Kid s Country Learning Center - PDF Free Download

Kid s Country Learning Center AUBURN, WASHINGTON

A TOP PERFORMING LOCATION IN THE PUGET SOUND WITH EXCELLENT VISIBILITY

Overview Kid s Country Learning Center 101 10TH ST NE, AUBURN, WA 98002

PAGE 5 Investment Summary LEASEABLE SF 9,080 SF LAND AREA 43,431 SF LEASE TYPE Absolute NNN TERM REMAINING 9 Years YEAR BUILT 1999 PARKING 30 Spaces; 3.3/1,000 SF $5,290,000 PRICE 6.00% CAP THE OFFERING provides an opportunity to acquire a freestanding 9,080 square foot, Kid s Country Learning Center in Auburn, Washington. Kid s Country has a 20-year tenure at the Property and nine years remaining on their current term, operated and backed by a privately owned, highly successful education company, Pansophic Learning, a subsidiary of Safanad Education and Safanad Limited, an international private equity company. The densely populated area creates healthy demand for the specific use and the prominent and accessible location sits sandwiched between a Lowe s and Fred Meyer within one mile of multiple major highway access points.

Investment Highlights HARD CORNER LOCATION BETWEEN FRED MEYER, LOWE S HOME IMPROVEMENT AND A BRAND NEW 600-UNIT MULTI-FAMILY DEVELOPMENT. ROUGHLY 20-YEAR TENURE IN THIS LOCATION WITH NINE YEARS REMAINING. ABSOLUTE NET LEASE STRUCTURE PROVIDES ZERO MANAGEMENT RESPONSIBILITY. EXPERIENCED INTERNATIONAL CORPORATE OPERATOR OWNS 10 KID S COUNTRY LOCATIONS IN THE PUGET SOUND WITH STRONG REGIONAL BRAND RECOGNITION. A TOP PERFORMING LOCATION IN THE PUGET SOUND. CONTACT CAPITAL PACIFIC FOR MORE INFORMATION. LESS THAN ONE MILE FROM TWO MAJOR STATE HIGHWAY ACCESS POINTS WITH EXCELLENT VISIBILITY ALONG 10TH STREET. DENSE RESIDENTIAL POPULATION BASE WITH MORE THAN 250,000 RESIDENTS WITHIN A 15-MINUTE DRIVE.

PAGE 7 About the Tenant FOUNDED 1988 LOCATIONS 10 in the Puget Sound KID S COUNTRY LEARNING CENTERS The Lessee is Kid s Country Auburn, LLC care of Pansophic Learning US, LLC. The Operator of Kid s Country Auburn, LLC owns and operates 10 locations throughout the Puget Sound. Pansophic Learning was founded in 2014 by Safanad and Ron Packard, the founder K12 Inc. SAFANAD LIMITED An experienced principle investment firm that applies proven investment and risk management disciplines across specialized industry sectors. Safanad s investment focus is primarily within the healthcare, education, financial services and retail sectors, operated internationally. Parent Company FOUNDED 2009 OFFICES New York, Dubai, London, and Geneva Investment Highlights

Site RESERVE AT AUBURN Brand new 592 Multi-Family units built in 2017 KID S COUNTRY A STRET NE

PAGE 9 20,400 VPD 10 TH STREET NE Site

Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 875 2,754 7,369 Employees 11,419 42,231 95,892 Population 9,808 77,842 247,862 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Ace Hardware AutoZone Big 5 Sporting Goods Burger King Dollar Tree Fred Meyer Goodwill THE OUTLET COLLECTION AT&T Bed Bath & Beyond Burlington Coat Factory Columbia Sportswear Eddie Bauer Famous Footwear Grocery Outlet Harbor Freight Lowe s Home Improvement NAPA Auto Parts O Reilly Auto Parts Rite Aid Ross Dress for Less GNC Nutrition LA Fitness Men s Warehouse Nike Nordstrom s Rack Old Navy Sally Beauty Starbucks Walgreens Walmart Supercenter Payless Shoe Source Sprint T-Mobile ULTA Beauty

