Brand New 2024 Construction – 20-Year Lease
– 2.00% annual rent increases throughout the base term and option periods.
– The tenant has four, five-year options to renew at the expiration of the 20-year initial term.
– Landlord responsible for replacement of HVAC & roof/structure.
Guidepost Montessori – Largest Montessori in the U.S. with 145+ Locations
– Lease guaranteed by Higher Ground Education (HGE), a corporate school operator with significant
financial backing and an executive team with 20+ years of experience, on average.
– Financial Strength of the Guarantor
– 100% revenue growth year-over-year since 2019
– $600M valuation in October 2022, doubled since February 2021
– Unit level enrollments have increased by 235% since March 2020
Demand For Child Care Remains Extremely Strong
– The U.S. child care market size was valued at USD 60.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.18% from 2023 to 2030.
– The key factor driving the growth is the rising demand for early daycare & education services with more parents returning to working in offices, the rising number of single & working mothers, advancements in learning technologies for children, and the accessibility of government funding.
– The expenditure on daycare in the U.S. is very high. As per the cost of care survey facilitated by the U.S. Department of Health and Human Services, the expenditure on these services reached up to 7% of the household income in 2021.
– Families in the U.S. are willing to spend more on child care services, indicating the high service demand in the U.S.
Internet Resistant Tenant
– Childcare remains a necessity even for parents who can work from home, as the ability to work while also caring for a child under 5 is nearly impossible. Evidence for this is based on the demand continuing to grow vs. pre-COVID despite a marked increase in people working from home.
– Early Education centers remain at the forefront of children’s social skills development.
