Location:

• Fantastic Demographics:  The 3-mile demographics have an average household income of more than $100,000 with an average growth rate of over 2% annually. 
• Wealthy Suburb of Charlotte, NC:  Charlotte, NC is a top 25 MSA, larger than Austin, TX; Las Vegas, NV; and Nashville, TN.  Charlotte also has seen a larger percentage increase of population growth than Miami, FL; Tampa, FL; and Phoenix, AZ since 2020.
• New Residential Developments:  In the immediate vicinity there are multiple new construction multifamily and townhomes that have been built.  More than 50% of the homes in the 3-mile radius were built after 2020.
• Strong Consumer Spending:  In the 3-mile radius, households spend almost $35MM on education and daycare showing a strong consumer for early education centers and over $100MM for households in the 5-mile radius.  The U.S. childcare market reached $59.87B in 2023 and is projected to grow to $73B by 2030 (source: Towards Healthcare), reinforcing the long-term viability of the tenant’s business model.

Tenant:

• The Second Largest Daycare Provider:  Childtime Learning Centers is a well-established brand under the Learning Care Group (LCG) umbrella, which ranks as the second-largest childcare provider in the United States.
• Experienced Operator:  With a portfolio of over ±1,100 locations across the country, LCG brings institutional-level operational sophistication and brand recognition. Their presence ensures strong tenant credit, operational stability, and broad industry experience.
• Dedication to the Location:  The tenant has operated at the site for 15+ years and recently executed a new 10-year lease extension showing their long-term commitment to the location.

Property:

• Recent Renovations:  The tenant is deploying $100,000 into the property indicating long-term commitment to the location.
• Below Replacement Cost:  The average daycare on market with 10+ year on the lease is priced above $4MM, this property is priced less than half.  In fact, some daycare assets are priced well $7MM, more than 3X the price of this asset.
• Long-Term Lease, Annual Increases:  The tenant just executed a new long-term lease at the site with annual increases throughout the base term and the options.