PAGE 11 NORTH AUBURN ELEMENTARY SCHOOL 167 KID S COUNTRY 10 TH STREET NE 20,400 VPD A STREET NE WEST AUBURN SENIOR HIGH SCHOOL WASHINGTON MIDDLE SCHOOL AUBURN HIGH SCHOOL 18 18 THE OUTLET COLLECTION SEATTLE Surrounding Retail

Site Plan 9,080 LEASEABLE SF A STREET NE 10 TH STREET NE 20,400 VPD 0.99 ACRES 30 SPACES; 3.3/1,000 SF

PAGE 13 GATED PLAYGROUND AREA 10 TH STREET NE SITE PLAN KEY Trash Receptable SITE PLAN NOT TO SCALE Site Plan

Financial Summary PRICE $5,290,000 CAPITALIZATION RATE 6.00% CASH FLOW SUMMARY SCHEDULED INCOME Base Rent for the Period of: 2/1/2019-1/31/2020 $314,894 Rent Increases Over Base Rent $2,624 Total Effective Gross Income (EGI) $317,519 OPERATING EXPENSES CAMS Property Taxes Insurance Total Operating Expenses NNN NNN NNN NET OPERATING INCOME $317,519 ABSOLUTE NET LEASE WITH 9 YEARS REMAINING ON TERM This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PAGE 15 KID'S COUNTRY - AUBURN Lease Term: Size (SF): 8/15/2017-8/31/2027 9,080 RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT CAP RATE 9/1/2018 $26,241 $314,894 6.00% 9/1/2019 $26,766 2% $321,192 6.07% 9/1/2020 $27,301 2% $327,616 6.19% 9/1/2021 $27,847 2% $334,168 6.32% 9/1/2022 $28,404 2% $340,852 6.44% 9/1/2023 $28,972 2% $347,669 6.57% 9/1/2024 $29,552 2% $354,622 6.70% 9/1/2025 $30,143 2% $361,715 6.84% 9/1/2026 $30,746 2% $368,949 6.97% OPTIONS 270 Days' Notice 1 9/1/2027 FMR 2 9/1/2032 FMR CURRENT $26,241 $314,894 6.00% LEASE NOTES Comments: Tenant operates on an Absolute NNN lease with 2% Annual Increases. The tenant has two, five-year option periods at fair market rent. Tenant responsible for roof membrane repairs equal to an amortized amount based on the useful life of the new roof for the remainder of their lease term and options. Financial Summary

Puget Sound Locations 1 2 3 4 5 6 SUBJECT PROPERTY 7 8 9

PAGE 17 Kid s Country Locations THE STRONG REGIONAL BRAND has 10 locations in the Puget Sound operated by Pansophic Learning, a subsidiary of Safanad Eduction. 1. EVERETT 12625 Fourth Avenue W Everett, WA 98204 3. BOTHELL 820 228th Street SE Bothell, WA 98021 5. ISSAQUAH 710 NW Gilman Boulevard Issaquah, WA 98027 7. MAPLE VALLEY 24221 SE Kent Kangley Road Maple Valley, WA 98038 2. MONROE 14943 N Kelsey Street Monroe, WA 98272 4. WOODINVILLE 17590 Woodinville-Snohomish Road Woodinville, WA 98072 6. BURIEN 14400 Ambaum Boulevard SW Seattle, WA 98166 8. TACOMA 1806 S Mildred Street Tacoma, WA 98465 9. BONNEY LAKE 20020 S Prairie Road E Bonney Lake, WA 98390 Puget Sound Locations

Questions & Answers Q: IS THE TENANT REQUIRED TO REPORT FINANCIALS? A: Kid s Country and Safanad are not required to disclose financials per the lease. Please contact Capital Pacific for further details regarding store performance. Q & A Q: HAVE THERE BEEN ANY CAPITAL IMPROVEMENTS SINCE THE ORIGINAL CONSTRUCTION? A: Yes, nearly $300K was invested over the last five years into the stucco siding, the storefronts and the playground area. Q: HAVE ANY LOCATIONS EVER BEEN CLOSED? A: Only one location has been closed in Kid s Country s 30-year history. The shuttered location was not owned by the founding family, but separately owned by an employee. The 10 remaining locations were previously all family owned.

