Lease & Asset Strength

• Brand New Construction (2024) – Newly delivered, purpose-built facility with modern improvements and limited anticipated near-term capital expenditure requirements.
• Passive NNN Lease Structure – Triple-net lease format supports a low-management, passive ownership profile through limited landlord obligations.
• Corporate Guarantee – Lease is backed by the nation’s second-largest childcare provider, enhancing credit profile and income reliability.
• Contractual Rent Growth – Built-in 7.5% rent escalations every five years provide defined revenue growth and a meaningful hedge against inflation.

Tenant & Industry

• Long-Term Income Visibility – Approximately ±14.5 years of remaining lease term offers durable cash flow and long-term income security.
• Recession-Resistant Tenancy – Early childhood education is a needs-based use that has historically demonstrated resilience through economic cycles.
• Favorable Industry Demand Drivers – Rising dual-income household formation continues to support demand for childcare services.
• Proven National Operator – Tenant maintains an established operating platform, scalable national footprint, and demonstrated operating history.
• Nashville MSA Growth – The Nashville MSA remains one of the fastest-growing metro areas in the country, supported by sustained in-migration, employment expansion, and broad-based economic diversification.
• Strong Area Demographics – More than 120,861 residents live within a 5-mile radius, with the surrounding population expanding at an estimated 2.70% annually, reinforcing long-term consumer demand.