Challenges

Scalability

Location

California, Colorado, Nevada

Stakeholders

Businesses, Nonprofits

Beneficiaries

Job Seekers, Childcare Providers

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Overview

The CARE Investment Trust, founded in 2023, aims to address the childcare crisis by providing affordable properties for childcare providers. After two years, tenants can buy the properties. It operates as a social impact REIT and plans to become a public REIT to enhance childcare investment.

Key Impact Metrics

  • 22
    childcare properties in the portfolio
  • 3
    states in operation
  • 96
    childcare slots created

Problem

Many communities lack facilities for childcare expansion. Existing providers often lease in suboptimal spaces or face high rents. Without owning affordable real estate, most quality childcare centers cannot scale.

Solution

The CARE Investment Trust, operated by Mission Driven Finance, was created in 2023 to address the childcare crisis by leveraging real estate as a tool for social change. The initiative acquires, renovates, and leases properties at affordable rates to childcare providers, creating stable, high-quality childcare hubs while fostering wealth-building opportunities for providers. CARE provides childcare provider tenants with the opportunity to purchase the property after two years. CARE operates as a social impact Real Estate Investment Trust (REIT) with a long-term goal of becoming a public REIT to drive massive investment into childcare.

Results

  • Beneficiary Impact96 childcare slots served, with a potential to increase to 268
  • Employee Impact18 childcare service provider tenants
  • Financial Results63% of CARE’s childcare tenants report earning more income now than they did before moving into a CARE property

Replication Tips

  • Partner for funding: Collaborate with early childhood state agencies and financial institutions to access grants, tax credits, or subsidized financing.
  • Location prioritization: Target acquisitions strategically in childcare deserts or underserved neighborhoods identified through thorough market analyses.
  • Technical assistance: Provide ongoing business management training for childcare providers leasing properties to maximize operational effectiveness and financial stability.

Suggested Implementation Timeline

~14–20 months

Sources