3 property single-tenant nnn childcare · 3 property single-tenant . nnn childcare portfolio....

3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO

BEAVERTON

HILLSBORO

EXCLUSIVELY LISTED BY

GRESHAM

RYAN O'LEARY

[email protected]

REBECCA LIDDELL, CCIM, MAI

[email protected]

NNNPDX.com

www.nnnpdx.com

23 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS

01INVESTMENT

SUMMARY

THE OFFERING

The offering presents three net leased childcare properties in the Portland metro area, providing investors the opportunity to acquire desirable West Coast investment properties with a stable, Amazon- proof tenant.

The properties were originally constructed in the mid-1980’s as build-to-suit Kindercare childcare locations. In 2011, the Beaverton and Hillsboro businesses underwent

INVESTMENT SUMMARY

new ownership, under Kids Incorporated Learning Centers, and in 2015 expanded to include the Gresham location.

All leases are NNN, with Landlord responsible for structure and roof. All three properties underwent very recent improvements, including roof, parking lot, siding, awnings, and more! Tenant pays all other expenses directly, including property taxes, insurance, repairs/maintenance and utilities.

$3,741,000 PORTFOLIO PRICE

7.88% CAP RATE

3 # OF LOCATIONS

$208 PRICE / SF

100% OCCUPANCY

NNN LEASE TYPE

$294,965 TOTAL NOI

6,000 AVERAGE SIZE (SF)

INDIVIDUAL PROPERTY PRICING

Cap Rate Price

Beaverton Kids Incorporated 7.00% $1,520,000

Hillsboro Care a Lot 7.00% $1,447,000

Gresham Kids Incorporated 8.00% $1,028,000

Total Individual Pricing 7.38% $3,995,000

Discounted Portfolio Pricing 7.88% $3,741,000

3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 3

PORTFOLIO HIGHLIGHTS

KIDS INCORPORATED

KIDS INCORPORATED

CARE A LOTCHILDCARE GRESHAMBEAVERTON

PORTLAND

HILLSBORO

N


INVESTMENT HIGHLIGHTS

FULLY LEASED three location childcare portfolio in the greater Portland, OR MSA area. The properties can be purchased as a portfolio or individually.

RECENT CAPITAL IMPROVEMENT project completed to each property by Joseph Hughes Construction include new roofs, parking lots, siding, awnings, and more as needed.

SERVICE-ORIENTED, E-COMMERCE PROOF tenant.

FLEXIBILITY OF OWNERSHIP childcare properties are purchased by owner-operators approximately 50% of the time in the Portland metro market at market pricing, hedging investor’s risk.

ALL THREE LOCATIONS currently at or near enrollment capacity and forecasted to stay full. The Hillsboro location consistantly has a waiting list.

NNN LEASE STRUCTURE; landlord only responsible for roof and structure. Tenant pays all other charges directly.

DEMOGRAPHICS reflect high population density for both owner-occupied an renter-occupied housing.


2019 CAPITAL IMPROVEMENTS ALL THREE PROPERTIES

underwent over $200K in recent improvements including siding repair, new paint, newly paved parking area with restriping, and landscaping

RE-SECURED fencing around play area

CLEANED

crack-filled and seal coated front lot and play area

BEAVERTON $60,480 in recent capital improvements

HILLSBORO $70,724 in recent capital improvements

GRESHAM $73,181 in recent capital improvements

GRESHAM LOCATION received a new roof within the last 5 years, as well as new interior flooring in 2019

NEW ROOFING to Hillsboro and Beaverton locations in 2019 Transferable Roof Warranties



02ABOUT THE

TENANT


3

LOCATIONS

95%

AVERAGE ENROLLMENT

351

TOTAL CAPACITY LICENSED

NNN

TENANT PAYS ALL TAXES, UTILITIES, INSURANCE, R&M

“Kids Incorporated Learning Centers understand that you only get one childhood, and we plan to make it the best childhood possible.

”

ABOUT THE TENANT

Kids Incorporated Learning Centers have been serving the community for nearly 10 years under the philosophy of bringing the highest quality of care to parents at the most affordable costs.

Starting in 2011, Mistee Thomas opened Care A Lot Childcare in Hillsboro, and Kids Incorporated

Learning Center in Beaverton, Oregon. Due to the tremendous success in both locations, Ms. Thomas expanded her operations to include the Gresham location in 2015. The business has a family-centric model. Mistee's two daughters are general managers, raising their own children in the program. Tenant financials will be made available to qualified investors.

