Offering Memorandum Ladybird Academy

Representaive Photo
Offering Memorandum
Ladybird Academy
2400 East Highway 50 | Clermont, Florida 34711
Atlanta
Chicago
New York
Houston
Los Angeles
Miami
Phoenix
San Francisco
Tulsa
Confidential Disclaimer
This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you
solely for the purpose of your review of the commercial property located at 2400 East Highway 50 Clermont, Florida
34711 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of
evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person
without the express written consent of Stan Johnson Company (“Broker”).
By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained
herein and any other information you will be receiving in connection with this transaction, whether oral, written or in
any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in
whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as
soon as practicable together with all other materials relating to the Property which you may have received from SJC;
and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require
the prior written consent of SJC.
This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the
Property and any information obtained from SJC to assist interested parties in making their own evaluation of the
Property is offered on a no representation or warranty provision other than customary warranties of title and is sold
on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive.
This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the
convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors
with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by
prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon
SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the
Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in
any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other
kind whatsoever are made or intended and none should be inferred.
SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations,
express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format
of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction.
All summaries and discussions of documentation and/or financial information contained herein are qualified in their
entirety by reference to the actual documents and/or financial statements, which upon request may be made available.
The terms and conditions described herein are subject to change without notice.
This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a
solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not
constitute an offer of security. The investment described herein may be financed or withdrawn from the market,
without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from
any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to
request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or
more prospective investors at any time.
Page 2 Ladybird Academy | Clermont, Florida
Offered Exclusively By
Daniel Herrold | Senior Director
[email protected]
Kyle Davis | Analyst
[email protected]
David Annett | Analyst
[email protected]
In Association with:
Jason Long
FL License #BK3302956
Stan Johnson Company
6120 South Yale Avenue
Suite 813
Tulsa, OK 74136
P: 918.494.2690 | F: 918.494.2692
THE NET LEASE AUTHORITY®
Purchase Price $3,912,000
Cap Rate
Representaive Photo
7.50%
Investment Summary
Investment Highlights
Stan Johnson Company is pleased to offer for sale to
qualified investors a brand new Ladybird Academy located
in Clermont, Florida. Ladybird Academy combines preschool
early learning and education with high quality child care for
children ages 6 weeks through 12 years.
Growing Operation – Ladybird Academy is growing the
number corporately operated facilities and franchised
operations annually. Ladybird Academy was named Best
of Orlando in 2013 and 2014 by The City’s Magazine as a
premium childcare facility. They have expanded from Central
Florida into North and South Florida with 19 locations and
have a new facility opening in Texas.
The franchisee, Clermont LB, LLC, has been a consulting
partner of Ladybird Academy corporate since its beginning.
The Franchisee has assisted the company for several years,
primarily assisting in site selection for both corporate and
new franchise locations as part of the company’s growth
strategy. During the consulting relationship, the franchisee
was exposed to the service quality and professionalism of
Ladybird Academy and wanted to be a part of the success
as an operator.
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This property is in the middle of the growing Orlando,
Florida suburb community of Clermont. The property is
strategically located in the center of residential, retail, and
healthcare areas of the community.
Strong Real Estate Location - The site is located
adjacent to the major retail and medical office corridors
in the community. Also, there is high income residential
development near the location. Traffic counts on Highway 50
are approximately 56,000 VPD and Clermont has experienced
a 200% population growth in the past 10 years.
Strong Lease Economics - The subject property is 100%
leased to Ladybird Academy under a brand new Fifteen
(15) year absolute net lease with attractive 2% annual rent
increases. The lease features Three (3), Ten (10) year renewal
options.
Corporate Guarantee – Ladybird Academy is committed
to the success of every location under the Ladybird trade
name. Franchisees are toughly screened to meet corporate
standards. Franchisees receive strong support and oversight
from Ladybird Academy. Ladybird Academy backs the
franchisee real estate with a five year corporate guarantee.
Representaive Photo
Page 3 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Lease Abstract
Property Address
2400 East Highway 50
Clermont, Florida 34711
Type of Ownership
Fee Simple
Rent Schedule
Tenant Trade Name Ladybird Academy
Tenant
Clermont LB, LLC
Lease Guarantor
Lease Guarantor
Personal Guaranty (3 Principals)
5-Year Corporate Guaranty
Personal Guaranty (3 Principals)
5-Year Corporate Guaranty
Year
Rent Schedule
1
$293,384
2
$299,252
3
$305,237
4
$311,341
5
$317,568
6
$323,920
7
$330,398
Leased SF
+/- 12,400 SF
8
$337,006
Year Built
2014 - 2015
9
$343,746
Rent
Commencement
Date
March 1, 2015 (estimated)
10
$350,621
Lease Term
Fifteen (15) Years
Term Remaining
on Lease
11
$357,633
12
$364,786
13
$372,082
Fifteen (15) Years
14
$379,523
Increases
2% annually in Primary Term
15
$387,114
Expenses
Absolute NNN
Options
Financials
Page 4 Three (3), Ten (10) Year Options
with 2% annual increases
throughout.
