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

ADDRESS

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

CO-TENANTS

McDonald’s
IHOP
Valvoline
America’s First Credit Union

TRAFFIC COUNTS

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

BUILDING

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.