demographics - loopnet...the learning experience (15 -year net lease) 17997 shaw road, cypress, tx...

THE LEARNING EXPERIENCE (15-YEAR NET LEASE)

17997 Shaw Road, Cypress, TX 774297.00% CAP RATE • 2019 CONSTRUCTION • $131,138 AVG HOUSEHOLD INCOME

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Nate Newman, CCIMPrincipalTel: (281) [email protected]: TX 587273, TX 9004564

THE LEARNING EXPERIENCE EXECUTIVE SUMMARY

2N a t e N e w m a n , C C I M n a t e @ n e w m a n k e l l y . c o m ( 2 8 1 ) 7 0 3 - 0 7 1 5

OFFERING SUMMARYOFFERING SUMMARY

Newman Kelly Real Estate Investment Services is pleased to present for sale TheLearning Experience (TLE) in Tomball, TX. The 10,000 square foot building isideally located in the heart of the high income development of Northpointe inthe rapidly growing Tomball / Cypress submarket of Houston. Northpointe hasover 2,500 homes with an average household income exceeding $130,000.

The Learning Experience is ideally located off Shaw Road between anElementary School, Intermediate School, and a High School, making itconvenient for parents to drop their young children off at childcare on their wayto dropping their older children off at school. Additionally, Shaw Road is one ofthe primary north-south thoroughfares connecting to The Grand Parkway.

The center is new construction, having a rent commencement in January 2020.The 15-year lease acts as a natural hedge against protection by boasting 8% rentincreases every 5 years throughout the term, including its two 5-year renewaloptions. This cumulative rent growth is a great benefit to an investor as theirNOI continues to increase over time.

The Learning Experience has over 300 locations across the country with dozensmore being strategically developed at this time. This particular location wasselected due to high existing demand, strong household income, populationdensity, and ongoing demand.

The childcare industry is forecasted to increase revenue at a 3.4% annual rate toan impressive $62.1 Billion industry. Nationwide, over 60% of the 24 millionchildren under the age of six require childcare as demographics continue thelong-standing trend of dual-income households. The Learning Experience hasbeen in the industry for more than 30 years with revenue growing by 210% overthe past 5 years alone.

THE LEARNING EXPERIENCE INVESTMENT OVERVIEW


3 Miles 5 MilesPOPULATION

2024 Projection 61,731 151,927

2019 Estimate 56,938 140,665

2010 Census 42,480 108,348

Growth 2010 - 2019 34.03% 29.83%

INCOMEAverage $131,138 $123,717Median $104,497 $98,827

HOUSEHOLDS2024 Projection 20,736 52,256

2019 Estimate 19,079 48,292

2010 Census 13,972 36,735

Owner Occupied 16,875 (88.45%)

39,574 (81.95%)

RACE & ETHNICITYWhite 81.76% 81.50%

Black 7.49% 7.36%

Asian 7.95% 8.18%

American Indian & Alaskan 0.70% 0.76%

Hawaiian & Pacific Islander 0.05% 0.08%

Other 2.05% 2.12%

DEMOGRAPHICS

OFFERING SUMMARY

Price $3,820,000

Net Operating Income $267,500

Capitalization Rate 7.00%

Price / SF $382.00

Rent / SF $26.75

Lease Type NNN (Landlord Responsible for Roof & Structure)

