EXCLUSIVE NET LEASED OFFERING
VINEYEARD SHOPPING CENTER
1623 N Loop 1604 W San Antonio, TX 78258 Representative Photo
- 1623 N Loop 1604, San Guidepost Montessori A n t o n i o T X 7 8 3 2 3 - 20 Year Corporate Lease – Largest Montessori Operator in the Country Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a thorough due diligence investigation. Marcus & Millichap purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for has not made any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s for the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns of the property and improvements, the presence or any of this information, nor has Marcus & Millichap are not guaranteed; the tenant and any guarantors may absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. fail to pay the lease rent or property taxes, or may fail to the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or comply with other material terms of the lease; cash flow physical condition of the improvements thereon, or the representation whatsoever about the accuracy or may be interrupted in part or in whole due to market, financial condition or business prospects of any tenant, or completeness of any information provided. economic, environmental or other conditions. Regardless any tenant’s plans or intentions to continue its occupancy of tenant history and lease guarantees, Buyer is of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s responsible for conducting his/her own investigation of all Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and matters affecting the intrinsic value of the property and believe to be reliable; however, Marcus & Millichap has completeness of all material information before the value of any long-term lease, including the likelihood not verified, and will not verify, any of the information completing any purchase. This Marketing Brochure is not a of locating a replacement tenant if the current tenant contained herein, nor has Marcus & Millichap conducted substitute for your thorough due diligence investigation of should default or abandon the property, and the lease any investigation regarding these matters and makes no this investment opportunity. Marcus & Millichap expressly terms that Buyer may be able to negotiate with a warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence potential replacement tenant considering the location of accuracy or completeness of the information provided. All examination of this Property for Buyer. the property, and Buyer’s legal ability to make alternate potential buyers must take appropriate measures to verify use of the property. all of the information set forth herein. Any projections, opinions, assumptions or estimates used By accepting this Marketing Brochure you agree to release in this Marketing Brochure are for example only and do Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE not represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and of this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s Buyer and Buyer’s tax, financial, legal, and construction logo or name is not intended to indicate or imply advisors should conduct a careful, independent The information contained in the following Marketing affiliation with, or sponsorship or endorsement by, said investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is corporation of M&M, its affiliates or subsidiaries, or any your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it agent, product, service, or commercial listing of M&M, your needs. from Marcus & Millichap and should not be made and is solely included for the purpose of providing tenant available to any other person or entity without the written lessee information about this listing to prospective Like all real estate investments, this investment carries consent of Marcus & Millichap. This Marketing Brochure customers. significant risks. Buyer and Buyer’s legal and financial has been prepared to provide summary, unverified advisors must request and carefully review all legal and information to prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. financial documents related to the property and tenant. only a preliminary level of interest in the subject property. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT While the tenant’s past performance at this or other The information contained herein is not a substitute for a FOR MORE DETAILS. - $1.3M Interior & Exterior Remodel Now Underway
