BRIGHT IDEAS ENRICHMENT CENTER · BRIGHT IDEAS Established in 1996, Bright Ideas is not your...
14
BRIGHT IDEAS ENRICHMENT CENTER 2104 Hillshire Circle, Memphis, TN 38133 Offering Memorandum
Transcript of BRIGHT IDEAS ENRICHMENT CENTER · BRIGHT IDEAS Established in 1996, Bright Ideas is not your...
BRIGHT IDEAS ENRICHMENT CENTER2104 Hi l lshire Circle, Memphis, TN 38133
Offering Memorandum
NON-ENDORSEMENT & DISCLAIMER NOTICE
CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by
the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of
Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to
establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the
income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the
property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal
regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s
plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained
from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained
herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever
regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the
information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
© 2017 Marcus & Millichap. All rights reserved.
NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this
marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or
endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of
Marcus & Millichap, and is solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
BROKER OF RECORD (BOR) JODY MCKIBBEN
REGIONAL MANAGER, NASHVILLE, LIC.# 307629
BRIGHT IDEAS ENRICHMENT CENTER
MHER M. VARTANIANAssociate
PhiladelphiaCell 267.664.7118
Office [email protected]
License PA RS345557
CRAIG DUNKLESenior Associate
PhiladelphiaCell 717.531.7046
Office [email protected]
License PA RS324418
EXCLUSIVELY LISTED BY
O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
INVESTMENT OVERVIEWMarcus & Millichap is pleased to offer the opportunity to acquire the fee simple interest for a childcare center in Memphis, Tennessee sitting
on 1.39 acres with 11,414 SF of rentable space. Rent is $16.48/SF with 1% increases each year and a five-year renewal option after 15 years
with another five-year option after the first option. Bright Ideas Child Care is a 3-star facility established in the late 1990s. This Bright Ideas lo-
cation is not your typical childcare or preschool as it is a preschool and childcare center that has extracurricular activity programs for children
6 weeks to 12 years of age; offering a before and after school care program through its 35 employees to its 160-190 children throughout the
year. They are a well-respected early learning center designed to make the most of the early years when your child’s brain is developing more
rapidly than at any other time in their lives. The new NNN lease was signed in September 2019 and goes through August 2034.
Right off Whitten Road with close access to Interstate 40, the area sees a traffic of 109,177 vehicles per day. With a large amount of traffic
each day, the childcare center is optimally located within an area of about 170,000 people, of which the average age is 33 years old, within
a five-mile radius. Within the five-mile radius, the median household income is over $60,000 at a lower cost of living and over $98,000,000
is currently spent on education and childcare which is expected to rise to over $105,000,000 by 2024 representing a 7.14% increase. The
changing demographic each year shows the area getting younger as more affluent couple begin to move into Memphis area.
INVESTMENT HIGHLIGHTS• NNN lease from September 2019 to August 2034
• Premium Facility with 160-190 Children per Year and 35 Employees
• Serves Children from Six Weeks to 12 Years of Age
• 11,414 Rentable SF at $16.5/SF
• 1% Rent Increase Each Year
• Ideally Located Off (109,177 VPD)
• Average age of 33 Years Old with Increasing Child Demographic
• Median household income of $71,700 within a 5-mile radius
• Expected increase in education and childcare spending of 7.14% through 2024
• Over 20 years of Operating History
• Lease Backed by Private Equity Firm & 6 Personal Guarantee
4
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
P
RO
PE
RT
Y
DE
SC
RI
PT
IO
N
WHITTEN RD - 32,220 VPD
APPLING FARMS PKWY - 12,940 VPDMMcDonald’s
5
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
P
RO
PE
RT
Y
DE
SC
RI
PT
IO
N
6
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
T
EN
AN
T
SU
MM
AR
Y
TENANT OVERVIEW
BRIGHT IDEAS
Established in 1996, Bright Ideas is not your typical child care or preschool. We are an early learning center designed to make the most of the early years when your child’s brain is developing more rapidly than at any other time in their lives. Bright Ideas is designed to help children develop an understanding of con-cepts, not just to be able to memorize them. Bright Ideas strives to promote the brightest ideas in your child for a long-term advantage. We encourage you to visit our schools where you will see active learners, constructing their own knowledge through exploration and building a lifelong love of learning.
Tenant Name Bright Ideas
Websitewww. clearcapitalpartners.com
www.brightideasco.net
Parent Company Clear Capital Partners
Headquartered Orange Beach, AL
Rentable Square Feet 11,414 SF
Percent of RBA 100%
Lease Commencement 8/23/2019
Lease Expiration 8/31/2034
No. of Locations 3
CLEAR CAPITAL PARTNERS
“With over $20 Million in new & contracted acquisitions in the first half of 2019, Clear Capital Partners (CCP) is well positioned to be the next M&A darling for at-tracting capital.”
