 0.9x above that, and offer terms up to a 30 year fixed. Buildings leased to local businesses fit there too. The tradeoff is that most carry a step-down prepayment instead of none. See our Daycare DSCR loans.
Where does Capituro offer childcare and pet care NNN loans?+
In 35 states: Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Very rural areas within these states may be restricted. Send the address and we'll confirm your property fits.
Get Started

Own or buying a childcare or pet care property? Let's look at the loan.

Send the numbers and the address, and we'll come back with loan terms.

Step 1 of 5

What are you looking to do?

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COMMERCIAL

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REFINANCE

Cash Out Refinance

Take equity out of a property you already own.