Franchisee is to provide
tax returns and financial
statements annually.
Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Ladybird Academy Overview
Ladybird Academy® combines preschool early learning
and education with high quality child care for children
ages 6 weeks through 12 years.
Each Academy is purpose built in every way to provide
a bright and spacious setting with classrooms that are
fully equipped for each age range. Outside play areas are
designed with impact absorbing safety surfaces plus a
wide range of interesting play equipment for everyone.
Ladybird Academy meets center enrollment limits by
positioning itself as an accredited and award winning
childcare learning center.
Ladybird Academy believes children should be
encouraged to their maximum potential through a variety
of early learning experiences. Ladybird provides qualified,
caring teachers dedicated to the development of each and
every child. Ladybird offers a safe and secure environment
for healthy growth.
Ladybird Academy Offerings,
Awards
Accreditations
and
•
Provide personal, physical and intellectual
development.
•
Educational curricula including Abeka and Saxon
Math.
•
Ladybird Academy staff meets or exceeds state
credential requirements.
•
Centers are state of the art and include amazing
features.
•
Centers include Art Studios, Science Labs, Libraries,
Computer Labs & more.
•
Nutrition program ensures children receive fresh and
balanced meals daily
A.P.P.L.E and N.E.C.P.A: Ladybird holds accreditations
in A.P.P.L.E (Accredited Professional Preschool Learning
Environment) and N.E.C.P.A (the National Child Care
Association), who assess quality in adult and child
interaction and parent and community relationships
and who are dedicated to promoting high quality early
childhood learning programs across the country.
Ladybird Fact Sheet
Founded
2006
# of Corporate Locations
10
# of Franchisee Locations
9
Current Enrollment
200 - 220 per school
Tuition
$165 - $220 per week
depending on age
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GOLD SEAL: Ladybird Academy® holds the Gold Seal
award from the Dept of Children and Families which
acknowledges child care centers that are accredited by
national recognized agencies whose standards reflect
quality in the level of care and supervision.
BEST of City’s Magazine:
Best of Orlando 2014
Best of Orlando 2013
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Page 5 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Ladybird Academy Locations
Central Florida
1151 Rock Springs Road
Apopka
Florida
32712
2400 East Highway 50
Clermont
Florida
34711
204 Saxon Blvd
Debary
Florida
32713
185 Timacuan Blvd
Lake Mary
Florida
32746
470 E. Lake Brantley Drive
Longwood
Florida
32779
357 S. Avalon Park Blvd
Orlando
Florida
32828
3010 Hunter's Creek
Orlando
Florida
32837
10955 Lake Underhill Road
Orlando
Florida
32825
6809 Daisy Street
Orlando
Florida
32819
10485 Moss Park Road
Orlando
Florida
32832
14840 Wyndham Lakes Blvd Orlando
Florida
32824
282 State Road 434 West
Oviedo
Florida
32765
1650 Alafaya Trail
Oviedo
Florida
32765
700 Lake Forest Blvd
Sanford
Florida
32771
12144 Chase Road
Windermere
Florida
34786
1630 Avalon Road
Winter Garden Florida
34787
Subject
Property
Jacksonville, Florida
3840 Race Track Road
Ladybird Academy Nationwide Locations
Fruit Cove
Florida
32259
Coral Springs
Florida
33067
McKinney
Texas
75070
South Florida
5700 Creek Side Drive
Dallas, Texas
Independence Pkwy
Ladybird Academy 16 Locations throughout the Orlando area
Page 6 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Location Overview
Clermont is a city in Lake County, Florida, west of
Orlando. The population was 30,201 as of 2013. The
city is residential in character and its economy is
centered in retail trade, lodging, and food and beverage
establishments, which are tourism oriented. It is part of
the Orlando–Kissimmee–Sanford Metropolitan Statistical
Area.
Greater Orlando is best known for its globallyrecognized tourism industry that saw a record 59 million
visitors in 2013. This sector alone has an economic
impact of more than $50 billion. Famous attractions
include Walt Disney World Resort, SeaWorld and
Universal Studios.
