Tutor Time

5911 West Thunderbird Road, Glendale, AZ, USA

$10,644,000 · 7.90% · 4/2/2029 · NNN

Offering Memorandum

Exclusively Offered by

Niko Micin

Investment Analyst
[email protected]
206.210.5208

Ned Zivkovic

AGM Net Lease
[email protected]
(702) 321 - 7456

Bosko Stankovic

Investment Sales
[email protected]
646.416.2042

SALE PRICE: $10,644,000

CAP RATE: 7.90%

NOI: 825,339

LEASE EXPIRATION: April 2, 2029

OPTIONS: Two 5-year renewal options

ROFR: None

ESTOPPEL PERIOD: 10 business days

LOT SIZE: 1.99 Acres

BUILDING SIZE: 18,252 SF

YEAR BUILT: 2005

 

In association with:

Lisa Westcott

Sotheby’s International

AZ Lic.: SA54248000

The subject property is a super-sized 18,252 square foot Tutor Time located in Glendale, Arizona, within Maricopa County. Tutor Time has been successfully operating at this location for thirteen years, neighbored by a brand-new Chick-fil-A, a Fry’s Food and Drug Store, and Banner Thunderbird Medical centers comprising a dense retail, medical and educational corridor. Tutor Time is a subsidiary of Learning Care Group, Incorporated. Learning Care Group is a globally recognized institution with over 900 schools, 18,000+ educators, 130,000+ children, and 8 unique brands, including Everbrook, La Petite Academy, and Childtime Learning Centers making it one of the largest early education and childcare organizations in the United States. Tutor Time alone has 200 locations throughout the United States, Hong Kong, and Indonesia.

Tutor Time signed a 22-year lease with two 5-year renewal options. There are approximately 9 years remaining on the initial term of the lease. The lease is an absolute NNN providing investors with care-free ownership. The lease also has a favorable annual rental increase of 1.75% both through the initial term and the two options.

The subject property is located on the southwest corner of W Thunderbird Rd and 59th Ave, positioned on a signalized corner within a strong retail, medical, and educational corridor. The corridor is populated with countless national and regional tenants bringing significant traffic and interest to the area. Some of the major retailers include Safeway, Fry’s, a brand new high performing Chick-fil-A, and the Banner Thunderbird Medical Centers. The Banner medical facilities are a key lifeline to the area. Their acute-care facility is 890,000 SF on 33 acres of land after they recently completed a $290 million expansion project, adding a more spacious main lobby, a patient/family library, a heart and vascular center, state-of-the-art surgical suites, and a 200-bed patient tower (to accompany the 513 currently there). Over 2,900 employees service these facilities, making them one of the largest hospitals in the area.

Investment Highlights

  • ANNUAL INCREASES OF 1.75% – Throughout the firm term and options
  • HARD SIGNALIZED CORNER – SW corner of W Thunderbird Rd and 59th ave
  • HIGH TRAFFIC VOLUME – W Thunderbird Rd & N 59th Avenue have a combined ADT of over 69,000
  • ABSOLUTE NNN LEASE – Zero landlord responsibility
  • DENSE MEDICAL, EDUCATIONAL AND RETAIL CORRIDOR – within walking distance of Banner Thunderbird Medical Campus, Thunderbird Palus Medical Campus, Arizona Christian University, Arizona State University West campus, Pioneer Elementary School, Chick-Fil-A, Safeway, Firehouse Subs, Fry’s Food and Drug, FedEx Kinkos, Burger King, Wendy’s, Dunkin’ Donuts etc.
  • CORPORATE GUARANTY – From a reliable private tenant – Learning Care Group Inc.
  • US CHILDCARE INDUSTRY CONTINUES TO GROW and has combined annual revenues of +/- $20 Billion
  • IN EXCESS OF 1,500 CHILDREN – ages 0-9 within a 1-mile radius
  • LONG TERM TENANT – 13+/- years at location
  • BANNER THUNDERBIRD MEDICAL CAMPUS employs over 2,900 and has over 550 beds
  • ARIZONA CHRISTIAN UNIVERSITY has over 900 students – 17:1 student to faculty ratio
  • ARIZONA STATE UNIVERSITY  has over 50,000 students – $4.3 billion impact on the economy
  • LARGER BUILDING SF than average Tutor Time or daycare concept to accommodate the market
  • STRONG DEMOGRAPHIC PROFILE in a dense community: In excess of 15,000 residents
  • ABOVE AVERAGE HOUSEHOLD INCOME – 5,800 households with an average household income of over $76,000 within a 1-mile radius