OFFERING MEMORANDUM

BIG BLUE MARBLE ACADEMYACWORTH, GA

Subject Property

3 Big Blue Academy | Acworth, GA

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 accu-racy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap. All rights reserved. Activity ID: ZAB0670383

CONFIDENTIALITY AND DISCLAIMER

Exclusively Listed by

Marcus & Millichap

Oakbrook, IL1 Mid America Plaza #200Oakbrook Terrace, IL 60181P: +1 630-570-2200

John LeonardRegional ManagerAtlanta, GATel: (678) 808-2750JLeonard@marcusmillichap.comLicense: 252904

Broker of Record

Dominic SuloFirst Vice President InvestmentsCHICAGO OAKBROOKTel: (630) 570-2171DSulo@marcusmillichap.com License: IL 475.134920

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be re-viewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The infor-mation contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap 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, PCB’s or asbestos, the compliance with 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any com-mercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee informa-tion about this listing to prospective customers.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this mar-keting package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or spon-sorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due dil-igence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other profession-als on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condi-tion or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

4 Big Blue Academy | Acworth, GA

THE OFFERING

BIG BLUE MARBLE ACADEMY10492 Dallas Acworth HighwayAcworth, GA 30101

FINANCIAL SUMMARY

Price $2,285,000

Cap Rate 6.75%

Net Operating Income $154,187

Building Sq Ft 7,868 Sq Ft

Year Built 2000

Lot Size +/- 2.01 Acres

LEASE SUMMARY

Lease Type Absolute Net

Tenant Big Blue Marble Academy, LLC

Guarantor Corporate

Roof and Structure Tenant Responsible

Primary Term 20 Years

Lease Commencement Date 5/18/2018

Rent Commencement Date 6/1/2018

Lease Expiration Date 5/31/2038

Term Remaining 17+ Years

Rental Increases Yes

Renewal Options Two, Ten-Year

OPERATING DATA

Lease Years Annual Rent Cap Rate

3 $154,187 6.75%

4 $157,271 6.88%

5 $160,416 7.02%

6 $163,625 7.16%

7 $166,897 7.30%

8 $170,235 7.45%

9 $173,640 7.60%

10 $177,113 7.75%

11 $180,655 7.91%

12 $184,268 8.06%

13 $187,953 8.23%

14 $191,713 8.39%

15 $195,547 8.56%

16 $199,458 8.73%

17 $203,447 8.90%

18 $207,516 9.08%

19 $211,666 9.26%

20 $215,899 9.45%

Options Annual Rent Cap Rate

21-30 (Option 1) $220,217 9.64%

31-40 (Option 2) $263,180 11.52%

Base Rent $154,187

Net Operating Income $154,187

Total Return 6.75%|$154,187

5 Big Blue Academy | Acworth, GA

SITE PLAN

SITE PLAN KEY

Parcel Outline

Lot Size +/- 2.01 Acres

Building Sq Ft 7,868 Sq Ft

Ingress/Egress

Da

llas A

cw

orth

Hw

y 15,811 D

aily

6 Big Blue Academy | Acworth, GA

TENANT OVERVIEW

No. of Locations: No. of States: Year Founded: Headquarters: Website:

34 8 2012 Auburn, Alabama https://bbmacademy.com

Global EducationWe offer your child a “global education”, one that prepares them for a world that becomes more interconnected every day, a world in which one city, one school, or even one family can boast the representation of several cultures. We give a broad approach to their learning by pairing a curriculum of Science, Technology, Engineering, Art and Mathematics (STEAM) education with a second language enrichment that gives all ages exposure to another language.

Language ImmersionLearning a second language at an early age can be beneficial for all children. Whether that second language is through Baby Signs for our infants, or being able to count in Spanish; our program teach developmentally appropriate skills in all of our classrooms.

After School ProgramsPassport to Adventure Club is an exciting afterschool experience that exposes students to foreign languages and cultures. Our program is designed to provide a broad view of diverse world languages and traditions.

Throughout each week, students will travel to different destinations, such as Destination Learning, Destination Imagination, Destination Global Adventure, and Destination Team Nation. Each part of the program has a different focus. At Destination Team Nation, students may learn leadership skills that they will later use in a soccer game. At Destination Imagination, they may be introduced to a French Impressionist’s work, and then offered the opportunity to create their own watercolor masterpiece. They will also have weekly instruction in a foreign language through our Passport to Language Curriculum.

Summer ProgramEach summer, we offer a summer camp that continues our theme of global learning. We develop a themed camp each year that offers hands-on learning, field trips, heart projects, foreign language camps and lots of fun! Each week has a different theme that also ties in with other cultures.

