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29122549
29122550

2608 St Andrews Dr, Murfreesboro, TN 37128

DS
IL IL 475.134920
Marcus & Millichap - Chicago Oak Brook
Listed by Marcus & Millichap - Chicago Oak Brook
$6,166,000
156 days on market
Updated 18 days ago

o2b Kids ! - Murfreesboro, TN (Nashville MSA)

Details
Property Type Retail
Sub Type Day Care/Nursery
Square Footage 11,060
Cap Rate 6.75%
NOI $416,188
Occupancy 100%
Tenancy Single
Brand/Tenant o2b Kids!
Lease Type NNN
Lease Term 16.5
Lease Expiration 12/31/2040
Remaining Term 14.6
Rent Bumps Yes
Lease Options Two, Five-Year
Price per SqFt $558
Broker Co-Op Yes
Year Built 2025
Acreage 1.400
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 07/15/2024
Ground Lease No
Ownership Fee Simple

Brand New 2025 Construction | 15+ Year Remaining with 2.00% Annual Increases | Corporate Guaranty

Investment highlights

15+ Years Remaining with 2.00% Annual Increases in Rent

  • O2B Kids! signed a 15-year lease, offering long-term cash flow through December 2040 with two, five-year extension options immediately following the Base Term.

  • Aside from structure and foundation, the tenant is responsible for all maintenance as well as real estate taxes, insurance, common areas, utilities, etc making this a prime opportunity for out-of-state investors.

  • 2.00% annual rental increases provide contractual rent growth for the remainder of the base lease term and the two, five-year option periods.

Corporate Guaranty from Top 15 Operator in the Country (75+ Locations)

  • O2B Kids! is a Top 15 Corporate childcare companies in the country.

  • O2B Kids! currently operates over 75 locations across five states.

  • 14th largest childcare brand by number of locations with $119 million in 2024 reported annual revenue.

Nashville MSA - 500%+ Population Growth Since 2000

  • Murfreesboro, located just 34 miles southeast of Nashville, is a rapidly expanding suburban city within the Nashville Metropolitan Statistical Area.

  • Known as the epicenter of country music, the Nashville metro contains a population of about two million within 14 counties.

  • The population will increase at a faster pace than the nation over the next five years.

Demand For Child Care Remains Extremely Strong

  • The U.S. child care market size was valued at USD 60.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.18% from 2023 to 2030.

  • The key factor driving the growth is the rising demand for early daycare & education services with more parents returning to working in offices, the rising number of single & working mothers, advancements in learning technologies for children, and the accessibility of government funding.

  • The expenditure on daycare in the U.S. is very high. As per the cost of care survey facilitated by the U.S. Department of Health and Human Services, the expenditure on these services reached up to 7% of the household income in 2021.

  • Families in the U.S. are willing to spend more on child care services, indicating the high service demand in the U.S.

Listing Contacts

DS
IL IL 475.134920
Marcus & Millichap - Chicago Oak Brook
Listed by Marcus & Millichap - Chicago Oak Brook

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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$416,188.00
$34,682.33/mo

Valuation Metrics

0
DSCR
6.75%
Cap Rate
6.75%
ROI

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Additional Information

Name
Jody McKibben
License
307629
Brokerage
Marcus & Millichap
Title
Broker of Record
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