Tierra Encantada

Highlights:

• Strong Lease Fundamentals: 11+ years remaining on absolute net lease featuring 2% annual rental increases (5% in 2033)
• Corporate Guaranty: Full-term corporate guaranty from tenant’s primary operating entity, Tierra Encantada LLC (see below)
• Recent Improvements: Tenant-specific conversion/buildout prior to school opening including new roof installation
• Leading Bilingual Early Education Provider: Tierra Encantada is a leading Spanish immersion early education concept in the U.S., garnering high satisfaction among parents and the communities it serves
• Private Equity Backing: In 2024, Tierra secured a $38 million minority growth investment from Susquehanna Growth Equity (SGE), which has fueled their expanding national footprint
• Expanding Portfolio: 21 locations in 7 states with 47 new schools in development as of August 2026
• 4th Largest MSA in the U.S.: ~8.5 million residents currently and rapidly expanding, particularly among young, affluent families moving into surrounding neighborhoods
• Affluent Parent Demographics: $124-142K average household incomes within a 1, 3, and 5-mile radius
• High-Density Area with Robust Economic Indicators: Dallas-Fort Worth hosts the 4th largest concentration of Fortune 500 companies, providing a stable, affluent community ideal for supporting long-term early education demand

Description:

Leading Spanish immersion early education concept nationwide with private equity backing driving rapid expansion

Over 11 years remain on this absolute net lease featuring 2% annual rental increases (5% in 2033) and a corporate guaranty from the tenant’s primary operating entity, Tierra Encantada LLC. In 2024, Tierra secured a $38 million minority growth investment from Susquehanna Growth Equity (SGE), which has fueled its expanding national footprint, growing its location count 21 schools in 7 states with another 47 locations in development.

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