What started as a part-time venture in 2017, has turned into a very successful full-time operation. Led by CEO, Chris Isbell, the CCP team has created a way to solve a big problem in the Small to Medium sized business space. “I was looking into my next investment opportunity, and stumbled upon some very compelling data in the world of Small to Medium size businesses.”
With over 100 years of combined professional experience, our team believes that clients are not just “clients”, but are treated, in a more collaborate effort, as an actual “Partner” of “Clear Capital”. Furthermore, part of that same collaboration, in working together, is to maintain a smooth transition for the business owner en-abling them to scale and solve bigger and more meaningful problems
Tenant Name Bright Ideas
Websitewww. clearcapitalpartners.com
www.brightideasco.net
Headquartered Orange Beach, AL
Percentage of RBA 100%
TENANT OVERVIEW
7
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
T
EN
AN
T
SU
MM
AR
Y
PROPERTY BRIGHT IDEAS ENRICHMENT CENTER
Property Address 2104 Hillshire Circle, Memphis, TN 38133
Price $2,475,000
CAP Rate 7.60%
Price SF $212.90
FINANCIALS
PROPERTY DESCRIPTION
Year Built/Renovated 1985
Gross Leasable Area 11,414 SF
Zoning EMP
Type of Ownership Fee Simple
Lot Size 1.39 Acres
LEASE SUMMARY
Property Subtype Net Leased Child Care
Tenant Bright Ideas Enrichment Center
Rent Increases 1% Every Year
Guarantor Private Guarantee
Lease Type Absolute Net
Lease Commencement 8/23/2019
Lease Expiration 8/31/2034
Lease Term 15
Term Remaining on Lease (Years) 14.8
Renewal Options 2(2) Five Year Options
Right of First Refusal/Other No
RENT SCHEDULE
YEAR ANNUAL RENT MONTHY RENT RENT/SF CAP RATE
Current $188,109 $15,676 $16.48 7.60%
2020 $189,990 $15,832 $16.65 7.68%
2021 $191,890 $15,991 $16.81 7.75%
2022 $193,809 $16,151 $16.98 7.83%
2023 $195,747 $16,312 $17.15 7.91%
2024 $197,704 $16,475 $17.32 7.99%
2025 $199,681 $16,640 $17.49 8.07%
8
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
LEASE SUMMARY BRIGHT IDEAS ENRICHMENT CENTER
Landlord Responsibilities Absolute Triple Net Lease
Tenant Responsibilities
Tenant shall be responsible for all maintenance, replacements, and repairs of leased property without any expense to the Landlord. The tenant must also
provide quarterly and annual prepared financial statements to the Landlord within 30 days of the applicable period. Tenant shall also keep and maintain
the Leased Premises in good condition and repair, for all structural components and all systems that service the building, including engaging a services
contractor, approved by the landlord, to perform quarterly maintenance on all HVAC systems.
Taxes Tenant agrees to pay all real estate taxes and must show receipt of payment to the landlord within 30 days.
Insurance
Tenant shall, solely, be responsible to maintain property insurance and personal property insurance and commercial general liability (with the Landlord
additionally insured in the policy).
Landlord shall maintain building insurance against fire and other such risks along with the choice for an umbrella insurance policy for what landlord deems
as necessary. Any costs, including premiums and any deductibles, shall be paid by the tenant to the landlord.
UtilitiesTenant shall pay all charges resulting from utilities used in the leased premises, including electricity, gas, water/sewer, light, power, internet, and communi-
cation services. Landlord shall not be responsible for any failure in utilities or injuries resulting from malfunction or repair.
Assignment & SublettingTenant shall not, without Landlord’s prior written consent, have the right to sublease the leased premises or otherwise transfer its interest under the lease
agreement.
Estoppel Tenant shall have 10 days receipt of a request to provide an executed estoppel.
9
BR
IG
HT
SI
DE
E
NR
IC
HM
EN
T
CE
NT
ER
//
F
IN
AN
CI
AL
A
NA
LY
SI
S
10
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
Memphis location in North Memphis – Property Totaling 63 acres
Hire approximately 1,500 people
In December 2019, Amazon officially announced its purchase of land in the greater Nashville and Memphis region to create two new fulfillment centers totaling over 8 million square
feet. The first project, nicknamed Project Sam, is in Mt. Juliet, Tennessee, a few miles east of downtown Nashville, while the second project, nicknamed Project Iris, will be in North
Memphis. Each project is expected to employ more than 1,000 people. With its choice to make an enormous investment in Nashville and Memphis speaks to the region’s well-devel-
oped transportation infrastructure and has the ability to reach 75% of the population in Tennessee every day.
