Long Term Passive Lease – Over 14 Years Remaining on NNN lease with minimal Landlord Responsibility
Strong Enrollment Numbers – As of September of ’24, the location had 140 students enrolled with a total capacity of 169 students. These are impressive numbers as the location opened on 2/1/24 and childcare operators are not allowed to pre-enroll in the state of Alabama.
Annual Rental Increases – The lease provides 2% annual increases providing a strong hedge against inflation and a growing cash flow / overall return.
Corporate Lease with Industry Leading Operator – 02B Kids! has approximately 70 locations nationwide and opened 11 stores in 2024. The company was founded in 1998 and operates locations across five states: Florida, Alabama, Georgia, Missouri, and Minnesota
Tenant’s website: https://o2bkids.com/
Affluent Suburb of Huntsville, AL – The subject property is located in Madison, AL which benefits from an average HH income of ±$145,000 and has ranked as the #1 zip code to live in Alabama from 2021-2024 (niche.com)
Rapidly Growing MSA – Huntsville, AL boasts a ±20% population growth (2010-2020)
High Growth Industry – The childcare industry is experiencing significant growth, with the market projected to reach $73.8 billion by 2027, driven by rising dual-income households and increasing demand for quality early education. Government support is also expanding, with over $24 billion in federal funding allocated in recent years to make childcare more affordable and accessible.