BEAVERTON
3 PROPERTY SINGLE-TENANT
HILLSBORO NNN CHILDCARE PORTFOLIO
EXCLUSIVELY LISTED BY
RYAN O'LEARY REBECCA LIDDELL, CCIM, MAI 503.221.2294 503.221.2279 [email protected] [email protected]
NNNPDX.com
GRESHAM 01 INVESTMENT SUMMARY
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 2 PORTFOLIO HIGHLIGHTS
$3,741,000 PORTFOLIO PRICE 7.88% CAP RATE 3 # OF LOCATIONS $208 PRICE / SF 100% OCCUPANCY NNN LEASE TYPE INVESTMENT $294,965 TOTAL NOI SUMMARY 6,000 AVERAGE SIZE (SF)
INDIVIDUAL PROPERTY PRICING THE OFFERING new ownership, under Kids The offering presents three net Incorporated Learning Centers, Cap Rate Price leased childcare properties in the and in 2015 expanded to include Portland metro area, providing the Gresham location. Beaverton Kids Incorporated 7.00% $1,520,000 investors the opportunity to acquire desirable West Coast investment All leases are NNN, with Landlord Hillsboro Care a Lot 7.00% $1,447,000 properties with a stable, Amazon- responsible for structure and roof. Gresham Kids Incorporated 8.00% $1,028,000 proof tenant. All three properties underwent very recent improvements, including Total Individual Pricing 7.38% $3,995,000 The properties were originally roof, parking lot, siding, awnings, constructed in the mid-1980’s as and more! Tenant pays all other Discounted Portfolio Pricing 7.88% $3,741,000 build-to-suit Kindercare childcare expenses directly, including locations. In 2011, the Beaverton property taxes, insurance, repairs/ and Hillsboro businesses underwent maintenance and utilities.
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 3 KIDS KIDS INCORPORATED INCORPORATED
CARE A LOT CHILDCARE BEAVERTON GRESHAM PORTLAND
HILLSBORO
N
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 4 INVESTMENT HIGHLIGHTS
FULLY LEASED three location childcare portfolio in the greater Portland, OR MSA area. The properties can be purchased as a portfolio or individually.
RECENT CAPITAL IMPROVEMENT project completed to each property by Joseph Hughes Construction include new roofs, parking lots, siding, awnings, and more as needed.
SERVICE-ORIENTED, E-COMMERCE PROOF tenant.
FLEXIBILITY OF OWNERSHIP childcare properties are purchased by owner-operators approximately 50% of the time in the Portland metro market at market pricing, hedging investor’s risk.
ALL THREE LOCATIONS currently at or near enrollment capacity and forecasted to stay full. The Hillsboro location consistantly has a waiting list.
NNN LEASE STRUCTURE; landlord only responsible for roof and structure. Tenant pays all other charges directly.
DEMOGRAPHICS reflect high population density for both owner-occupied an renter-occupied housing.
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 5 2019 CAPITAL IMPROVEMENTS
ALL THREE PROPERTIES underwent over $200K in recent improvements including siding repair, new paint, newly paved parking area with restriping, and landscaping
RE-SECURED fencing around play area
CLEANED crack-filled and seal coated front lot and play area
BEAVERTON $60,480 in recent capital improvements
HILLSBORO $70,724 in recent capital improvements
GRESHAM $73,181 in recent capital improvements
GRESHAM LOCATION received a new roof within the last 5 years, as well as new interior flooring in 2019
NEW ROOFING to Hillsboro and Beaverton locations in 2019 Transferable Roof Warranties
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 6 02 ABOUT THE TENANT
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 7 Kids“ Incorporated Learning Centers understand that you only get one childhood, and we plan to make it the best childhood possible. ”
ABOUT THE TENANT 3 95%
Learning Center in Beaverton, LOCATIONS AVERAGE ENROLLMENT ABOUT THE TENANT Oregon. Due to the tremendous Kids Incorporated Learning Centers success in both locations, Ms. have been serving the community Thomas expanded her operations for nearly 10 years under the to include the Gresham location in philosophy of bringing the highest 2015. The business has a family- quality of care to parents at the most centric model. Mistee's two 351 NNN affordable costs. daughters are general managers, raising their own children in the Starting in 2011, Mistee Thomas program. Tenant financials will TENANT PAYS ALL TAXES, TOTAL CAPACITY LICENSED opened Care A Lot Childcare in be made available to qualified UTILITIES, INSURANCE, R&M Hillsboro, and Kids Incorporated investors.
