Child care center real estate financing in Arizona

A.R.S. 36-881, opened on azleg.gov on October 30, 2026, defines a child care facility as a facility in which child care is regularly provided for compensation for five or more children not related to the proprietor. Child care, in that section, is care of a child unaccompanied by a parent, on a regular basis, for periods of less than twenty-four hours a day, in a place other than the child's own home. A.R.S. 36-882(A) says the facility shall not receive a child for care, supervision, or training unless the department of health services has licensed it. Subsection N says the license is not transferable from person to person and is valid only for the quarters occupied at the time of issuance. A buyer of the real estate does not inherit the operator's license. A lender asks for the current license and for what the building is if that operator leaves. This page does not quote a licensing fee. Subsection G allows the department to set fees. The dollar amount is the department's, not ours.

Subsection C requires an initial application to name agricultural landowners when the facility is within one-fourth mile of agricultural land, and subsection D tells the department to deny a license that affects agricultural land regulated under section 3-365 unless the owner agrees in writing to the buffer and records that agreement. That is an Arizona site fact. Confirm the distance with the surveyor and the department. An investor who leases the building to an operator is a commercial lease, discussed as Arizona net lease when the lease is actually net. A practice that occupies the building may ask an SBA lender and a CDC. SBA's 504 overview, opened the same day, says a 504 loan cannot be used for speculation or investment in rental real estate. See Arizona SBA 504. Credit-tenant structure, when that is really the lease, is credit-tenant lease financing.