Corporate Guaranty (NYSE: KLC) from the #1 Corporate Operator in the Country
– KinderCare is the largest provider of high-quality early childhood education in the US by center capacity with the ability to serve over 200,000 children across its more than 2,400 centers and sites.
– KinderCare currently operates in over 40 states across the United States.
10+ Years Remaining at a Proven 35-Year Location with Below Market Rents
– KinderCare has over 10 years of remaining lease term with an additional five-year renewal option.
– KinderCare has occupied the property since its original construction in 1991 and has demonstrated a long-term commitment to the location through multiple lease renewals. The tenant’s ongoing commitment is further demonstrated by their recent capital expenditures, including the replacement of the asphalt parking lot in 2022.
– Extremely low in-place rent of just $13.17 PSF provides strong economic incentives for longterm tenant retention and future lease renewal.
– The property is leased on an absolute net basis, providing a truly passive ownership opportunity.
Prime Position Within Cottage Grove’s Dominant Retail Corridor
– Strategically located in the heart of Cottage Grove’s primary commercial district, the property benefits from excellent visibility, convenient access, and traffic counts exceeding 14,900 vehicles per day.
– The property is surrounded by a critical mass of national retailers and daily-need shopping destinations that generate consistent consumer activity and reinforce the location’s longterm viability for childcare operations.
– Cottage Grove is a densely populated and affluent suburban trade area with a 5 mile AHHI of $136,000+, aligning closely with KinderCare’s target customer profile and providing a strong foundation for continued enrollment demand.
Minneapolis – St.Paul, MN MSA – One of the Largest and Most Stable Metropolitan Economies in the Midwest in the Midwest
– The Minneapolis–St. Paul MSA is home to approximately 3.8 million residents and the region continues to attract residents due to its strong employment base, high quality of life, and diverse economy.
– The Twin Cities is home to numerous Fortune 500 headquarters and leading healthcare systems, supporting a large concentration of dual-income households that drive sustained demand for childcare services.