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 8 03 PROPERTY OVERVIEWS
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 9 KIDS INCORPORATED - BEAVERTON
18425 NW Walker Rd Address Cap Rate 7.00% RENT SCHEDULE Beaverton, OR Annual Tenant Since 2011 Rent Thru Monthly Rent Annual Rent Increase Asking Price $1,520,000 Current Term Expiration Oct 31, 2027 Oct 2020 $8,864.67 $106,376.04 5.00% Price/SF $253 # Lease Years Remaining 8 Oct 2021 $9,307.90 $111,694.80 5.00% Net Operating Income $106,376 Net Leasable Area (NLA) 6,000 Oct 2022 $9,555.00 $114,660.00 2.65% Annual Rent/SF $17.73 Oct 2023 $9,805.00 $117,660.00 2.62% 5% / Year thru Oct 2021 Site Size 0.68 Acres Rent Escalations 3.14% annual average thru Oct 2024 $10,055.00 $120,660.00 2.55% remainder of term Year Built 1984
Parking Ratio 3.83 / 1,000 SF Oct 2025 $10,305.00 $123,660.00 2.49%
Oct 2026 $10,550.00 $126,600.00 2.38%
Oct 2027 $10,805.00 $129,660.00 2.42%
Annual Average 3.14%
33,260 33,260 PER DAY
NW 185TH AVE $106,376 NET OPERATING INCOME
NW WALKER RD 5% / YR RENT ESCALATIONS THRU 2021
14,625 PER DAY 121 KIDS LICENSE CAPACITY
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 10 KIDS INCORPORATED - BEAVERTON
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 11 REGIONAL MAP
JANTZEN BEACH SHOPPING COLUMBIA RIVER DEMOGRAPHICS CENTER
1 Mile 3 Miles 5 Miles
Population 15,338 67,506 132,827 PORTLAND WILLAMETTE RIVER STREETS OF JAPANESE TANASBORNE Households 6,513 26,742 51,022 GARDEN
Families 3,634 16,980 33,580 LLOYD CENTER MALL Average Household Size 2.32 2.51 2.59 E IL PORTLAND SUBJECT M 1 Owner Occupied Housing 2,624 13,447 28,435 PROPERTY Units BEAVERTON S E IL Renter Occupied Housing M 3,889 13,295 22,587 3 Units
S E Median Age 32.6 32.4 33.1 IL M 5 WASHINGTON SQUARE MALL MILWAUKIE
TIGARD
LAKE OSWEGO
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 12 BEAVERTON NEIGHBORHOOD AERIAL
11 MI Portland
TANASBOURNE TOWN CENTER
THE STREETS OF TANASBOURNE NE STUCKI AVE
NE CORNELL RD TANASBOURNE VILLAGE NE 185TH AVE
SUNSET SQUARE
SUBJECT PROPERTY NE AMBERGLEN AVE
NE WALKER RD 30,152 Daily
15,156 Daily N
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 13 CARE A LOT CHILDCARE - HILLSBORO
1771 SE Minter Bridge Rd RENT SCHEDULE Address Cap Rate 7.00% Hillsboro, OR Annual Tenant Since 2011 Rent Thru Monthly Rent Annual Rent Increase Asking Price $1,447,000 Current Term Expiration Jan 31, 2027 Jan 2020 $8,865.78 $106,389.36 5.00% Price/SF $241 Jan 2021 $9,309.07 $111,708.84 5.00% $106,389 increasing to # Lease Years Remaining 7+ Net Operating Income $111,708 in Feb 2020 Net Leasable Area (NLA) 6,000 Jan 2022 $9,555.00 $114,660.00 2.64% Annual Rent/SF $17.73 Site Size 0.80 Acres Jan 2023 $9,805.00 $117,660.00 2.62% 5%/Year thru Jan 2021 Rent Escalations 3.14% annual average thru Year Built 1984 Jan 2024 $10,055.00 $120,660.00 2.55% remainder of term Parking Ratio 3.67 / 1,000 SF Jan 2025 $10,305.00 $123,660.00 2.49%
Jan 2026 $10,550.00 $126,600.00 2.38% AT CAPACITY WITH WAITING LIST. Jan 2027 $10,805.00 $129,660.00 2.42%
Annual Average 3.14%
29,300 SE TUALATIN VALLEY HWY PER DAY
$106,389 NET OPERATING INCOME
10,405 10,405 PER DAY 5% / YR RENT ESCALATIONS THRU 2021
116 KIDS LICENSE CAPACITY
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 14 SE MINTER BRIDGE RD CARE A LOT CHILDCARE - HILLSBORO
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 15 REGIONAL MAP
JANTZEN BEACH SHOPPING HILLSBORO CENTER DEMOGRAPHICS AIRPORT
1 Mile 3 Miles 5 Miles
ES PORTLAND Population 15,338 67,506 132,827 IL WILLAMETTE RIVER M STREETS OF JAPANESE 5 TANASBORNE GARDEN
Households 6,513 26,742 51,022 ES IL M 3 Families 3,634 16,980 33,580
EHILLSBORO IL M PORTLAND Average Household Size 2.32 2.51 2.59 1
BEAVERTON Owner Occupied Housing Units 2,624 13,447 28,435 SUBJECT PROPERTY Renter Occupied Housing Units 3,889 13,295 22,587
Median Age 32.6 32.4 33.1 WASHINGTON SQUARE MALL
LAKE OSWEGO
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 16 HILLSBORO NEIGHBORHOOD AERIAL
20 MI Portland
SE 32ND AVE
