guidepost montessori - loopnet · mckinney, a premier single tenant investment in the affluent...

NOR GUIDEPOST MONTESSORI

MCKINNEY, TX (DALLAS MSA)

A 20-YEAR ABSOLUTE NNN LEASE TO A CORPORATE TENANT IN DALLAS MSA

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27,496 VPD

ELDORADO PARKWAY

WILLOW GROVE BOULEVARD

CUSTER BRIDGES HUNTERS

CREEKLAWLER

PARK

DR. J.M. OGLE ELEMENTARY

SCHOOL

XPLOR PRESCHOOL & SCHOOL AGE

CARE

CHIROPRACTIC WELLNESS

CENTER

DALLAS FORT WORTH

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.

Retail Aerial

Retail Aerial

10,246VPD

27,496 VPD

ALMA ROAD

EVANS MIDDLE SCHOOL

JOHN AND JUDY GAY

PUBLIC LIBRARY

EDRIS ELLIOTT

ELEMENTARY SCHOOL

WOLFORD ELEMENTARY

SCHOOL

ELDORADO

PARKWAY

80,000 SF FITNESS AND COMMUNITY

CENTER

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. 3

TOTAL 1-MILE 3-MILES 5-MILES

Residential 14,658 120,860 238,222

Average Household Incomes

$135,205 $128,626 $132,138


GUIDEPOST MONTESSORI

6.75%CAP

$3,644,000PRICE

7508 ELDORADO PKWY, MCKINNEY, TX 75070

LEASABLE SF8,815 SF

LEASE TYPECorporate NNN

NOI$246,000

LAND AREA1.43 Acres

YEAR BUILT2017

LEASE TERM20 Years (17.5 remaining)


20-year absolute NNN lease (17.5 years left)

Leased to largest corporate Montessori Operator in U.S.

Internet resistant / Amazon-proof corporate tenant

2.50% annual rent increases and corporate guaranty

Affluent Dallas suburb with average HH incomes of $135,205 within 1-mile radius of subject property

Investment Overview

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https://www.google.com/maps/place/7508+Eldorado+Pkwy,+McKinney,+TX+75070/@33.1741672,-96.7189686,2325m/data=!3m1!1e3!4m5!3m4!1s0x864c15d097c9324f:0x7afb1a5f12353579!8m2!3d33.1747956!4d-96.7166438

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Investment Highlights

CAPITAL PACIFIC is pleased to present the opportunity to acquire Guidepost Montessori McKinney, a premier single tenant investment in the affluent Dallas suburb of McKinney, TX. The subject property features a 20-year NNN lease (17.5 years left) to Guidepost Montessori, the largest corporate Montessori school operator in the U.S. The absolute NNN lease structure features 2.50% annual rental increases and two 5-year options to extend the lease after the primary term. The lease is guaranteed by Guidepost’s parent company, Higher Ground Education (HGE), which is valued at $100M and operates 39 Guidepost locations across the country, focused on affluent and dense residential demographics.

Contact the team


JOHN [email protected]: 415.274.2715CA DRE# 01440360

JUSTIN [email protected]: 415.274.7392CA DRE# 01895013

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GUIDEPOST MONTESSORI HAS 39 LOCATIONS IN 9 STATES AND 3 COUNTRIES

THE SUBJECT PROPERTY is located in McKinney, TX, a high-income suburb within the Dallas-Fort Worth MSA, the largest inland metro area in the U.S. It features hard corner visibility on Eldorado Parkway, one of the main commercial thoroughfares in McKinney. The trade area boasts average household incomes over $132,000 within 5-miles and $135,000 within 1-mile of the property. As a result of these affluent demographics, schools in the area are able to command very high tuitions. Additionally, the property is surrounded by a host of synergistic commercial properties, including national retailers like Kroger, CVS, Target, and Lowe’s, as well as the Apex Centre, a community center and fitness & recreation facility for children and adults which serves the entire McKinney community.