Subject Property Investment Highlights PRICE: $7,773,664| CAP RATE: 6.25% | RENT: $485,854 About the Investment ✓ Brand New 20-Year Net Lease with the Largest Private Montessori School Operator in the Country – 76 Locations, Including 8 International Locations ✓ 2020 Remodel/Rebrand ✓ Corporate Guarantee From Guidepost’s Parent Company – Higher Ground Education Inc ✓ Enrollments up 14% Since Pre-Covid! ✓ Tenant is Currently Remodeling/Rebranding the Site and Committing $1.3M in Interior and Exterior Improvements ✓ 2.00% Annual Increases ✓ Tenant Paid Full Rent at ALL Locations Throughout Covid – Demonstrating Strength of Balance Sheet
Location Fundamentals ✓ Excellent Demographics | Population within a 5-Mile Radius Exceeds 186,000 ✓ Situated in an Extremely Dense Retail Corridor | Target, Lowe’s, Walgreens, Whole Foods, CVS, H.E.B, Office Max, McDonald’s and Many More ✓ Located Within a One-Mile Radius of The Vineyard Shopping Center | 63 Tenants ✓ Extremely Strong Traffic Counts | E Charles William Anderson Loop & Blanco Road 143,000 & 31,000 Average Vehicles Per Day, Respectively ✓ Surrounding Academic Presence | Four Academic Institutions Located Within a Three-Mile Radius | Total Combined Enrollment of Nearly 6,000 Students ✓ Affluent Suburb - Average Income of $174,000 In a Three-Mile Radius ✓ Prominent Medical Presence | Baptist Children’s Hospital at North Central is Located Within a Two-Mile Radius | Approximately 430 Beds ✓ Within 15-Miles of Downtown San Antonio, Texas ✓ Texas Has No State Income Tax
About The Tenant / Brand ✓ Guidepost Montessori is the Largest Montessori Operator in the United States – 76 Locations and Growing, Plans to be Over 100+ In 2 Years ✓ Higher Ground Education, the Parent Company of Guidepost Montessori, is Based in Lake Forest, California ✓ Learn Capital, the Largest Venture Capital Group in the Educational Technology Space, is Higher Ground’s Lead Investor With $30 Million
Guidepost Montessori – San Antonio, TX 4 Higher Ground’s Key Initiatives & Response to COVID 19
• All 76 schools are now open for business
• Enrollment up 14% Since Pre-Covid!
• Quickly transitioned to their online curriculum, Family Framework Program; a virtual classroom with a dedicated Montessori teacher, 10,000 families have already signed up
• Higher Ground has paid FULL rent to landlords at all locations for March, April, May, June and July
• Higher Ground was able to generate revenue throughout COVID by providing enrollment to children of essential workers across the country
• Expansion Opportunities and Growing Brand Awareness: Higher Ground has used this period to grow their national footprint and acquire competitors as more operators become distressed, creating opportunity to draw customers and quickly drive enrollment growth Investment Highlights PRICE: $7,773,664| CAP Rate: 6.25% | NOI: $485,854
PROPERTY DESCRIPTION RENT SCHEDULE Property Guidepost Montessori Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 1623 N Loop 1604 W Year 1 $485,854 $40,488 - City, State, ZIP San Antonio, TX Year 2 $495,571 $41,298 2.00% Total Building Size (SF) +/- 1,400 Year 3 $505,483 $42,124 2.00% Land Area 1.40 Acres Year 4 $515,592 $42,966 2.00% Type of Ownership Fee Simple Year 5 $525,904 $43,825 2.00% THE OFFERING Year 6 $536,422 $44,702 2.00% Purchase Price $7,773,664 Year 7 $547,151 $45,596 2.00% CAP Rate 6.25% Year 8 $558,094 $46,508 2.00% Net Operating Income $485,854 Year 9 $569,255 $47,438 2.00% LEASE SUMMARY Year 10 $580,641 $48,387 2.00% Tenant Guidepost A LLC Year 11 $592,253 $49,354 2.00% Original Lease Term 20 Years Year 12 $604,098 $50,342 2.00% Guarantor Corporate - Higher Ground Education, Inc Year 13 $616,180 $51,348 2.00% Rent Commencement 11/9/2020 Year 14 $628,504 $52,375 2.00% Lease Expiration 11/19/2040 Year 15 $641,074 $53,423 2.00% Lease Term Remaining 20 Years Lease Type Modified (NNN) Year 16 $653,896 $54,491 2.00% Structure Landlord Responsible Year 17 $666,973 $55,581 2.00% Roof Tenant Responsible Year 18 $680,313 $56,693 2.00% Option to Renew Three (3), Five (5)-Year Options Year 19 $693,919 $57,827 2.00% Year 20 $707,798 $58,983 Representative2.00% Photo
- Glen Kunofsky and other members of the selling entity, Exclusive Listing Agents, are part fee owners of this property. They are licensed real estate sales people for Marcus and Millichap in the State of New York. Guidepost Montessori – San Antonio, TX 6 Tenant Overview About Higher Ground Education Higher Ground Education’s mission is to modernize and mainstream the international Montessori movement, and thereby enable children across the world to realize their human potential as knowledge-guided, value-oriented, efficacious beings, so that they experience, undiluted and unimpeded, the joyous process of growing into successful adults.
