CAP RATE: 6.50%
BUILDING SIZE: 10,000 Sq Ft
YEAR BUILT: 2023
LOT SIZE: +/- 1.00 Acres
- Brand New 2023 Construction – 15-Year Lease – The Learning Experience (TLE) signed a 15-year lease at the subject property which is currently under construction. The lease has minimal landlord responsibilities and bodes 12.00% increases in rent every five years. In addition to the 15-year base lease term, the tenant has two, five-year options to renew. As part of the lease, TLE agreed to a modified guaranty structure, which specifies an above average burn off of $800,000 over eight-years, opposed to the typical $500,000 over five-years.
- The Learning Experience – The Nation’s Fastest Growing Childcare Franchise – TLE pursues growth, in existing and new markets, by establishing both Franchise and Corporate-owned sites in each major metro market. Once identifying a market, TLE establishes franchised sites in the surrounding suburban areas. TLE is currently on a trajectory to open 75-100 Centers per year.
- Located in the Nashville MSA – Known as the epicenter of country music, the Nashville metro contains a population of about two million within 14 counties. Davidson is the most populous county, with 711,000 people, and is home to Nashville, the capital city, which has 689,000 residents. The population will increase at a faster pace than the nation over the next five years. The metro is well known as a central location for the country music industry, which provides many local jobs and supports a large hospitality sector. Other major industries in the metro include health care, government, automotive manufacturing, publishing, insurance and finance.
- Demand for Child Care Remains Extremely Strong – The early education and daycare segment dominated the U.S. child care market and accounted for the largest revenue share in 2019. This is owing to an increasing number of daycare and early education centers in the country. The demand for early education is growing rapidly as around 1.4 million and 3.7 million students were enrolled in prekindergarten and kindergarten respectively in 2019. The key factors driving the U.S. child care market growth include increasing government funding for childcare, rising demand for daycare centers; and an increase in the number of women employed.