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262

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121

399

5

5

380380

380

75

75

EL DORADO PARKWAY

ALM

A R

OA

D

ALMA

ROAD

EL DORADO PARKWAY INDUSTRIAL

BOULEVARD

EL DORADO

PARKWAY

CU

STER

RO

AD

CU

STER

RO

AD

77,320 VPD

10,246 VPD

METHODIST MCKINNEY HOSPITAL

MEDICAL CENTER CRAIG RANCH

MEDICAL CITY

HOSPITAL

BAYLOR SCOTT

& WHITE MEDICAL CENTER

MCKINNEY NATIONAL AIRPORT

SCHOOL

SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

HIGH SCHOOL

HIGH SCHOOL

CITY OF MCKINNEY

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

GOLF COURSE

SPORTS COMPLEX

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL ELEMENTARY

SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

MIDDLE SCHOOL

ELEMENTARY SCHOOL

30,300 VPD

160,420 VPD

27,496 VPD

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Aerial

DALLAS(32 MILES)


SAM RAYBURN TOLLWAY

EL DORADO PARKWAYEL DORADO PARKWAY

CU

STER

RO

AD

CU

STER

RO

AD

ALM

A RO

AD

ALM

A

DRIV

E

SAM RAYBURN TOLLWAY

STONEBRIDGE RANCHRUSSWOOD

ACRES

ROSE GARDEN

FRISCOHEIGHTS

HUNTERS CREEK

THE GROVE FRISCO

ESTATES AT SHADDOCK

PARK

SHEPARDS HILL

TURNBRIDGE MANOR

RIDGEVIEW RANCH

TWIN CREEKS

WALNUT SPRINGS

THE LANDINGSWATERFORD

AVONDALE

STAR CREEK

COURTNEY MANOR FAIRWAYS OF

RIDGEVIEW

MANSIONS AT RIDGEVIEW

RICHWOODS

STANRIDGE

SORANO

CUSTER BRIDGES

STONELAKE ESTATES

WEST

CUSTER CREEK FARMS

THE ARBORS AT WILLOW

BAY

VILLAGES AT WILLOW

BAYPANTHER

CREEK ESTATES

PRAIRIE VIEW

MIRAMONTE

RIDGECREST

RIDGEVIEW AT PANTHER

CREEK

WINDING CREEK ESTATES

STONEGATE

CRAIG RANCH

EAGLE RIDGE

PINE RIDGE ESTATES

WILLOW BROOK

FALCON CREEK

ARBOR GLEN

WINDING CREEK

QUAIL CREEK

CORONADO VILLAGE

ELDORADO

THE VINEYARDS

THE CASCADES

STONE HOLLOW

WESTMINSTER AT CRAIG RANCH

DALLAS(32 MILES)

77,320 VPD

33,770 VPD

10,246 VPD

27,496 VPD


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Surrounding Residential Aerial

8

Subject Property

9

Surrounding Retail

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Income & Expense


PRICE $3,644,000 Price Per Square Foot: $413.39

Capitalization Rate: 6.75%

Total Rentable Area (SF): 8,815

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $27.91 $246,000

Effective Gross Income $27.91 $246,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $246,000

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Rent Roll


TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT CAP RATE

Guidepost McKinney 8,815 2/1/2020 1/31/2021 $246,000 $20,500 $246,000 $2.33 $27.91 6.75%

