Licensed Preschool Business & Real Estate Offering

1680 Patricia Ave, Simi Valley, CA 93065
Offered at $2,700,000 | Licensed for 90 Children | Zoned RH – Residential High Density

This is a rare opportunity to acquire both a long-established, licensed preschool and the underlying real estate in one of Ventura County’s most desirable, land-constrained residential markets. With over two decades of community presence, the school has operated with a strong reputation, serving children across multiple age groups. The real estate is equally compelling: a flat, 0.44-acre parcel zoned RH (Residential High Density), offering immediate utility and long-term redevelopment potential for up to 9 units by right, or more via California’s Density Bonus Law.

Offering Highlights

• Fully Licensed Preschool for 90 children across infant, preschool, and school-age programs

• Real Estate Included: 2,961 SF single-story building on a 19,166 SF lot (0.44 acres)

• RH Zoning: Residential High Density allows 10.1–20 DU/acre (4–9 units by right, 12+ w/ density bonus)

• Operating History: 20+ years serving local families under the same ownership

• Flat Parcel, Utilities On-Site: Minimal sitework needed for development or expansion

• On-Site Parking and gated playground areas

• Interim Income Opportunity: Continue to operate or lease the facility during entitlement for redevelopment

• Located in a High-Demand Corridor: Surrounded by strong demographics, walkable neighborhoods, and new residential development

Financial Summary (2025 YTD)

• Total Revenue: $450,901

• Addbacks: $72,880 (rent paid to ownership) + $31,000 (owner salary)

• Estimated SDE: ~$135,000

• Real Estate Market Value: Supported at $1.6M–$1.8M by appraisal and development analysis

• Business Value Justification: 2.5–3.0x SDE = $340K–$405K range (based on current cash flow)

• Combo Value Range (Realistic for SBA Lending): $2.0M–$2.2M under current operations

Redevelopment Potential – RH Zoned Parcel

• 4–9 Units By Right under 10.1–20 DU/acre density range

• Up to 12 Units possible via Density Bonus Law (Gov. Code §65915) by offering 1–2 affordable units

• Sale Comp Ranges: $800K–$900K/unit for townhomes in this submarket

• Developer Pro Forma (9 Units): ~$7.2M revenue | ~$6M total cost | 19.1% margin | 21% IRR

Developers may choose to demolish, re-tenant, or operate the preschool during entitlement. There are precedent redevelopments on neighboring parcels under similar zoning and lot size.

Buyer Profile Fit

This deal is ideal for:

• Experienced Preschool Operators looking for a value-add turnaround and real estate ownership

• Owner-Users who want to build equity while operating

• Real Estate Investors seeking RH infill parcels with interim income

• Developers looking for 4–12 unit opportunities in a builder-friendly city with strong comps and minimal land inventory

Closing Structure & Path Forward

• SBA 7(a) eligible with proper down payment and operating experience

• Seller is motivated to transact with a qualified buyer who understands the value of both components

• Appraisals and underwriting will be based on actual income and real estate comparables—pricing must align with both to close