Pegasus Investments Real Estate Advisory Inc. and ParaSell, Inc., as exclusive investment sale advisors to Seller, are pleased to present the opportunity to acquire a property leased to the corporate entity of O2B Kids (“O2B”) in the rapidly growing and affluent southeastern section of Jacksonville, Florida (the “Property”).
Headquartered in Gainesville, Florida, O2B Kids is a nationally accredited early childhood education center operator. O2B’s growth model involves the acquisition and enhancement of established day care centers and early childhood education facilities. Today, O2B has expanded to fifty-nine (59) locations across five states: Florida, Alabama, Georgia, Missouri and Minnesota. With the help of a strategic investment partnership with Spire Capital Partners in 2018, O2B’s portfolio and recent expansion has included the acquisitions of Children of Tomorrow Learning Center, Precious People Learning Center, Discovery Point, and Bright Start Academy. Today, O2B is a leading provider in the state of Florida and serves over 5,000 children annually.
Investors in the subject Property will benefit from the opportunity to acquire a 1.94-acre parcel with a 14,356 square foot structure leased to a wholly owned corporate subsidiary, O2B Kids 8 LLC, and guaranteed by the company’s corporate holding entity, O2B Early Education Holding, Inc. The 100% absolute triple net (NNN) lease has over eleven (11) years of firm term remaining with an additional four (4) 5-year optional extensions and carries attractive annual rental increases of 2.00% or 1.25% CPI, whichever is lesser, enabling the landlord to realize healthy NOI growth on an annual basis of the investment period. Additionally, at just $353 PSF at the asking price, the cost basis is attractive relative to replacement cost.