2.50% annual increases through all primary and option term years

Year 5 $21,013 $252,150 $2.38 $28.60 6.92%

Year 6 $21,538 $258,454 $2.44 $29.32 7.09%

Year 7 $22,076 $264,915 $2.50 $30.05 7.27%

Year 8 $22,628 $271,538 $2.57 $30.80 7.45%

Year 9 $23,194 $278,327 $2.63 $31.57 7.64%

Year 10 $23,774 $285,285 $2.70 $32.36 7.83%

Year 11 $24,368 $292,417 $2.76 $33.17 8.02%

Year 12 $24,977 $299,727 $2.83 $34.00 8.23%

Year 13 $25,602 $307,221 $2.90 $34.85 8.43%

Year 14 $26,242 $314,901 $2.98 $35.72 8.64%

Year 15 $26,898 $322,774 $3.05 $36.62 8.86%

Year 16 $27,570 $330,843 $3.13 $37.53 9.08%

Year 17 $28,260 $339,114 $3.21 $38.47 9.31%

Year 18 $28,966 $347,592 $3.29 $39.43 9.54%

Year 19 $29,690 $356,282 $3.37 $40.42 9.78%

Year 20 $30,432 $365,189 $3.45 $41.43 10.02%

Option 1 21 25 2.5% ann. inc. $31,193 $374,318 $3.54 $42.46 10.27%

Option 2 26 30 2.5% ann. inc. $35,292 $423,507 $4.00 $48.04 11.62%

TOTALS: 8,815 $246,000 $20,500 $246,000 $2.33 $27.91

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Lease Abstract

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

2/1/2017 $19,036 $228,4352/1/2018 $19,512 $234,1462/1/2019 $20,000 $240,0002/1/2020* $20,500 $246,000

*2.50% annual increases during primary and option terms

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. 21 - 25 $31,193 $374,318 #2. 26 - 30 $35,292 $423,507

RENT

TENANT Guidepost MontessoriLEASE SIGNED BY Guidepost A LLC (Corporate)LEASE TYPE Corporate NNNTERM 20 Years (17.5 years remaining)RENT COMMENCEMENT 2/1/2017OPTIONS Two 5-year options

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TAXESDuring the Term of this Lease, Tenant shall pay the Taxes directly to the appropriate taxing authorities.

INSURANCETenant agrees during the Term of this Lease, to maintain at its sole cost and expense, all insurance costs, including: commercial general liability insurance, worker’s compensation insurance, casualty coverage, business interruption insurance, and an umbrella liability policy.

UTILITIESTenant shall arrange with and pay directly to such public utility companies for all utilities which it uses on the Premises.

TENANT’S OBLIGATIONSTenant is fully responsible, at its sole cost and expense, for all aspects of the repair, maintenance, replacement, and upkeep of all aspects and portions of the Premises, including all structural, foundation, roof, electrical, and plumbing and HVAC systems, landscaping, and pest control.

LANDLORD’S OBLIGATIONSZero expense or maintenance obligations.

EXPENSES

The details contained within the Lease Abstract are provided as a courtesy to the recipient for purposes of evaluating the Property’s initial suitability. While every effort is made to accurately reflect the terms of the lease document(s), many of the items represented herein have been paraphrased, may have changed since the time of publication, or are potentially in error. Capital Pacific and its employees explicitly disclaim any responsibility for inaccuracies and it is the duty of the recipient to exercise an independent due diligence investigation in verifying all such information, including, but not limited to, the actual lease document(s).

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ARKW

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S STONEBRIDGE DRIVE

S STONEBRIDGE DRIVE

ALMA ROAD

METHODIST MCKINNEY HOSPITAL

APEX CENTER

ALMA ROAD

FENCED PLAYGROUND

MONUMENT SIGN

NOT A PART

14,700 VPD

10,246 VPD

27,496 VPD

Site Plan

13This site plan is a rendering that has been created based on sources we believe to be reliable. 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.

19SPACES

8,815RENTABLE SF

1.43ACRES

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Tenant Overview


Tenant Overview

Guidepost Montessori is the largest Montessori in the United States. They have 39 schools across the country including Palo Alto, Laguna Hills, Chicago, Brooklyn, Dallas, and Raleigh to name a few. What separates Guidepost from other schools is that they provide education from ages 10 weeks through age 18, children are able to learn through a sequenced education starting with day care, through elementary school, middle school, then high school. The value to parents and children is that there is a single source of education and relationships that are built through a child’s development period, which is a model that developmentally provides better student outcomes than single age education.

Higher Ground Education, the parent company of Guidepost Montessori, is based in Lake Forest, California, and is modernizing and mainstreaming the Montessori movement using cutting edge educational technology and educational programs that are child centered. Jeff Bezos (Founder and CEO of Amazon) recently committed $2 billion to Montessori based education.

They have backing from Learn Capital, the largest venture capital group in the educational technology space and the Walton Foundation (Wal-Mart Founder) demonstrating the credibility of the organization.