Headquarters
Orlando serves as the headquarters for several
companies, including: Darden Restaurants, Tupperware
Brands Corp., American Automobile Association (AAA)
and Ruth’s Chris Steak House, among others.
International Business
Home to the U.S. operations of Germany’s Siemens
Energy, Japan’s Mitsubishi Hitatchi Power Systems, Spain’s
Indra Systems, Australia’s Adacel and many more. In total,
more than 150 international companies, representing
approximately 20 countries, have facilities in Orlando.
Education
Orlando is home to the University of Central Florida
(UCF), now the 2nd largest university in the country with
over $122 million in annual research; a #3 ranking on the
IEEE Patent Scorecard and a top ten incubator network.
The region is home to 35 post-secondary institutions.
Top Rankings
Orlando: “Top 10 City to start a business” (Entrepreneur magazine)
Orlando: #1 spot to grow a small business (Bizjournals)
Metro Orlando: “Number One City for Entrepreneurs”.
(Entrepreneur magazine)
Orlando: 4th “Best City for Business” in the large cities category.
(Inc. magazine)
Orlando: 9th fastest growing metro. (Forbes)
Metro Orlando: among the “Best Places for Business and Careers”.
(Forbes magazine)
Orlando: 4th most popular city, based on where people want to
live. (Pew Research Center)
Major Employers
Florida Citrus Tower - Circa 1960’s
# Employees
Walt Disney World Company
69,000
Adventist Health System / Florida Hospital
17,600
Universal Orlando (Comcast)
17,300
Orlando Health
14,310
Darden Restaurants Inc.
7,600
SeaWorld Parks & Entertainment
6,032
Lockheed Martin Corporation
5,774
Marriott International, Inc.
5,635
Westgate Resorts
5,323
Siemens
4,448
Rosen Hotels & Resorts
3,963
Wyndham Worldwide Corp.
3,509
Orlando-Kissimmee-Sanford
Orlando Skyline
Page 7 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Central Florida Area Map
Subject Property
ORLANDO
Downtown
Orlando
26 Miles
30
28
Mil
es
Page 8 Disney
World
M
ile
s
SeaWorld
Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
US-27 (31,169 VPD)
SOUTH LAKE
HOSPITAL
SANCTUARY
RIDGE GOLF
CLUB
Page 9 Ladybird Academy | Clermont, Florida
EAST RIDGE
HIGH SCHOOL
HANCOCK RD (15,407 VPD)
CITRUS TOWER BLVD (11,986 VPD)
E HIGHWAY 50 (55,626 VPD)
RESIDENTIAL
DEVELOPMENT
THE NET LEASE AUTHORITY®
Surrounding Tenants
Page 10 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Demographics
2400 E Highway 50 | Clermont, FL 34711
0 - 1 miles
%
0 - 3 miles
%
0 - 5 miles
%
Population
2019 Projection
5,290
45,072
76,191
2014 Estimate
4,752
40,777
69,222
2010 Census
4,307
37,218
63,444
2000 Census
1,336
14,075
25,576
222.39%
164.42%
148.06%
10.33%
9.56%
9.11%
2019 Projection
1,821
15,808
26,699
2014 Estimate
1,661
14,506
24,580
2010 Census
1,558
13,609
23,153
2000 Census
479
5,256
9,623
Growth 2000 - 2010
225.15%
158.94%
140.61%
Growth 2010 - 2014
6.65%
6.59%
6.16%
4,752
40,777
69,222
Growth 2000 - 2010
Growth 2010 - 2014
Households
2014 Est. Population by Single Classification Race
White Alone
3,149
66.27
28,980
71.07
51,694
74.68
776
16.33
5,934
14.55
8,698
12.57
21
0.44
177
0.43
281
0.41
261
5.49
1,738
4.26
2,593
3.75
4
0.08
29
0.07
63
0.09
Some Other Race Alone
334
7.03
2,234
5.48
3,299
4.77
Two or More Races
208
4.38
1,684
4.13
2,594
3.75
Black or African American Alone
American Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pacific Islander Alone
2014 Est. Average Household Income
$67,730
$66,856
$67,486
2014 Est. Median Household Income
$58,497
$54,707
$54,670
Page 11 Ladybird Academy | Clermont, Florida
THE NET LEASE AUTHORITY®
Daniel Herrold | Senior Director
[email protected]
Kyle Davis | Analyst
[email protected]
David Annett | Analyst
[email protected]
In Association with: Jason Long
FL License #BK3302956
Stan Johnson Company
6120 South Yale Avenue | Suite 813
Tulsa, OK 74136
P: 918.494.2690 | F: 918.494.2692