ABOUT THE TENANT


03PROPERTY

OVERVIEWS

KIDS INCORPORATED - BEAVERTON

14,625 PER DAY

33

,26

0

PE

R D

AY

NW WALKER RD

NW

18

5T

H A

VE

121 KIDSLICENSE CAPACITY

5% / YRRENT ESCALATIONS THRU 2021

$106,376NET OPERATING INCOME

Address18425 NW Walker Rd Beaverton, OR

Asking Price $1,520,000

Price/SF $253

Net Operating Income $106,376

Annual Rent/SF $17.73

Rent Escalations5% / Year thru Oct 2021 3.14% annual average thru remainder of term

Cap Rate 7.00%

Tenant Since 2011

Current Term Expiration Oct 31, 2027

# Lease Years Remaining 8

Net Leasable Area (NLA) 6,000

Site Size 0.68 Acres

Year Built 1984

Parking Ratio 3.83 / 1,000 SF

RENT SCHEDULE

Rent Thru Monthly Rent Annual RentAnnual Increase

Oct 2020 $8,864.67 $106,376.04 5.00%

Oct 2021 $9,307.90 $111,694.80 5.00%

Oct 2022 $9,555.00 $114,660.00 2.65%

Oct 2023 $9,805.00 $117,660.00 2.62%

Oct 2024 $10,055.00 $120,660.00 2.55%

Oct 2025 $10,305.00 $123,660.00 2.49%

Oct 2026 $10,550.00 $126,600.00 2.38%

Oct 2027 $10,805.00 $129,660.00 2.42%

Annual Average 3.14%


KIDS INCORPORATED - BEAVERTON



REGIONAL MAP

JANTZEN BEACH SHOPPING

CENTER

LLOYD CENTER

MALL

STREETS OF TANASBORNE

PORTLAND JAPANESE GARDEN

WASHINGTON SQUARE MALL

COLUMBIA RIVER

WILLAMETTE RIVER

LAKE OSWEGO

MILWAUKIE

TIGARD

PORTLAND

BEAVERTON

SUBJECT PROPERTY

DEMOGRAPHICS

1 Mile 3 Miles 5 Miles

Population 15,338 67,506 132,827

Households 6,513 26,742 51,022

Families 3,634 16,980 33,580

Average Household Size 2.32 2.51 2.59

Owner Occupied Housing Units

2,624 13,447 28,435

Renter Occupied Housing Units

3,889 13,295 22,587

Median Age 32.6 32.4 33.1

1 M

ILE

3 MIL

ES

5 MIL

ES

BEAVERTON NEIGHBORHOOD AERIAL

N

SUBJECT PROPERTY

SUNSET SQUARE

THE STREETS OF TANASBOURNE

NE WALKER RD

NE CORNELL RD

NE

18

5T

H A

VE

NE

ST

UC

KI

AV

E

NE

AM

BE

RG

LE

N A

VE

TANASBOURNE TOWN CENTER

30

,15

2

Da

ily

15,156 Daily

TANASBOURNE VILLAGE

11 MI Portland


CARE A LOT CHILDCARE - HILLSBORO

29,300 PER DAY

10

,40

5

PE

R D

AY

SE TUALATIN VALLEY HWY

SE

MIN

TE

R B

RID

GE

RD

Address1771 SE Minter Bridge RdHillsboro, OR


Price/SF $241

Net Operating Income$106,389 increasing to $111,708 in Feb 2020


Rent Escalations5%/Year thru Jan 2021 3.14% annual average thru remainder of term

Cap Rate 7.00%

Tenant Since 2011

Current Term Expiration Jan 31, 2027

# Lease Years Remaining 7+


Site Size 0.80 Acres

Year Built 1984


AT CAPACITY WITH WAITING LIST.