Higher Ground Education was founded by a small team of impassioned educators and business leaders — skilled operators who had spent their early careers creating and scaling one of the most high-quality, high-fidelity Montessori school networks in the world. For many years the team devoted itself to developing, testing, refining, and putting into practice the resources, systems, infrastructure, and pedagogical leadership required to achieve Montessori “at scale,” and at its pinnacle had created a network of over 40 schools across both coasts of the United States.ABOUT FRIENDLY’S
AndFounded yet, thein pace1935 of growthin Springfield, was not fastMassachusetts, enough. The impactFriendly's was notIce widespreadCream, enough.LLC was We helped create, from small beginnings, a group of schools of which we were truly proud. Wecreated had learnedby brothers firsthand theCurtis incredibleand Prestleyimpact of properBlake educationat the height on the soulof theof theGreat child and the family. But these accomplishments, far from slaking our missionary thirst, served only to increase it. It became necessary to climb out of the box we had built around ourselves and reimagine the problem from scratch. It was at this moment that Higher Ground EducationDepression wasand born:has a momentsince enjoyed both of83 renewedyears asseekingAmerica's and ofbeloved breakthroughice cream discovery.brand. Friendly’s is a vertically integrated, ice cream-centric, restaurant chain with an Iniconic additionbrand to owningname, andserving operatingsignature schoolssandwiches, around the world,burgers Higherand Groundice cream will dessertsalso seek to develop an international platform that sources, secures, and develops back-end support toin allfriendly, Montessorifamily-inspiredrestaurants schools andas welleducators.as offering From helpinga wide existingvariety schoolof packaged owners overcomeice perennial challenges to supporting enterprising teachers and parents who wish to startcream newand schools,other fromfrozen deliveringtreats leadershipin retail stores trainingsacross and Americaprofessional. Currently, developmentthere workshopsare to helping teacher training centers strengthen their operations and expand their studenta total base,of from221 developingneighborhood customizedstores softwarethroughout tools tothe facilitatingNortheast accessand to realseveral estate and construction partners, Higher Ground will seek to create a technology-enabled, professionalSoutheastern “preparedstates, environment”112 are company that engagesoperated the thousandswhile of109 Montessoriare franchised entrepreneurs. and organizations world round. Together with its broad franchise base, the company has system-wide restaurant Montessorilevel sales wroteof $266 thatM “a. Incalm2016 serene, Friendly’s child, attachedwas acquired to reality,by beginsDean toFood achieveCompany, his elevationa through work.” We at Higher Ground will assist educators to pursue such elevation in and through their own work, in pursuit of a new tomorrow of children and adults who know the serenity of self-confidence, who find their sense of worth in work well done, who experienceleading food the andjoy ofbeverage solving problemscompany andand thethe goodwilllargest of processormutual respect.and Ourdirect dream-to-store and ambition is to bring the educational establishment, and through it the children of the world, todistributor that higherof groundfresh whichflued consistsand other in andairy elusive,case asproducts-yet unrealizedin the promise:United Statesa mainstream,. Dean sweepingly large, widely studied and widely implemented international Montessori movement.Foods Company has continued to produce Friendly’s ice cream out of the facility in Wilbraham, Massachusetts that for over 45 years has produced Friendly’s “Higherpopular Groundpackaged is oneice ofcream, our breakoutfrozen portfoliodessert companiesproducts, including—a hyper-singlescaling,-serve tech-enabled, high-end, global Montessori-inspired school operator” –sundaeLearn Capital*cups, cakes and rolls, along with ice cream for Friendly’s restaurants. With *Learnover 220 Capitallocations, is the nationsFriendly’s largestdistributes venture capitalproducts groupin in overthe education8,000 retail technologylocations space. across the United States, and has seen 105% growth in the retail business over the past five years. For the future, Friendly’s has plans for new food and ice cream concepts, as well as enhanced buildings and service channels.