Gross Leasable Area 10,000 SF

Year Built / Renovated 2019

OFFERING SUMMARYOFFERING SUMMARY

INVESTMENT HIGHLIGHTS

High Income, High Growth Submarket

“Recession-Proof” Fastest Growing Childcare Company in the USA

New Construction with Warranties Transferred to Buyer at Closing

Robust Demographics and High Barriers to Entry

Corporate Guaranty of $500,000 with a Burn-Off of $100,000 Per Year

No State Income Tax

34% Population Growth Rate over last 10 Years

THE LEARNING EXPERIENCE FINANCIAL ANALYSIS


RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT PSF CAP RATE

Year 1 $267,500 $22,292 $26.75 7.00%

Year 2 $267,500 $22,292 $26.75 7.00%

Year 3 $267,500 $22,292 $26.75 7.00%

Year 4 $267,500 $22,292 $26.75 7.00%

Year 5 $267,500 $22,292 $26.75 7.00%

Year 6 $288,900 $24,075 $28.89 7.56%

Year 7 $288,900 $24,075 $28.89 7.56%

Year 8 $288,900 $24,075 $28.89 7.56%

Year 9 $288,900 $24,075 $28.89 7.56%

Year 10 $288,900 $24,075 $28.89 7.56%

Year 11 $312,012 $26,001 $31.20 8.17%

Year 12 $312,012 $26,001 $31.20 8.17%

Year 13 $312,012 $26,001 $31.20 8.17%

Year 14 $312,012 $26,001 $31.20 8.17%

Year 15 $312,012 $26,001 $31.20 8.17%

Year 16 $336,973 $28,081 $33.70 8.82%

Year 17 $336,973 $28,081 $33.70 8.82%

Year 18 $336,973 $28,081 $33.70 8.82%

Year 19 $336,973 $28,081 $33.70 8.82%

Year 20 $336,973 $28,081 $33.70 8.82%

Year 21 $363,931 $30,328 $36.39 9.53%

Year 22 $363,931 $30,328 $36.39 9.53%

Year 23 $363,931 $30,328 $36.39 9.53%

Year 24 $363,931 $30,328 $36.39 9.53%

Year 25 $363,931 $30,328 $36.39 9.53%

1st Option

2nd Option

For more than 30 years, the founders of The Learning Experience®, the Weissmanfamily, have been positively impacting the lives of children by developing andimplementing ground-breaking care and early education programs throughout thecountry. Starting in 1980 with a single location in Boca Raton, FL, the unique andproprietary programs that the Weissmans developed quickly caught on andexpansion soon followed.

The Learning Experience focuses on high-income demographic areas and providesbest-in-class education and childcare. They also provide before and after schoolcare as well as summer camps. There are currently 19 locations in Houston andover 300 locations open or under development nationwide.

MINIMUM OPERATOR REQUIREMENTS

Liquid Capital $150,000

Upfront Costs $60,000 Franchise Fee + $30,000 Development Costs

Total Investment Cost $500,000 - $800,000

MINIMUM DEMOGRAPHIC REQUIREMENTS

3-Mile 5-Mile

Population 30,000+ 75,000+

Children Under 6 Years 3,500+ 5,000+

Average Household Income $75,000+

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THE LEARNING EXPERIENCE TENANT OVERVIEW



ACQUISITION BY GOLDEN GATE CAPITALThe Learning Experience was just purchased by Golden Gate Capital, a SanFrancisco-based private equity investment firm with over $15 billion of capitalunder management.

Golden Gate Capital has a long and successful history of investing in highgrowth, high margin consumer sector businesses such as Red Lobster, EddieBauer, and Express Oil Change.

This new capital infusion will give The Learning Experience greater experienceto execute on their expansion plan, as well as strengthening the companyfinancially.

The Learning Experience has consistently generated double-digit annual growthfor the past 15 years, a remarkable record in the childcare industry thatunderscores that it is a clear leader in the early childhood education sector.

Golden Gate Capital’s acquisition will permit the company to continue to growand develop while remaining focused on the firm’s roots of providing thehighest standards of excellence in academic, physical, and social education toTLE children.

Website: www.goldengatecap.com

http://www.goldengatecap.com/

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With more than 300 locations open, or under development, The Learning Experience has become the Nation’s fastest growing childcare franchise!

