Kindercare | Puyallup, WA | TIC

Executive Summary

  • All cash tenant in common offering
  • Brand new Kindercare with 15 year lease
  • 10% rent increases every 5 years
  • Year 1 cash on cash return of 5.93%*
  • 10 year cash on cash return of 6.23%*
  • Sponsor (TerraForm) retaining 15% ownership

*Assumes a 7.00% fee is paid to a securities rep. Buyers without a rep will receive higher yield.

Marketing Overview

Puyallup is becoming an increasingly popular commuter city due to its low cost of living and easy access to mass transit.  Puyallup is currently the top boarding location for the “Sounder” train which provides rail service to Tacoma, Seattle, and Everett.  Since the 2010 Census, the population of Puyallup has grown by 20%

1 mile 3 mile 5 mile
 Population 1,663 78,746 177,424
 Annual Population Growth  1.99% 2.00% 1.70%
 Households  605 25,573 61,358
 Average HH Income  $91,785 $94,529  $87,371
 Median HH Income  $72,776 $80,658 $74,323
35 Miles South of Seattle
23% Projected Population Growth Next 10 Years
$94K  Average Household Income


  • 17419 Canyon Parkway E Puyallup, Washington
  • Part of the Frederickson Town Center project


  • McDonald’s
  • IHOP
  • Valvoline
  • America’s First Credit Union


  • 176th Street E. ~45,000 VPD
  • Canyon Road ~ 23,400 VPD


  • New Construction
  • 13,324 SF childcare center
  • Single tenant facility
  • 15 Year Lease Term
  • NNN Lease Structure
  • B3 Moody’s Credit Rating
  • 10% Rent Escalations Every 5 Years
  • 1,500 Tenant Locations
  • $1.7 B 2019 Project Revenue

Tenant Overview

Based in Portland, OR, KinderCare Education LLC is a large scale for-profit provider of child-care and education services in the United States. The company operates approximately 1,500 care centers with a licensed capacity of over 185,000 children. The company is owned by Partners Group. Revenue for the company is estimated to be $1.7 billion in 2019.1 KinderCare is the most accredited provider in early childhood education. Close to 100% of KinderCare centers are accredited through organizations like NAEYC, the nation’s leader in preschool accreditation.2 The day care industry is highly fragmented. KinderCare is the largest forprofit child care and early childhood education provider in the United States and holds the highest market share at 2.9%.3 The lease is guaranteed by KUEHG Corp. As of August 2018, KUEHG held a B3, stable credit rating with Moody’s.

  1. IBISWorld Industry Report 62441, Day Care in the US
  3. IBISWorld Industry Report 62441, Day Care in the US

Due Diligence Information

DrawingsIconArchitectural Drawings
PermitIconBuilding Permit
Civil DrawingsCivil Drawings
Construction ContractConstruction Contract
FinanceFinancial Projections
Moody's Credit ReportsGuarantor Moody's Credit Reports
IBIS Industry ReportIBISWorld Industry Report


6770 South 900 East, Suite 102
Salt Lake City, UT 84047

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