HILLSBORO TOWN CENTER
SE CYPRESS ST
SE TUALATIN VALLEY HWY
SUBJECT PROPERTY SUNSET ESPLANADE
SE MINTER BRIDGE RD 28,559 Daily
10,304 N Daily
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 17 KIDS INCORPORATED - GRESHAM
840 NE 181st Ave RENT SCHEDULE Address Cap Rate 8.00% Gresham, OR Annual Tenant Since 2015 Rent Thru Monthly Rent Annual Rent Increase Asking Price $1,028,000 Current Term Expiration Feb 15, 2023 Feb 2020 $6,850.00 $82,200.00 4.50% Price/SF $171 Feb 2021 $7,160.00 $85,920.00 4.53% $82,200 # Lease Years Remaining 3+ Net Operating Income Increasing to $85,920 Feb 2022 $7,480.00 $89,760.00 4.47% in Feb 2020 Net Leasable Area (NLA) 6,000
Annual Rent/SF $13.70 Site Size 1.00 Acre Feb 2023 $7,815.00 $93,780.00 4.48%
Rent Escalations 4.49%/Yr (average) Year Built 1985 Annual Average 4.49%
Parking Ratio 4.33 / 1,000 SF
$82,200 NET OPERATING INCOME NE PACIFIC CT
4.49% / YR RENT ESCALATIONS THRU 2023
32,902 32,902 PER DAY 114 KIDS LICENSE CAPACITY NE 181ST AVE NE 181ST
OPPORTUNITY ZONE
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 18 KIDS INCORPORATED - GRESHAM
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 19 REGIONAL MAP
DEMOGRAPHICS JANTZEN BEACH SHOPPING 1 Mile 3 Miles 5 Miles COLUMBIA RIVER CENTER ES IL M Population 21,758 64,659 126,401 5
Households ES 7,464 23,510 46,472 PORTLAND IL WILLAMETTE RIVER M JAPANESE 3 GARDEN Families 4,926 15,164 30,184
ILE LLOYD M Average Household Size 2.87 2.71 2.67 CENTER 1 MALL
Owner Occupied Housing Units 3,041 11,833 24,725 PORTLAND SUBJECT PROPERTY Renter Occupied Housing Units 4,423 11,677 21,747 GRESHAM
Median Age 31.4 33.5 34.4
MILWAUKIE
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 20 GRESHAM NEIGHBORHOOD AERIAL
13.6 MI Portland
18,733 Daily
HALSEY CROSSING
H.B. LEE MIDDLE SCHOOL 30,948 Daily SUBJECT PROPERTY
HARTLEY ELEMENTARY SCHOOL
N
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 21 PORTLAND RANKINGS
BEST PLACES FOR BUSINESS & CAREERS BEST FOODIE CITY IN AMERICA #1 − FORBES.COM #1 − TRUST FOR PUBLICLAND, 2018
ENERGY INFASTRUCTURE SAFEST PLACE TO LIVE #1 − US NEWS, 2018 #1 − RENTAL HOUSING JOURNAL, 2017
IN US FOR PUBLIC PARK SPENDING MOVING DESTINATION OF 2018 #1 − TRUST FOR PUBLIC LAND, 2018 #2 − UNITED VAN LINES, 2019
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 22 GROWING POPULATION EMPLOYMENT OREGON was the #2 moving destination in 2018 INVESTING IN PORTLAND for people moving from one state to another, Portland has the the 15th fastest growth rate of ULI 2018 Investment Prospects ranks Portland #2 according to a United Van Lines Study the nation's largest metro areas, at an increase of in the Pacific region 2.4% every three months PORTLAND has added 42,000 residents over IN 2018, at 5.2% Oregon personal income growth the last three years, an increase of 1.7%; above Portland MSA is expected to add 25,500 was above the national average of 4.1% national average additional jobs in 2018
PORTLAND ranked #6 on Business Insider's Top 50 PORTLAND ranked 19th in the nation in population Amazon is projected to add more than 2,000 new Best Places to Live in 2018 growth ahead of San Francisco, Boston, and jobs after breaking ground for new fulfillment New York City centers in North Portland and Troutdale PORTLAND MSA multifamily vacancy is below 4.85% MORE than 34% of Portland residents have a Event software company Cvent plans to hire 1,000 PORTLAND MSA is the 8th strongest rental market bachelor's degree or higher, above the national new employees through 2019 as part of a massive in the nation, per Axiometrics average of 28% expansion
PORTLAND’S current unemployment rate is 3.6%, PORTLAND MSA employment is at an all-time high, Oregon Health & Science University is projected a 42 year low employing ±1,190,400 workers to add 500+ jobs
3 PROPERTY SINGLE-TENANT NNN CHILDCARE PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 23 EXCLUSIVELY REPRESENTED BY
REBECCA LIDDELL, CCIM, MAI 503.221.2279 [email protected]
RYAN O'LEARY 503.221.2294 [email protected]
KIDDER.COM