ArizonaChandlerEastmarkGilbertGilbert IIGoodyearMesa

CaliforniaAntiochBrentwoodEastvaleLincolnOceansideRedlandsRiversideRocklinRohnert ParkSimi ValleyVacavilleWalnut Creek

ColoradoArvadaAuroraBrightonCentennialFort CollinsLafayetteLittletonLittleton IIReunionThorntonWestminsterWestminster II

ConnecticutCromwellDanburyNew Town

FloridaApopka Boca RatonBoynton BeachBrandonClearwaterCoral SpringsDavieDeerfield BeachFish HawkHeathrowJacksonvilleJacksonville IIJacksonville IIIJacksonville IVJacksonville VLake WorthLakewood RanchMiami BiscayneMiramarMiramar IINew TampaNocateeOdessaOldsmarOrlandoPalm BeachPalm HarborRiverviewSunriseWest Palm BeachWindermere

IllinoisAuroraBacktownBolingbrookCrest HillGurneeLake in the HillsLake Zurich

LemontNapervilleSuaganashSouth ElginWest Loop

MarylandBel AirGambrillsMillersvilleOwings MilsParkvilleWaldorf

MassachusettsAndoverAshlandBillericaChelmsfordDanversFoxboroFranklinHinghamLittletonMarlboroughMilfordShrewsburySouth EastonTewksburyTyngsboroWilmington

MichiganCantonFarmington HillsIndependenceNorthvilleNorthville IINoviShelby South Lyon

Sterling HeightsTroy

MissouriManchesterSt. PetersEllisville

New HampshireMerrimack

New JerseyBasking RidgeBerkeleyBlackwoodBridgewaterCedar GroveCherry HillDenvilleEast BrunswickEast RutherfordEast WindsorEatontownEdisonEnglewood CliffsFranklin LakesHackensackHamiltonHillsboroughHobokenHopewellHowellJacksonLawrencevilleLedgewoodLivingstonLyndhurstManahawkinManalapanManasquanMansfield

MarltonMatawanMiddletownMonmouthMontgomery MontvaleMt. LaurelNorth BergenN. BrunswickN. HaledonOld BridgeParamusParsippanyPiscatawayPrincetonRamseyRiver ValeRoselandSayrevilleSewellSomersetTenaflyTinton FallsToms RiverUnionVoorheesWaldwickWallWarrenWayneWindsorWesthamptonWhippanyWoodbridge

New YorkBayportBaysideBellmoreBellroseBronx

BronxBrooklynBrooklyn IIBrooklyn IIIBrooklyn IVCentereachDeer ParkDobbs FerryEast IslipE. NorthportIslandiaLong IslandManhattanMassapequaMedfordMiddle IslandMonroeMount SinaiNew York CityNorthpointRiverdaleWilmingtonRocky PointRonkonkomaStaten IslandStony BrookYorktown

North CarolinaApexCaryCary IIChapel HillCharlotteCharlotte IICharlotte IIIDurhamFuquay VarinaHolly SpringsHuntersvilleMooresvilleRaleighRaleigh IIStallingsWake Forest

OhioDublinLewis CenterNew Albany

PennsylvaniaAubreyBensalemBethlehem

DowningtownDoyles TownExtonLevittownLimerickMacungieNazarethPhiladelphiaWarminsterWest Chester

Rhode IslandWarwick

South CarolinaTega Cay

TennesseeHendersonvilleMount JulietSpring Hill

TexasAllenAtascocitaAudubonBella TerraBrushy Creek

BudaCastle HillsCedar ParkCoppellCypressDickinsonEldridgeFriscoGeorge TownHickory CreekHumbleHurstHutto GattisKatyKellerKingwoodLeague CityMagnoliaMansfieldManvelMcKinneyMcKinney IIMcKinney IIIMurphyN. Flower MoundN. KatyPearlandPlano

Plano IIRichmondSachseSan MarcosSienna PlantationSpring Spring IISpring IIISugar LandSugar Land IITomballWest University

VirginiaAldieAshburnChantillyGlen AllenManassasRichmond SterlingWoodbridge

WashingtonMill Creek

Subject Property


Oakcrest Intermediate School

Tomball Memorial High School

Wildwood Elementary School

The Learning Experience is located off Shaw Road between an Elementary School, Intermediate School, and a High School. This is an ideal location for childcare because parents can drop their young children off on

their way to dropping their older children off at school during their daily commute to work.

