September 26, 2016

Kids “R” Kids childcare facility opens

Kids ‘R’ Kids School of Quality Learning 

Dan and Monika Bertoni sought to own and operate Illinois’ first Kids ‘R’ Kids School of Quality Learning Franchise and become part of a child care organization that has more than 160 locations in 15 states. To get the business off to a great start, they needed to promote a fall enrollment season and open their new facility in mid-August. However, less than a year earlier, they were still seeking the optimal site to build the child care center. A previous relationship with the tenant’s broker led Paragon to this acquisition and development project. Paragon negotiated a land purchase on behalf of the tenant and paid the broker a tenant rep fee, even though they weren’t contractually obligated to do so. Next, Paragon embarked on making the Bertonis’ vision a reality.

Project Objective

Purchase a 2.3-acre agriculture land parcel, rezone it and develop a $4.5 million, 19,000-square-foot childcare facility upon it in Crystal Lake, Ill.

Key Challenges

  • Shortened development and construction schedule—critical opening day set (mid-August) to coincide with fall enrollment/school schedules
  • Quick close on the purchase of the land
  • Expedited formation of design and construction team
  • Groundbreaking in January, which resulted in construction through a tough Chicago winter
  • Adherence to tight construction schedule 

Paragon’s Solutions

  • Accessed available capital for an all-cash purchase and secured bank financing at a later date; the result—closed on land and started construction in less than 60 days
  • Absorbed more than $55,000 in costs to start construction in January 
  • Drew upon expertise, relationships to quickly bring together design and construction team
  • Established a shortened, eight-month construction schedule to ensure completion before opening day

Results

  • Completed facility in July of the same year, one month ahead of schedule
  • Facility received the highest quality award from corporate franchisor, Kids 'R' Kids International®
  • Natural light streams into the center, which is filled with children from infants to 12-year-olds. The facility includes capacity for 225 children, 10 classroom suites, a cafeteria, a resource room, a large activity gym for before and after school students, and four large play areas separated for age groups.