Guidepost Montessori – San Antonio, TX 7 Recent Sales Comparables
Address City State Rent Square Feet Sale Price Sale Date Cap Rate Lease Term Status 9945 SW Beaverton Hillsdale Hwy Beaverton OR $231,378.00 6,000 $3,761,000.00 1/6/2020 6.15% 20 years Closed 1450 63rd St Emeryville CA $646,959.00 12,000 $9,800,000.00 11/7/2019 6.60% 17 years Closed 13251 Woodland Park Rd Herndon VA $277,620.00 7,014 $4,200,000.00 8/12/2019 6.61% 20 Years Closed 2006 Sun Chase Blvd Cedar Park TX $176,225.56 5,090 $2,667,000.00 1/28/2020 6.61% 20 years Closed 7508 Eldorado Pkwy McKinney TX 239,850.00 8,815 $3,615,000.00 10/8/2019 6.63% 17.5 years Closed 5051 Ace Ln Naperville IL $309,281.00 9,897 $4,530,000.00 12/13/2019 6.83% 20 years Closed 42945 Waxpool Rd Ashburn VA $775,890.00 21,189 $11,100,000.00 8/14/2019 6.99% 20 Years Closed 3017 Polar Ln Cedar Park TX $412,526.00 14,462 $5,900,000.00 1/14/2020 6.99% 20 years Closed 1004 Laurel Oak Rd Vorhees NJ $198,000.00 13,092 $2,828,571.43 12/5/2019 7.00% 20 years Closed 3320 Hollywood Blvd Hollywood FL $335,132.00 13,400 $4,775,000.00 5/24/2019 7.02% 20 years Closed 1530 N Damen Ave Chicago IL $637,500.00 13,096 $9,000,000.00 9/21/2018 7.08% 20 years Closed Subject Property *
*Updated school count is 76 , and 8 International Locations
Surrounding Area Property Address: 1623 N Loop 1604 W, San Antonio, TX
36 Hole Golf Course
Vineyard Ranch Concordia Lutheran Church Elementary VINEYEARD SHOPPING CENTER 3,000+ Members 800+ Students
ADTC: 143,000
Montessori School of San Antonio 350 Students
Guidepost Montessori – San Antonio, TX 12 Surrounding Area Property Address: 1623 N Loop 1604 W, San Antonio, TX
VINEYEARD SHOPPING CENTER
Guidepost Montessori – San Antonio, TX 13 Location Overview Property Address: 1623 N Loop 1604 W, San Antonio, TX
This investment property is situated along E Charles William Anderson Loop, which is the outer most loop that circles the city of San Antonio. This section of the E Charles William ADTC: 31,000 Anderson Loop experiences over 143,000 vehicles per day on average. Blanco Road also intersects with the E Charles William Anderson Loop, bringing an additional 31,000 vehicles per day into the immediate area. The subject investment property benefits from being located in a highly populated area. There are more than 65,000 people residing within a three-mile radius of this property and more than 186,000 reside within a five-mile radius. Furthermore, these figures are projected to increase in the coming years. This investment property benefits from being in a very affluent area, the average income within a one-mile radius of this property is greater than $174,000.
The Guidepost Montessori School benefits from being well-positioned near a large amount of housing communities and schools. The subject property is located within a three-mile radius of four academic institutions, including the Ronald Reagan High School and San Antonio Christian School. All four academic institutions have a combined total enrollment of nearly 6,000 students. ADTC: 143,000 Furthermore this investment property is near a highly dense retail corridor consisting of national and local tenants, shopping centers, and medical institutions. Major national tenants include: Target, Whole Foods, Lowe’s, Walgreens, H.E.B, CVS, McDonald’s, Office Depot and so many more. The Vineyard Shopping Center is also located within a one-mile radius and has over 63 additional tenants. Additionally this Guidepost Montessori property benefits from a prominent local medical presence. The Baptist Children’s Hospital at North Central, a state-of-the-art medical facility with approximately 430 beds, is located within a two-mile radius.
