14+ Years Remaining with 2.00% Annual Increases in Rent
– Kid City USA is less than a year into a 15-year lease, offering long-term cash flow through 2040 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.
Gainesville MSA
– Home to the University of Florida, the Gainesville metro is in north central Florida — right in between Miami and Atlanta — and encompasses Alachua and Gilchrist counties.
– The city of Gainesville is 70 miles southwest of Jacksonville and 115 miles north of Orlando.
– Serves as the cultural, educational and commercial center for the north central Florida region. The University of Florida employs approximately 19,500 individuals, serves over 55,000 students and contributes more than $16 billion to the state economy, making it the largest employer here.
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.
