Xplor Preschool - Lewisville, TX by STRIVE

LEWISVILLE, TX

W E

A R E

E XC I T E D

A N N O U N C E

T H E

M E R G E R

O F

PIERSON RETAIL ADVISORS & THE VITORINO GROUP

Proudly, Pierson Retail Advisors and the Vitorino Group have merged forces and combined operations, renaming themselves STRIVE. Collectively, they have sold over 715 assets in nearly $3 billion in commercial real estate.

PRICING & FINANCIAL ANALYSIS

XPLOR PRESCHOOL

FINANCIAL ANALYSIS

Xplor Preschool 4660 FM 2281 Lewisville, TX 75056

Offering Summary Price Cap Rate Net Operating Income

6.75% $327,468

PROPERTY DESCRIPTION

Year Built

$4,855,000

2008

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

$327,468

Lease Commencement

5/1/2016

6-10

5/1/2021

$360,215

10.00%

Lease Expiration

6/30/2031

11-15

5/1/2026

$396,236

10.00%

Remaining Term

14 Years

Option 1: 16-20

5/1/2031

$435,860

10.00%

NNN

Option 2: 21-25

5/1/2036

$479,446

10.00%

Option 3: 26-30

5/1/2041

$527,390

10.00%

Lease Type Roof & Structure Increases Options Options to Purchase

Tenant CPI Every 5 Years

Net Operating Income

MARKET OVERVIEW

Lease Term

$327,468

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. Â© 2017 STRIVE

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 AdvancEDâ&#x201E;˘.

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

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 and Day Cares are a $48 Billion Dollar Industry, Internet and Recession-Proof and Provide Essential Services to Working Families • Conveniently Located Within 1.5 Miles From Two Elementary Schools and One Middle School • 40% Population Growth Since 2000

MARKET OVERVIEW

• Denton County is Projected to be Second Fastest Growing County in DFW until 2030

AERIAL MAP

XPLOR PRESCHOOL

OLD DENTON ROAD

WINDHAVEN PARKWAY

Killian Middle School

PROPERTY DESCRIPTION

SAM RAYBURN TOLLWAY

FINANCIAL ANALYSIS

Independence Elementary School

MARKET OVERVIEW

Coyote Ridge Elementary School

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. ÂŠ 2017 STRIVE

REGIONAL MAP

XPLOR PRESCHOOL

MARKET SUMMARY

XPLOR PRESCHOOL

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX Dallas encompasses half of the Dallas/Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States. Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas/Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States.

Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations. Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.

MARKET OVERVIEW

The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the

latest rankings released in 2013, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has 12 Fortune 500 companies, and the DFW region as a whole has 20.

DEMOGRAPHIC SUMMARY

XPLOR PRESCHOOL

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 221,618. The rate of change since 2000 was 38.76%. The five-year projection for the population in the area was 242,616 representing a change of 9.47% from 2016 to 2021. The population was 49.0% male and 51.0% female. The median age in this area was 34.2, compared to U.S. median age of 38.0.

Households There were 86,698 households in your selected geography in 2016. The number of households has changed by 39.03% since 2000. It is estimated that the number of households in your area will be 94,705 in 2021, which represents a change of 9.24% in five years. The average household size in your area was 2.55 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography was $69,262, compared to the Entire US average which was $54,149. It is estimated that the median household income in your area will be $77,663 in 2021, which represents a change of 12.13% from 2016. The 2016 per capita income in your area was $37,213, compared to the Entire US average, which was $29,472. The average household income in your area was $94,749 compared to the Entire US average which was $77,008.

Race and Ethnicity The racial makeup of your selected area was as follows: 59.1% White, 12.7% Black, 0.6% Native American and 15.2% 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 made up 23.4% of the 2016 population in your selected area. Compare this to the Entire US average of 17.9%.

Housing MARKET OVERVIEW

In 2016, there were 41,935 owner occupied housing units in your area and there were 44,762 renter occupied housing units in your area. Median home value in the area was $214,239, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 126,191 employees in your selected area; this is also known as the daytime population. 70.3% of employees were employed in white-collar occupations in this geography, and 13.8% were employed in blue-collar occupations. In 2016, unemployment in this area was 3.4%. Demographic data ÂŠ 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. ÂŠ 2017 STRIVE

DEMOGRAPHIC STATISTICS

XPLOR PRESCHOOL

1-Mile

3-Miles

5-Miles

Income

1-Mile

3-Miles

5-Miles

2000 Population

1,823

44,305

159,715

$ 0 - $14,999

5.0%

4.6%

6.5%

2010 Population

7,359

63,702

199,454

$ 15,000 - $24,999

4.8%

7.4%

2016 Population

10,632

76,330

221,618

$ 25,000 - $34,999

5.0%

6.3%

9.1%

2021 Population

12,847

86,452

242,616

$ 35,000 - $49,999

6.0%

8.4%

12.5%

$ 50,000 - $74,999

15.8%

15.0%

17.5%

$ 75,000 - $99,999

13.8%

12.7%

$100,000 - $149,999

20.5%

23.1%

17.7%

Households

3-Miles

5-Miles

$150,000 - $199,999

12.7%

11.4%

8.3%

2000 Households

607

15,746

62,361

$200,000+

16.4%

12.5%

8.4%

2010 Households

2,479

23,225

78,548

2016 Median Household Income

$98,933

$93,556

$69,262

2016 Households

3,398

27,395

86,698

2016 Per Capita Income

$41,706

$41,534

$37,213

2021 Households

4,067

30,857

94,705

2016 Average Household Income

$125,649

$115,759

$94,749

2016 Daytime Population

5,550

42,307

126,191

3.13

2.78

2.55

2010 Owner Occupied Housing Units

59.5%

62.7%

48.4%

2010 Renter Occupied Housing Units

36.3%

32.4%

45.2%

2010 Vacant

4.2%

4.9%

6.4%

2016 Owner Occupied Housing Units

53.8%

58.5%

45.3%

2016 Renter Occupied Housing Units

41.0%

36.6%

48.3%

2016 Vacant

5.2%

4.9%

6.4%

2021 Owner Occupied Housing Units

53.4%

57.3%

44.5%

2021 Renter Occupied Housing Units

41.5%

37.9%

49.2%

5.1%

4.8%

6.3%

2016 Average Household Size

Traffic Counts

100,000

MARKET OVERVIEW

2021 Vacant

PROPERTY DESCRIPTION

1-Mile

FINANCIAL ANALYSIS

Population

11,728

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 tenantâ&#x20AC;&#x2122;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.

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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