The Exchange
Working with JJ Gorena, Stoytcho and Mila identified and closed on two daycare properties as part of their exchange, moving their investment into a property type with steady, in-demand tenancy.
The first, at 13118 El Sendero St in San Antonio, is a 4,800-square-foot daycare property currently leased to Little Treehouse Early Learning Academy, an established operator running since 2021 with four locations. The lease is structured as an NNN (triple-net) lease with a personal guarantee from the operator — meaning the tenant covers most of the property's operating expenses, including utilities, insurance, and landscaping, while Stoytcho and Mila collect steady, largely passive income as the landlord.
The second property, 1271 Oak St in Schertz, is a longtime daycare location — most recently operated as Mary's Little Lambs for over two decades — that is currently whiteboxed and available for a new tenant, listed as an owner-user opportunity with seller financing on the table.
"We were investing from out of state, which made the timeline feel even more stressful at first. JJ walked us through exactly what needed to happen and when, and helped us find two daycare properties that fit what we were looking for. Having one of them ready to lease already has been a great outcome for us." — Stoytcho and Mila
Why This Property Type Works for a 1031 Exchange
Daycare and childcare-use properties are a common target for 1031 investors because they combine steady local demand with a use case that rarely sits vacant for long in growing residential areas. San Antonio's 78233 corridor and Schertz's growth along the I-35 corridor and FM 1103 expansion both reflect the kind of population growth that keeps childcare demand strong — one supporting an already-stabilized, income-producing asset, the other offering room for a new operator to move in.
For investors thinking through a similar move, this is exactly the scenario JJ Gorena walks through in Episode 1 of his exchange series: identifying multiple replacement properties within the 45-day window, whether that means staying in one property type or, as in this case, building a small portfolio around a specific, in-demand use.
The Opportunity Right Now
The Schertz property is currently whiteboxed and available — meaning a new business, whether another childcare operator or a different service-based tenant, can move into a space with an established commercial history and strong local visibility. For investors watching this story and wondering what a similar 1031 exchange could look like, this is a live example of exactly that outcome.
Getting Started
If you own investment property and expect to sell within the next year, the right time to start planning a 1031 exchange is now, not after you've accepted an offer. Watch Episode 1 of "1031 Exchange, Explained" for a full walkthrough of the identification period.
Watch Episode 1 of "1031 Exchange, Explained": https://youtu.be/Kmbth-XiI50
Schedule a consultation with JJ Gorena: https://calendly.com/treygroupcommercial/15min
Email: Commercial@thetreygroup.com
