12+ Years Remaining with 2.00% Annual Increases in Rent
– Kid City USA is 3+ years into a 15-year lease, offering long-term cash flow through December 2037 with two, five-year extension options immediately following the Base Term.
– The lease is absolute net in nature, leaving the Landlord zero obligations with Tenant responsible for all maintenance, repair and replacement of the to the property.
– 2.00% annual rental increases provide contractual rent growth for the remainder of the base lease term and the two, five-year option periods.
Corporate (140+ Locations) and Personal Guaranty in Place
– Kid City USA currently operates over 140 locations across twelve states.
– Kid City USA landlord’s benefit from not only a corporate guaranty, but also a personal guaranty from the founder and CEO of the company Audrey Bruner.
Evansville MSA – 3rd Largest City in Indiana
– Evansville is the third-largest city in Indiana. Evansville is the social and economic hub for our region, which includes Southwest Indiana, Southeast Illinois and Northwest Kentucky.
– The Ohio River traverses the region, providing a border between the two states. The metro is home to the Port of Evansville, which expedites the movement of cargo from barge to rail and truck.
– Major industries in the area include health care, finance, education and manufacturing. Among the companies headquartered in the metro are Atlas Van Lines, Koch Enterprises, OneMain Financial and Berry Global. University of Southern Indiana is also one of the city’s leading employers.
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.
