Xplor Preschool - Leander, TX

LEANDER, TX

PRICING & FINANCIAL ANALYSIS

XPLOR PRESCHOOL

FINANCIAL ANALYSIS

Xplor Preschool 906 Crystal Falls Parkway Leander, TX 78641

Offering Summary Price Cap Rate Net Operating Income

7.00% $363,324

PROPERTY DESCRIPTION

Year Built

$5,190,000

2010

Gross Leasable Area

16,297 SF

Lot Size

2.71 Acres

Annualized Operating Data Lease Summary

Year(s)

Commencement

Annual

Increase

15 Years

1-5

5/1/2016

$363,324

-

Lease Commencement

5/1/2016

6-10

5/1/2021

$399,656

10.00%

Lease Expiration

6/30/2031

11-15

5/1/2026

$439,622

10.00%

Remaining Term

14 Years

Option 1: 16-20

5/1/2031

$483,584

10.00%

NNN

Option 2: 21-25

5/1/2036

$531,943

10.00%

Option 3: 26-30

5/1/2041

$585,137

10.00%

Lease Type Roof & Structure Increases Options Options to Purchase

Tenant CPI Every 5 Years

Net Operating Income

MARKET OVERVIEW

Lease Term

$363,324

3 x 5 Year None

NOTE: Rent escalations every 5 years are based on the lesser of 10% or CPI

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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TENANT INFORMATION

XPLOR PRESCHOOL

Company Summary Company Ownership Number of Locations Headquarters Website

Xplor Preschool Nobel Learning Communities, Inc. 16+ 31 Years

PROPERTY DESCRIPTION

Years In Business

West Chester, PA www.xplortoday.com

Tenant Summary Company Ownership Number of Locations Years In Business Headquarters Website

Nobel Learning Communities, Inc.

MARKET OVERVIEW

Nobel Learning Communities, is a network of more than 200 private schools in 19 states and the District of Columbia, with a commitment to outstanding preschools and K-12 schools. Nobel Learning Communities also operates Laurel Springs School, an accredited private online school, offering challenging programs for students in kindergarten through twelfth grade. Nobel Learning Communities is accredited by AdvancED™.

FINANCIAL ANALYSIS

Recognizing the importance of giving every child the opportunity to discover their world, Xplor partners with families to create a caring educational community that enriches the childhood journey. Xplor operates 16 schools for children from birth to 12 years in the Austin, Ft. Worth, Dallas and Houston areas.

Private 200+ 43 Years West Chester, PA www.nobellearning.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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INVESTMENT HIGHLIGHTS

XPLOR PRESCHOOL

FINANCIAL ANALYSIS

• Long-Term Absolute NNN Lease – Zero Landlord Responsibility • Strong Corporate Guarantee

PROPERTY DESCRIPTION

• 10% Rent Escalations Every 5 Years in Primary Term • Preschools & Day Cares are a $48 billion Dollar Industry, Internet and Recession-Proof and Provide Essential Services to Working Families • Highly Desirable Suburb of Austin - One of The Fastest Growing Metros in the Nation • Surrounding National Retailers Include 7-Eleven, Walmart, Lowes, McDonalds, Walgreens, and Many Others

MARKET OVERVIEW

• Population Expected to Increase by 17% from 2016 to 2021

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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AERIAL MAP

XPLOR PRESCHOOL

FINANCIAL ANALYSIS

US 3 -18 A

Pleasant Hill Elementary School

US

YS CR

D DA AG

TA L

FA L

LS

PK

W

Y

PROPERTY DESCRIPTION

3 -18

SB RD

MARKET OVERVIEW

Block House Creek Elementary School

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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LOCAL MAP

XPLOR PRESCHOOL

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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REGIONAL MAP

XPLOR PRESCHOOL

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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MARKET SUMMARY

XPLOR PRESCHOOL

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

AUSTIN, TX

Austin is considered to be a major center for high tech.

The region’s rapid growth has led Forbes to rank the Austin metropolitan area Number One among all big cities for jobs for 2012 in their annual survey. The Wall Street Journal Marketwatch ranked the area Number One for growing businesses. By 2013, Austin ranked No. 14 on Forbes’ list of the Best Places for Business and Careers (directly below Dallas, No. 13 on the list). As a result of the high concentration of high-tech companies in the region,

Austin was strongly affected by the dot-com boom in the late 1990s and subsequent bust.