San Antonio, a modern city with a distinct Hispanic influence, is the third largest city in Texas and has grown to become the seventh largest in the United States. Most of the downtown area is attractive, with modern skyscrapers intermingled with historic sites (including the Alamo and the Spanish Governors Palace). The Paseo del Rio, or River Walk, contains shops and sidewalk cafes along the San Antonio River, and downtown entertainment is lively. Although the city has a laid-back character, there is a substantial business community that includes the headquarters of SBC Communications (AT&T), Valero Energy, Tesoro Petroleum (oil and gas), Clear Channel Communications and a strong banking and financial presence. Future job growth projections are strong. The South Texas Medical Center is one of the largest in the state, with a substantial medical and biotech research component. San Antonio has all of this and more to offer. Guidepost Montessori – San Antonio, TX 14 Local Map Property Address: 1623 N Loop 1604 W, San Antonio, TX
Guidepost Montessori – San Antonio, TX 15 Regional Map Property Address: 1623 N Loop 1604 W, San Antonio, TX
TEXAS
Guidepost Montessori – San Antonio, TX 16 Demographics Property Address: 1623 N Loop 1604 W, San Antonio, TX 1 Mile 3 Miles 5 Miles POPULATION 5 Miles 2025 Projection 7,434 66,025 190,861 2020 Estimate 7,646 65,115 186,984 2010 Census 7,217 58,861 168,039 2000 Census 3,991 39,387 120,884 3 Miles INCOME Average $176,410 $145,817 $118,859 Median $122,649 $100,661 $79,602 1 Mile Per Capita $69,510 $58,140 $50,629
HOUSEHOLDS 2025 Projection 3,035 26,883 82,628 2020 Estimate 3,013 25,936 79,578 2010 Census 2,811 23,053 70,454 2000 Census 1,339 14,765 49,769
HOUSING 2020 $340,825 $300,652 $264,730
EMPLOYMENT 2020 Daytime Population 6,977 67,216 189,504 2020 Unemployment 1.80% 1.68% 2.16% 2020 Median Time Traveled 26 Mins 26 Mins 26 Mins
RACE & ETHNICITY White 85.72% 83.09% 79.87% Native American 0.07% 0.10% 0.10% African American 2.73% 3.25% 4.44% Asian/Pacific Islander 6.62% 6.61% 5.57%
Guidepost Montessori – San Antonio, TX 17 Market Overview City: San Antonio | County: Bexar | State: Texas San Antonio officially the City of San Antonio, is the seventh-most San Antonio, Texas populous city in the United States, and the second-most populous city in both Texas and the Southern United States, with 1,547,253 residents in 2019.
San Antonio has a diversified economy with a gross domestic product of approximately $96.8 billion. This ranks the city fourth in Texas and 38th in the United States. San Antonio's economy focuses primarily on military, health care, government-civil service, financial services, oil and gas, and tourism. Within the past twenty years, the city has become a significant location for American-based call centers and has added a sizable manufacturing sector centered around automobiles. Over twenty million tourists visit the city and its attractions every year, contributing substantially to its economy, primarily due to The Alamo and the River Walk. The Henry B. Gonzalez Convention Center alone hosts over 300 events annually with more than 750,000 convention delegates from around the world. Tourism provided over 130,000 jobs, and it had an economic impact of $13.6 billion in the local economy. The city of San Antonio received $195 million in the same year from the hospitality industry, with revenues from hotel occupancy tax, sales taxes and others. San Antonio is the headquarters of six Fortune 500 companies: Valero Energy, USAA, iHeartMedia, NuStar Energy, and CST Brands, Inc. H-E-B, the 13th-largest private company in the U.S. is also based in San Antonio.
Guidepost Montessori – San Antonio, TX EXCLUSIVE NET LEASE OFFERING
TX Broker of Record: Tim Speck Division Manager, Texas P: #9002994