In North Memphis, TN, Amazon announced it was going to build a five-story fulfillment center on 63 acres they purchased for the project. Amazon spent ~$3.1 million on the property,
in Raleigh, and is about 15 miles away from both daycares locations. Through this warehouse, Amazon is expected to hire north of 1,200 employees where some will be full-time while
others are part-time. Amazon has recently raised its minimum wage for U.S. employees to $15/hour showing the true value behind the jobs that will begin to make way in Memphis.
Natives of Memphis will benefit from the economic activity and from the employment and income opportunities. This Amazon fulfillment center will be the largest distribution center
in Memphis at about 4 million square feet.
Due to Amazon’s ability to pay such high wages, properties tend to increase in value when Amazon announces expansion into other large U.S. cities. Previously, Amazon’s HQ2 was
moved from NYC because the politicians in New York were afraid of what it would do to the cost of living, causing natives to the area because they can no longer afford to live in the
immediate area. With both Nashville and Memphis attempting to grow their cities and the high paying jobs, Amazon will provide the area with newfound wealth and job fulfillment.
PROJECT IRIS
DEMOGRAPHICS HIGHLIGHTS
1.4 Million
$73,700
509K
2018 TOTAL POPULATION
AVERAGE INCOME
HOUSEHOLDS
HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2023 Projection 3,345 29,626 53,107
2018 Estimate 2,791 25,526 46,954
2010 Census 2,655 24,163 44,926
2000 Census 1,929 15,751 32,295
INCOME 1 MILE 3 MILES 5 MILES
Average $104,803 $96,267 $94,243
Median $82,706 $73,697 $71,669
Per Capita $32,828 $38,196 $36,330
Often considered the home of the blues as well as the birthplace of rock ‘n’ roll, Memphis has music in its soul.
The metro spans 3,000 square miles over nine counties in the states of Tennessee, Mississippi and Arkansas. The
Tennessee counties include Shelby, Fayette and Tipton. Crittenden County is in Arkansas, and Tate, DeSoto, Tunica,
Benton and Marshall counties are in Mississippi. The Mississippi River runs through the metro, forming the border
between Tennessee and Arkansas. Other rivers flowing through the region define areas available for development.
The market contains nearly 1.4 million residents and more than 953,400 reside in Shelby County. Memphis is the
area’s most populous city with nearly 659,000 citizens.
POPULATION 1 MILE 3 MILES 5 MILES
2023 Projection 9,348 73,623 136,363
2018 Estimate 7,943 64,428 122,093
2010 Census 7,519 60,213 115,509
2000 Census 5,512 40,434 83,805
11
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
//
M
AR
KE
T
OV
ER
VI
EW
CORDOVA, TN1950 Berryhill Road
Rent/SF = $16.36
GLA = 7,500 SF
1% Rent Increases
Credit of the Tenant
Landlord Responsibilities: Roof and Structure
11 Years of Term Remaining
MEMPHIS, TN2104 Hillshire Circle
Rent/SF = $16.48
GLA = 11,414 SF
1% Rent Increases
12
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
1
Close Of Escrow 11/1/2019
Days On Market 291
Sales Price $4,400,000
Price/SF $382.61
CAP Rate 7.07%
GLA 11,500 SF
Lot Size 1.2 acre(s)
Year Built 2018
CARRINGTON ACADEMY2409 Hancock Dr, Braselton, GA, 30519
2
Close Of Escrow 5/13/2019
Days On Market 241
Sales Price $4,150,000
Price/SF $415.00
CAP Rate 6.75%
GLA 10,000 SF
Lot Size 1.57 acre(s)
Year Built 2018
THE LEARNING EXPERIENCE 9410 W Commercial Blvd, Tamarac, FL, 33351
13
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
BR
I/
SA
LE
S
CO
MP
AR
AB
LE
SSALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
3
Close Of Escrow 5/2/2019
Days On Market 755
Sales Price $3,500,000
Price/SF $259.26
CAP Rate 6.86%
GLA 13,500 SF
Lot Size 2.07 acre(s)
Year Built 2008
KINDERCARE (RAINBOW)3050 International Pkwy, Heathrow, FL, 32746
4
Close Of Escrow 4/5/2019
Days On Market 81
Sales Price $5,300,000
Price/SF $408.10
CAP Rate 6.57%
GLA 12,987 SF
Lot Size 1.78 acre(s)
Year Built 2017
CARRINGTON ACADEMY2945 Webb Bridge Rd, Alpharetta, GA, 30009
5
Close Of Escrow 1/25/2019
Days On Market 108
Sales Price $2,196,095
Price/SF $293.13
CAP Rate 7.36%
GLA 7,492 SF
Lot Size 1.30 acre(s)
Year Built 1998
KINDERCARE LEARNING CENTER200 Allen Bradley Drive, Mayfield Heights, OH, 44124
14
BR
IG
HT
I
DE
AS
E
NR
IC
HM
EN
T
CE
NT
ER
BR
I/
SA
LE
S
CO
MP
AR
AB
LE
SSALES COMPARABLES