ABOUT GUIDEPOST MONTESSORI

LOCATIONS IN 9 U.S. STATES AND 3 COUNTRIES39

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Demographics

POPULATION

1-MILE 3-MILES 5-MILES

2010 11,021 81,524 162,855

2019 14,658 120,860 238,222

2024 16,641 138,610 272,881

2019 HH INCOME

1-MILE 3-MILES 5-MILES

Average $135,205 $128,626 $132,138

MCKINNEY

FORT WORTH (56 MILES)

THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS

IS OVER $135K


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DALLAS (32 MILES)

TOP EMPLOYERS IN DFW METROPLEX

EMPLOYER # OF EMPLOYEES

AMR (American Airlines) 24,700

Bank of America 20,000

Texas Health Resources 19,230

Dallas Independent School District 18,314

Baylor Health Care System 17,097

DALLAS IS A MAJOR TRANSPORTATION HUB with four major interstate highways converging in the city and a fifth interstate loop around it, a major inland port, railroad lines, the Dallas/Fort Worth International Airport and Dallas Love Field Airport. Dallas-Fort Worth’s vast transportation infrastructure connects residents and businesses. In 2017, the Dallas-Fort Worth metropolitan area ranked as the fifth-largest export market in the U.S., with a real export value of $58.4 billion according to Brookings Institution's Export Scan.

MCKINNEY, TEXAS

MCKINNEY, a city in Collin County, is a northern suburb of Dallas. Dallas is located in northeastern Texas, is the 9th largest city in the United States and the 3rd largest in Texas with a population of 1,341,075 residents. Dallas is the home to major educational institutions such as UT Southwestern Medical Center, Southern Methodist University, and the Dallas campus of the University of North Texas. The Dallas Arts District is one of the largest arts districts in the nation, with 20 square blocks and 68 acres of arts, entertainment and culture. The district is home to numerous museums, music venues, theaters, stunning modern architecture, and performing arts, hosting Dallas’ world-class opera, theater and dance. 16

Location Overview

7.4 MILLION

DALLAS MSA POPULATION (ESTIMATED)


DOWNTOWN DALLAS

Houston MSA

DALLAS


DALLAS - FORT WORTH MSATHE DALLAS/FORT WORTH METROPLEX (Dallas/Fort Worth, DFW) is a dynamic 12-county region made up of Dallas, Fort Worth, and another 150 municipalities. The Dallas area is the largest metropolitan area in Texas and the fourth largest in the United States spanning an area of 9,286 square miles with a population of approximately 6.8 million residents. Dallas-Fort Worth was one of the fastest growing metropolitan areas in the nation from 2000 to 2014, adding 1.6 million people for a 32% growth rate. By the year 2040, over 10.5 million people are projected to be living in the Metroplex.

The Dallas—Fort Worth metropolitan area is home to eight major league sports teams: the Dallas Cowboys (NFL), Dallas Mavericks (NBA), Texas Rangers (MLB, Dallas Stars (NHL), FC Dallas (MLS), Dallas Wings (WNBA), the Dallas Rattlers (MLL), and XFL Dallas (Xtreme Football League).

GENERAL STATS#1 LARGEST INLAND METRO AREA

4TH LARGEST METRO AREA

#11 U.S. NEWS BEST PLACES TO RETIRE

48.8 MILLION ANNUAL VISITORS

3.7 MILLION JOBS IN THE METRO AREA

#1 FORBES 2018 BEST CITY FOR JOBS

#18 U.S. NEWS & WORLD REPORTBEST PLACES TO LIVE

SAMANTHA TULLIO

We’d love to hear from you.

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:


JOE CACCAMOJOHN ANDREINI

JUSTIN SHARP

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JOHN [email protected]: 415.274.2715CA DRE# 01440360

JUSTIN [email protected]: 415.274.7392CA DRE# 01895013

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262

ZANDY SMITH

JUSTIN STARK SAMANTHA TULLIO

guidepost montessori - loopnet · mckinney, a premier single tenant investment in the affluent...

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