11+ 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 January 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.
Over $84,000,000 Spent on Education and Daycare in a 5-Mile Radius
– A strong focus on education and early childhood development can make a city more attractive to businesses and skilled workers, contributing to overall economic growth.
– Participants in early childhood programs are more likely to enroll in college and potentially experience higher earnings in adulthood.
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.