Austin’s largest employers include the Austin Independent School District, the City of Austin, Dell, the U.S. Federal Government, Freescale Semiconductor (spun off from Motorola in 2004), IBM, St. David’s Healthcare Partnership, Seton Family of Hospitals, the State of Texas, the Texas State University, and the University of Texas at Austin. Other high-tech companies with operations in Austin include 3M, Apple, Hewlett-Packard, Google, Qualcomm, Inc., AMD, Applied Materials, Cirrus Logic, ARM Holdings, Cisco Systems, Electronic Arts, Flextronics, Facebook, eBay/PayPal, Bioware, Blizzard Entertainment, Hoover’s, Intel Corporation, National Instruments, Rackspace, RetailMeNot, Rooster Teeth, Spansion, Buffalo Technology, Silicon Laboratories, Xerox, Oracle, Hostgator, Samsung Group, HomeAway, and United Devices.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

Austin, Texas is the capital of Texas and the seat of Travis County. Located in Central Texas, Austin is the 11th-most populous city in the United States and the fourth-most populous city in Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006. Austin is also the second largest state capital in the United States.

Austin had a July 1, 2013 population of 885,400 (U.S. Census Bureau estimate). The city is the cultural and economic center of the Austin–Round Rock metropolitan area, which had an estimated population of 1,883,051 as of July 1, 2013.

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DEMOGRAPHIC SUMMARY

XPLOR PRESCHOOL

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the current year population is 100,362. The rate of change since 2000 was 154.23%. The five-year projection for the population in the area is 118,347 representing a change of 17.92% from 2016 to 2021. In 2016, the population was 49.1% male and 50.9% female.

The median age in this area was 34.1, compared to U.S. median age of 38.0.

Households In 2016 there were 33,845 households in your selected geography. The number of households has changed by 159.95% since 2000. It is estimated that the number of households in your area will be 39,844 five years from 2016, which represents a change of 17.72% from the current year. The average household size in your area is 2.96 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography is $78,137, compare this to the Entire US average which is currently $54,149.

It is estimated that the median household income in your area will be $85,775 five years from 2016, which represents a change of 9.78% from the current year.

The current year per capita income in your area is $31,955, compare this to the Entire US average, which is $29,472. The current year average household income in your area is $94,535, compare this to the Entire US average which is $77,008.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 79.4% White, 4.4% Black, 0.6% Native American and 4.6% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up ##.#% of the current year population in your selected area. Compare this to the Entire US average of 17.9%.

MARKET OVERVIEW

Housing In 2016, there were 25,449 owner occupied housing units in your area and there were 8,397 renter occupied housing units in your area. Median home value in the area is $192,418, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 49,426 employees in your selected area, this is also known as the daytime population. Currently 72.6% of employees are employed in white-collar occupations in this geography, and 12.7% are employed in blue-collar occupations. In 2016, unemployment in this area is 3.7%.

Demographic data Š 2016 esri This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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DEMOGRAPHIC STATISTICS

XPLOR PRESCHOOL

1-Mile

3-Miles

5-Miles

Income

2000 Population

4,748

22,327

39,477

2010 Population

9,019

47,091

2016 Population

10,365

2021 Population

12,331

1-Mile

3-Miles

5-Miles

$ 0 - $14,999

5.5%

4.8%

4.5%

80,284

$ 15,000 - $24,999

4.4%

3.8%

4.2%

58,685

100,362

$ 25,000 - $34,999

7.9%

6.1%

6.0%

69,300

118,347

$ 35,000 - $49,999

12.5%

11.7%

11.0%

$ 50,000 - $74,999

24.7%

24.1%

21.4%

$ 75,000 - $99,999

15.8%

17.4%

17.2%

$100,000 - $149,999

20.0%

20.5%

21.4%

1-Mile

3-Miles

5-Miles

$150,000 - $199,999

4.7%

6.8%

8.5%

2000 Households

1,576

7,277

13,020

$200,000+

4.5%

4.8%

5.8%

2010 Households

2,961

15,581

27,407

2016 Median Household Income

$67,979

$74,312

$78,137

2016 Households

3,393

19,178

33,845

2016 Per Capita Income

$27,350

$29,485

$31,955

2021 Households

4,036

22,626

39,844

2016 Average Household Income

$84,352

$89,619

$94,535

2016 Daytime Population

5,277

28,898

49,426

2016 Average Household Size

3.05

3.05

2.96

2010 Owner Occupied Housing Units

78.8%

77.4%

73.6%

2010 Renter Occupied Housing Units

16.6%

18.2%

21.9%

2010 Vacant

4.6%

4.4%

4.5%

2016 Owner Occupied Housing Units

76.7%

75.7%

72.1%

2016 Renter Occupied Housing Units

19.2%

20.2%

23.8%

2016 Vacant

4.2%

4.1%

4.2%

2021 Owner Occupied Housing Units

76.4%

75.8%

72.3%

2021 Renter Occupied Housing Units

19.7%

20.5%

24.1%

2021 Vacant

3.9%

3.7%

3.7%

PROPERTY DESCRIPTION

Households

FINANCIAL ANALYSIS

Population

Traffic Counts

14,620

3,850 MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

Vitorino Group has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

Net Lease Disclaimer Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters.

The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

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Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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