Buy a Day Care Center in Aurora, CO

The Aurora Child Care Market

Aurora is one of Colorado's fastest-growing cities, with 390,000 residents and a median household income of $84,320. That combination of population density and dual-income households creates consistent, high demand for licensed child care.

Colorado has one of the country's most chronic child care shortages. The state has lost hundreds of licensed providers since 2020, which means established centers with existing enrollment carry real acquisition value. You are not buying a startup. You are buying a functioning operation with a waitlist, trained staff, and a state license already in place.

That said, this is a licensed, regulated industry. The buyer must meet Colorado's Office of Early Childhood licensing requirements, which includes background checks, facility standards, and, in some cases, director qualifications. Plan for a licensing transfer as part of the close process. It adds time, typically 30 to 60 days depending on the center's license type.

How Much Does a Day Care Center Cost in Aurora?

National listing data shows a wide price range: $60,000 on the low end to just under $11M for larger multi-site operations. Most buyers working with SBA financing should focus on the $300,000 to $2M range, where deal volume is highest and lender appetite is strongest.

Aurora-specific inventory is limited, but Colorado's major metro markets tend to track national averages closely. Expect to pay a premium for centers that are fully licensed, fully enrolled, and operating without owner-dependency.

Here is how the deal math looks on a median-priced center, as of Q1 2026:

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

The 2.1x DSCR is solid. That gives you meaningful cushion above the 1.5x floor and room to absorb a temporary enrollment dip without going underwater on debt service.

Can You Get SBA Financing to Buy a Day Care Center in Aurora?

Yes, and child care is one of the better SBA acquisition categories. These businesses have recurring tuition revenue, low customer concentration (no single family represents more than a few percent of revenue), and predictable staffing models. Lenders understand the cash flow profile.

Regalis Capital's acquisition data shows the standard structure on child care deals runs 80% SBA loan / 15% seller note on full standby at 0% interest / 5% buyer cash equity injection. The seller note acts as equity in the deal, which means you are deploying roughly 5% cash out of pocket to control the entire acquisition.

On a $739,000 deal, that is approximately $37,000 in cash out of pocket. The seller note of roughly $111,000 sits on full standby with no payments during the SBA loan term.

One lender consideration: real estate. If the center operates from a leased facility, the lender will want a lease term that extends well past the SBA loan maturity. A 10-year SBA loan on a facility with a 2-year lease remaining is a problem. Make sure the lease situation is clean before you get deep into underwriting.

What to Look For When Buying a Day Care Center

Licensed capacity versus actual enrollment. A center licensed for 80 children running at 55 has room to grow, but it also means current revenue is not maximized. Understand why. Is it a staffing constraint, a marketing problem, or a structural issue with the facility?

Colorado's child-to-staff ratios are set by state regulation. If the center is at licensed capacity but is also at the legal staffing limit, any enrollment growth requires hiring first.

Tuition rate benchmarking. Aurora's market rates for infant care run $1,800 to $2,400 per month. Toddler and preschool rates are lower. If the center's rates are significantly below market, that is margin sitting on the table. If they are above market, understand what justifies the premium.

CCCAP participation. Colorado Child Care Assistance Program (CCCAP) subsidizes tuition for qualifying families. Centers that participate see more stable enrollment but deal with state reimbursement rates that are typically below private-pay tuition. Know the revenue mix before you close.

Staff tenure. Child care has high turnover nationally. A center where key lead teachers have been employed for 3 to 5 years is worth more than one constantly rebuilding its classroom teams. Ask for an employee tenure report as part of due diligence.

Director qualifications. Colorado requires licensed centers to have a qualified director on staff. If that person is the seller and they are leaving at close, you either need to qualify yourself or hire a replacement before the license transfer completes.

Frequently Asked Questions

How much does it cost to buy a day care center in Aurora, Colorado?

Based on national market data as of Q1 2026, the median asking price for a day care center is $739,000. Smaller owner-operated centers start around $60,000, while multi-site operations can exceed $5M. Aurora pricing tracks closely with national averages given the metro's size and demand profile.

What cash flow can I expect from a day care center acquisition?

The national median cash flow for listed day care centers is $198,154 per year. That figure is typically reported as SDE, which is broker-friendly and may include add-backs that do not reflect actual post-acquisition cash flow. Apply a 15% to 30% discount to SDE when building your debt service model to be conservative.

How does SBA financing work for a day care center purchase?

SBA 7(a) loans cover up to 90% of the acquisition price over a 10-year term at approximately 10% to 11% based on current rates. The 10% equity injection is typically structured as 5% buyer cash plus a 5% seller note on full standby acting as equity. On a $739,000 deal, that means roughly $37,000 in cash out of pocket.

What licenses are required to own a day care center in Colorado?

Colorado requires a facility license from the Office of Early Childhood for any center caring for five or more children. The license is tied to the facility and the director of record. Ownership transfers require a new license application or a change-of-ownership approval, which typically takes 30 to 60 days. Budget for this in your close timeline.

What is a reasonable DSCR for a day care center acquisition?

Regalis Capital's deal team targets a 2x debt service coverage ratio on acquisitions, with a floor of 1.5x when synergies are documented. A center at median asking price and cash flow produces roughly a 2.1x DSCR under standard SBA terms, which is a workable starting point for most lenders.

Ready to Run the Numbers on an Aurora Day Care Acquisition?

If you are seriously considering buying a day care center in Aurora or anywhere in Colorado, Regalis Capital's deal team can help you identify viable targets, pressure-test the financials, and structure a deal that actually works at the lender level.

We review 120 to 150 deals per week. We know what child care lenders want to see and where most first-time buyers get tripped up on licensing transfers and lease structures.

Start with a free deal assessment at Regalis Capital.