PAGE 19 Questions & Answers

Lease Abstract Premise & Term TENANT Kid s Country Auburn, LLC c/o Pansophic Learning US, LLC, (a subsidiary of Safanad) BUILDING SF 9,080 SF LEASE TYPE Absolute Net LEASE COMMENCEMENT August 15, 2007 EXPIRATION August 31, 2027 OPTIONS 2, 5-Year Options; 270-Day Notice Rent ANNUAL 2% RENT INCREASES DATE RANGE MONTHLY RENT ANNUAL RENT 09/01/2018-08/31/2019 $26,241/Month $314,894/YR 09/01/2019-08/31/2020 $26,766/Month $321,192/YR OPTIONS 2, 5-Year Options at Fair Market Rent

PAGE 21 Expenses TAXES Tenant shall pay as additional rent its pro rata share of all Taxes. INSURANCE Tenant, at their own expense, shall maintain general liability insurance and fire and extended coverage property insurance policies. UTILITIES Tenant shall pay for all charges for utilities and services supplied to the Premises, including service charges for electricity, gas, telephone, water, and sewer. TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair to the interior and exterior of the premises. If a repair is considered a Capital Expense (roof membrane or HVAC replacement) the cost of the Capital Item shall be amortized over its useful life and Tenant shall only be responsible for amortized costs that fall within the lease term. LANDLORD S OBLIGATIONS Landlord has zero responsibilities. Lease Abstract

Featured Photography

PAGE 23 Featured Photography

Location Auburn, Washington AUBURN is a suburban community in Southeast King County and a small portion in Pierce County. Largely a bedroom community to Seattle and Tacoma, Auburn also has several major employers within the city limits including the Boeing Company with a local presence of nearly 6,000 employees. The city of Auburn has recognized strong residential growth along with King and Pierce Counties. More than 200,000 people have moved into King and Pierce counties over the last 5 years and it s anticipated that nearly 40,000 more jobs will be created by the middle of 2019 in those two counties. The Puget Sound counties have topped national lists in recent years for the amount of in-migration and continue to benefit from a stable and growing economic outlook.

Growth & Development PAGE 25 CONTINUED POPULATION GROWTH in the city of Auburn has prompted housing development nearby including the brand new 592-unit Reserve at Auburn, which was built in 2017 adjacent to the Subject property. The 5-building transit-oriented development (TOD) consists of 297 senior living apartments, 295 family units and 11,000 square feet of ground floor retail space. To learn more, click here. EMPLOYER # OF EMPLOYEES Boeing 5,993 Top 5 employers The Outlet Collection of Seattle 3,208 Auburn School District 2,410 Muckleshoot Tribal Enterprises 1,650 Auburn Medical Center 1,580 Transit Access THE BEDROOM COMMUNITY ALSO BENEFITS from several transit options to both Tacoma and Seattle including the Sounder Train, opened in 2000, running daily between Lakewood and Seattle with a stop at Auburn Station. Auburn Station has 633 parking stalls and serves Pierce Transit, King County Metro and the Sound Transit Express along with the Sounder, making Auburn highly accessible to the Puget Sound employment hubs. Location

Demographics KEY 5 MINS 10 MINS 15 MINS Distance to Tacoma, Washington Seattle, Washington 15 MILES 20 MINS 25 MILES 35 MINS

PAGE 27 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 10,489 66,527 222,514 2018 11,492 74,775 252,152 2023 12,175 80,118 270,144 2018 HH INCOME 5 MINS 10 MINS 15 MINS Average $62,291 $78,510 $82,491 Median $44,994 $59,657 $63,475 2.189M KING COUNTY (ESTIMATED) Demographics

We d love to hear from you. DAVID GELLNER dgellner@capitalpacific.com PH: 206.693.3349 SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us