10+ Years Remaining with 2.00% Annual Increases in Rent
– Premier Early Childhood Education is 4+ years into a 15-year lease, offering long-term cash flow through September 2036 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 Guaranty from Top 10 Operator in the Country (160+ Locations)
– Premier Early Childhood Education is a Top 10 Corporate childcare companies in the country.
– Premier Early Childhood Education currently operates over 160 locations across seven states.
– 8th largest childcare brand by number of locations with $215 million in 2024 reported annual revenue.
North Atlanta MSA
– Atlanta’s economy is highly diversified, with the metro’s top employers representing a wide variety of sectors.
– With few natural barriers to limit development, tremendous population growth over the past decade expanded the metro’s borders, and the region now has a population of roughly 6.0 million people. Over the next five years the region is expected to add approximately 316,000 residents.
– The urban core has been the epicenter of several major construction projects in recent years, with Centennial Yards headlining urban renewal in downtown Atlanta.
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.
