Cap Rate
6.65%
Year Built
2023
Leasable Area
10,960 SF
Term Remaining
±14 YRS
Property Type
Retail
LEAD LISTING AGENT
Email
chad.kurz@matthews.com
License No.
01911198 (CA)
Direct
+1 (949) 662-2252
Mobile
+1 (562) 480-2937
ADDITIONAL LISTING AGENT
INVESTMENT HIGHLIGHTS
- Long Term Passive Lease – Over 14 Years Remaining on NNN lease with minimal Landlord Responsibility
- Strong Enrollment Numbers – Despite only opening on 2/1/24, this location is already almost at student capacity. This is impressive as Childcare operators are not allowed to pre-enroll in the state Alabama. Strong enrollment directly correlates with the long term viability of the business and provides security to an investor. *Enrollment numbers can be shared with prospective Buyers upon execution of an NDA.
- 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
- 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.
Broker of Record
- Hutt Cooke
- License No. 000168807-0 (AL)
- (866) 889-0550
- Matthews Real Estate Investment Services, Inc
- 1600 West End,
Ste. 1500 Nashville, TN 37203