Colorado Springs, CO - KinderCare

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN, corporate guaranteed (NYSE: KLC), new construction KinderCare Learning Center investment property located in Colorado Springs, Colorado. The tenant, KinderCare Learning Centers, LLC, recently signed a brand new 15 year lease with 3 (5-year) options to extend, demonstrating their commitment to the site. The lease features 12% rental increases every 5 years throughout the initial term and at the beginning of each option period, hedging against inflation. The lease is NNN with limited landlord responsibilities making it an ideal, low-management investment opportunity for a passive investor. KinderCare is the nation’s largest provider of early childhood education by capacity, operating more than 2,700 locations nationwide, and completed a successful October 2024 IPO on the NYSE under ticker KLC that valued the company at approximately $2.7–$3.1 billion.

The subject property is conveniently located near the signalized, hard corner of East Woodmen Road and North Marksheffel Road (combined 65K+ VPD) in northeast Colorado Springs, one of the fastest-growing metro areas south of Denver. The area represents a targeted expansion corridor for the tenant given the area’s exceptional pace of residential growth. Positioned within the 36-acre Tallgrass at the Ranch master-planned development, the site is situated directly in the path of sustained residential and infrastructure expansion designed to serve younger couples and families including new schools, healthcare facilities, parks, and neighborhood retail. The immediate trade area is anchored by large-scale master-planned communities including the adjacent Solace at the Ranch (374-unit luxury multifamily community), Wolf Ranch (7,000+ planned units), Sterling Ranch (3,000+ planned units), and Forest Meadows and Indigo Ranch (3,900+ combined homes), supporting strong demand for early childhood education. The surrounding trade area boasts affluent average household incomes of $153,205 / $142,030 / $136,844 within 1-, 3-, and 5-mile radius, respectively, and includes over 10,400 / 72,600 / 183,701 residents within the same areas, with an average resident age in the mid-30s. The area has already experienced over 18% residential population growth from 2010 to 2020, with an additional ~3% projected within one mile, further reinforcing long-term demand. The location is supported by its proximity to major employment drivers and institutions, including CommonSpirit St. Francis Hospital, aerospace and defense employers, and Peterson and Schriever Space Force Bases. Roadway improvements to Marksheffel Road, Woodmen Road, and the Banning Lewis Parkway extension will also help drive traffic to this immediate area. Within a region consistently ranked among the nation’s best places to live, and centrally positioned between Denver, Boulder, and Colorado Springs, KinderCare is strategically positioned in a premier growth corridor.

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Listing ID: a28TP000002DSQLYA4