RENT SCHEDULE


Jan 2020 $8,865.78 $106,389.36 5.00%

Jan 2021 $9,309.07 $111,708.84 5.00%

Jan 2022 $9,555.00 $114,660.00 2.64%

Jan 2023 $9,805.00 $117,660.00 2.62%

Jan 2024 $10,055.00 $120,660.00 2.55%

Jan 2025 $10,305.00 $123,660.00 2.49%

Jan 2026 $10,550.00 $126,600.00 2.38%

Jan 2027 $10,805.00 $129,660.00 2.42%



5% / YRRENT ESCALATIONS THRU 2021



CARE A LOT CHILDCARE - HILLSBORO


REGIONAL MAP


CENTER

STREETS OF TANASBORNE


WASHINGTON SQUARE MALL

WILLAMETTE RIVER

LAKE OSWEGO

PORTLAND

BEAVERTON

HILLSBORO

DEMOGRAPHICS


Population 15,338 67,506 132,827

Households 6,513 26,742 51,022

Families 3,634 16,980 33,580


Owner Occupied Housing Units 2,624 13,447 28,435

Renter Occupied Housing Units 3,889 13,295 22,587

Median Age 32.6 32.4 33.1

SUBJECT PROPERTY

HILLSBORO AIRPORT

1 M

ILE

3 MILES

5 MILES


HILLSBORO NEIGHBORHOOD AERIAL

N

SUNSET ESPLANADE

HILLSBORO TOWN CENTER

SUBJECT PROPERTY

SE TUALATIN VALLEY HWY

SE CYPRESS ST

SE

32

ND

AV

E

SE

MIN

TE

R B

RID

GE

RD

28,559 Daily

10

,30

4 D

aily

20 MI Portland



KIDS INCORPORATED - GRESHAM

32

,90

2

PE

R D

AY

NE

18

1S

T A

VE

NE PACIFIC CT

Address840 NE 181st Ave Gresham, OR


Price/SF $171

Net Operating Income$82,200Increasing to $85,920 in Feb 2020


Rent Escalations 4.49%/Yr (average)

Cap Rate 8.00%

Tenant Since 2015

Current Term Expiration Feb 15, 2023

# Lease Years Remaining 3+


Site Size 1.00 Acre

Year Built 1985


RENT SCHEDULE


Feb 2020 $6,850.00 $82,200.00 4.50%

Feb 2021 $7,160.00 $85,920.00 4.53%

Feb 2022 $7,480.00 $89,760.00 4.47%

Feb 2023 $7,815.00 $93,780.00 4.48%



4.49% / YRRENT ESCALATIONS THRU 2023


OPPORTUNITYZONE


KIDS INCORPORATED - GRESHAM

REGIONAL MAP

DEMOGRAPHICS


Population 21,758 64,659 126,401

Households 7,464 23,510 46,472

Families 4,926 15,164 30,184


Owner Occupied Housing Units 3,041 11,833 24,725

Renter Occupied Housing Units 4,423 11,677 21,747

Median Age 31.4 33.5 34.4


CENTER


LLOYD CENTER

MALL

COLUMBIA RIVER

WILLAMETTE RIVER

MILWAUKIE

PORTLAND

GRESHAM

SUBJECT PROPERTY

1 M

ILE

3 MILES

5 MILES



GRESHAM NEIGHBORHOOD AERIAL

N

SUBJECT PROPERTY

HALSEY CROSSING

H.B. LEE MIDDLE SCHOOL

HARTLEY ELEMENTARY

SCHOOL

30

,94

8

Da

ily

18,733 Daily

13.6 MI Portland

PORTLAND RANKINGS

#1 BEST PLACES FOR BUSINESS & CAREERS − FORBES.COM

#1 ENERGY INFASTRUCTURE− US NEWS, 2018

#1 IN US FOR PUBLIC PARK SPENDING − TRUST FOR PUBLIC LAND, 2018

#1 BEST FOODIE CITY IN AMERICA − TRUST FOR PUBLICLAND, 2018

#1 SAFEST PLACE TO LIVE − RENTAL HOUSING JOURNAL, 2017

#2 MOVING DESTINATION OF 2018 − UNITED VAN LINES, 2019


INVESTING IN PORTLANDULI 2018 Investment Prospects ranks Portland #2 in the Pacific region

IN 2018, at 5.2% Oregon personal income growth was above the national average of 4.1%

PORTLAND ranked #6 on Business Insider's Top 50 Best Places to Live in 2018

PORTLAND MSA multifamily vacancy is below 4.85%

PORTLAND MSA is the 8th strongest rental market in the nation, per Axiometrics

PORTLAND’S current unemployment rate is 3.6%, a 42 year low

GROWING POPULATIONOREGON was the #2 moving destination in 2018 for people moving from one state to another, according to a United Van Lines Study

PORTLAND has added 42,000 residents over the last three years, an increase of 1.7%; above national average

PORTLAND ranked 19th in the nation in population growth ahead of San Francisco, Boston, and New York City

MORE than 34% of Portland residents have a bachelor's degree or higher, above the national average of 28%

PORTLAND MSA employment is at an all-time high, employing ±1,190,400 workers

EMPLOYMENTPortland has the the 15th fastest growth rate of the nation's largest metro areas, at an increase of 2.4% every three months

Portland MSA is expected to add 25,500 additional jobs in 2018

Amazon is projected to add more than 2,000 new jobs after breaking ground for new fulfillment centers in North Portland and Troutdale

Event software company Cvent plans to hire 1,000 new employees through 2019 as part of a massive expansion

Oregon Health & Science University is projected to add 500+ jobs


KIDDER.COM

EXCLUSIVELY REPRESENTED BY

REBECCA LIDDELL, CCIM, MAI

[email protected]

RYAN O'LEARY

[email protected]

3 property single-tenant nnn childcare · 3 property single-tenant . nnn childcare portfolio....

Documents