What’s New… (also see updates as of 5/5/21 below)

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 3yrs and 21 over 3yrs. 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 and a 2-car garage.

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!

Video #1…
Click here for a picture slide show of this business/property

Video #2…
Click here for a picture slide show of this business/property

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. It looks like too many part-time children were enrolled.

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 this event hadn’t 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!

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 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 family’s commuting routes – perfect to drop off & pick-up children while the parents work or shop.

The business is located 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.