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OFFERING SUMMARY

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OFFERING SUMMARY

The Newman Group 9

LEASE ABSTRACTTAXES: Tenant shall be responsible for all Real Estate Taxes during the term. Tenant shall reimburse the Landlord for Real Estate Taxes on a monthlybasis, by paying to the landlord one twelfth (1/12) of the Landlord’s estimate of Real Estate Taxes for each tax year. Tenant shall pay to Landlord thedifference within thirty (30) days following Tenant’s receipt of Landlord’s Statement. Landlord shall refund any overpayment to Tenantcontemporaneously with such statement.

MAINTENANCE: Landlord, at its sole cost and expense, shall be responsible for the maintenance, repair, and replacement of all the beams, columns,structural portions of the roof, underground utility lines, and the water tightness of the Building. Tenant, at its sole cost and expense, shall keep clean andmaintain in good order, condition and repair and replace the Leased Premises and every part thereof, except as specified as Landlord’s responsibility.Including, without limitation, the Building front and exterior portions of all doors, windows, and plate glass surrounding the Leased Premises, all plumbingwithin the Building, fixtures and interior walls, floors, systems, interior building appliances, air conditioning and heating units and systems, and shallrefurbish, and remodel the Leased Premises and any part and portion thereof from time to time to assure that the same are kept in first class, tenantableand attractive condition through the Term.

NOTE TO PURCHASER: The Property is new construction and includes a new 20-Year Warranty for the roof. There are additional warrantiesfor the other construction items. All warranties will be transferred to the buyer upon closing.

INSURANCE: During the Term, Tenant, at its sole cost and expense, shall obtain and maintain with reputable insurance companies licensed in theState, the following policies of insurance: Special Form Cause of Loss; Commercial General Liability; and All Risk insurance.

CORPORATE GUARANTY: The Guaranty of Rent shall be limited to a maximum of $500,000 in the aggregate. The aggregate amount shall bereduced by $100,000 each anniversary of the Rent Commencement Date.


INVESTMENT OVERVIEW

10The Newman Group 10

N a t e N e w m a n , C C I M n a t e @ n e w m a n k e l l y . c o m ( 2 8 1 ) 7 0 3 - 0 7 1 5

THE LEARNING EXPERIENCE PHOTO


17997 Shaw Road, Cypress, TX 77429

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THE LEARNING EXPERIENCE MAP


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The Learning Experience is located in the Northpointe Community of Tomball / Cypress, one of the most rapidlygrowing submarkets in Houston. Population growth has been over 34% for the past 10 years in the surrounding areawith average household income exceeding $131,000.

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THE LEARNING EXPERIENCE – LEAGUE CITY, TX

LOCAL MAPTHE LEARNING EXPERIENCE LOCAL MAP


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THE LEARNING EXPERIENCE – LEAGUE CITY, TX

LOCAL MAPTHE LEARNING EXPERIENCE SITE PLAN


C O N F I D E N T I A L I T Y A N D D I S C L A I M E R

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by theparty receiving it from and should not be made available to any other person or entity without the written consent of Newman Kelly. ThisMarketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only apreliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligenceinvestigation. Newman Kelly and/or Nathan T. Newman have not made any investigation, and makes no warranty or representation, with respectto the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federalregulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant'splans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtainedfrom sources we believe to be reliable; however, Newman Kelly and Nathan T. Newman have not verified, and will not verify, any of theinformation contained herein, nor has Newman Kelly or Nathan T. Newman conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefullyreview all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is animportant consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructedfacilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparablerents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail tocomply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or otherconditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all mattersaffecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if thecurrent tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacementtenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this MarketingBrochure you agree to release Newman Kelley Real Estate Investment Services and Nathan T. Newman and hold it harmless from any kind ofclaim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT AGENT FOR MORE DETAILS.

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INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS:• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or propertymanagement agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction knownby the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agentmust perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosedto the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The writtenagreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly;• May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,

and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:

that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not representthe buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Pleaseacknowledge receipt of this notice below and retain a copy for your records.

Information available at www.trec.texas.govRegulated by the Texas Real Estate CommissionIABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date16

demographics - loopnet...the learning experience (15 -year net lease) 17997 shaw road, cypress, tx...

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