7 Big Blue Academy | Acworth, GA

THE EXECUTIVE TEAM

SCOTT COTTERChief Executive Officer

ROBERT MOFFETTChief Development Officer

NAN RIKARDFounder

Scott Cotter has over 20 years of man-agement and leadership experience in the early care and education industry. He joined Big Blue Marble Academy (BBMA) in October 2018 following Avathon Capi-tal’s initial investment in the company and was a part of the deal team that evalu-ated the business. Prior to joining BBMA, Scott was the CEO of a large multi-unit childcare operator.

Bob Moffett has almost 20 years of busi-ness growth and development experi-ence within the early childhood educa-tion space. Bob joined Big Blue Marble Academy (BBMA) in October 2018 follow-ing Avathon Capital’s initial investment in the company and was a part of the deal team that evaluated the business. Prior to joining the BBMA team, Bob was the Chief Development Officer at another multi-unit operator growing their footprint from 90 units to over 250 schools during his 18 year tenure.

Nan Rikard is the founder of Big Blue Mar-ble Academy (BBMA). She has spent her entire career in early care and education. Rikard formed BBMA to serve community based early childhood care, after school programs and language enrichment pro-grams. Her understanding of the import-ant role culture and language play in the future of young children has been the cor-nerstone of success for BBMA. After many years of hosting children from all over the world, she and her husband recently embarked into international adoption. In 2017, Rikard, her husband and their two sons and daughter welcomed into their family another daughter from Latvia.

8 Big Blue Academy | Acworth, GA

2019 | TOP 20 CORPORATE CHILD CARE COMPANIES

ORGANIZATION HEADQUARTERS CAPACITY (EST.) # OF CENTERS (EST.)

1 KinderCare Learning Centers Portland, OR 199,422 1,512

2 Learning Care Group Novi, MI 136,199 915

3 Bright Horizons Watertown, MA 120,000 1,090

4 Childcare Network Columbus, GA 45,314 266

5 The Learning Experience Deerfield Beach, FL 39,038 220

6 Spring Education Saratoga, CA 30,250 179

7 Cadence Education Scottsdale, AZ 30,000 225

8 The Sunshine House Greenville, SC 20,000 140

9 Crème de la Crème, Inc. Greenwood Village, CO 18,000 46

10 Children of America Delray Beach, FL 13,000 54

11 New Horizon Academy Plymouth, MN 12,584 86

12 Minnieland Academy Woodbridge, VA 11,193 65

13 Endeavor Schools Miami, FL 10,500 50

14 Brightside Academy Pittsburgh, PA 9,069 65

15 Early Learning Academies McLean, VA 6,250 42

16 Big Blue Marble Academy Auburn, AL 6,104 34

17 Action Day Nurseries San Jose, CA 5,620 26

18 Acelero Learning New York, NY 5,595 48

19 O2B Kids Gainesville, FL 4,528 20

20 Little Sprouts Lawrence, MA 4,322 43

9 Big Blue Academy | Acworth, GA

NEWS ARTICLES

STERLING PARTNERS’ EDUCATION OPPORTUNITY FUND INVESTS IN BIG BLUE MARBLE ACADEMY

EOF enters the early childhood education sector

CHICAGO–(BUSINESS WIRE)–Sterling Partners’ Education Opportunity Fund (“EOF”) announced today its investment in Big Blue Marble Academy (“BBMA”), a growing early childhood education organization that operates twenty-two community-based schools and six public elementary afterschool programs in South Carolina, Georgia, Tennes-see, Virginia, and Texas.

Founded in 2012 by Nan Rikard, BBMA provides high-quality, education-based programs for children ranging from infancy through age four, as well as before and after school and summer camp programs. The company offers a unique, proprietary curriculum, a rich language immersion program, and hands-on, student-led philanthropic activities, all of which are core to the organization’s mission of promoting student readiness and success.

“I started the company because I felt a responsibility to provide more than a daycare environment for children and their families and to truly help the children develop into curious and engaged global citizens,” explained Rikard. “I’m thrilled to now have trusted partners to help bring our program to even more young students to help ensure their future success.”

Joining BBMA’s executive management team is Scott Cotter, who will serve as CEO. Cotter brings decades of leadership and industry experience.

Full Article Click Here: https://www.sterlingpartners.com/sterling-partners-education-opportunity-fund-invests-in-big-blue-marble-academy/

10 Big Blue Academy | Acworth, GA

WHY BUY A CHILD CARE CENTER

Competitive Landscape

The U.S. childcare services industry includes about 54,000 commercial facilities with combined annual revenue of $25 billion, plus about 21,000 facilities run by nonprofit or-ganizations with combined annual revenue of about $13 billion. In 2017, 65 percent of mothers with children under the age of six participated in the workforce in the U.S., according to the Bureau of Labor Statistics.

Demand is driven primarily by growth in the youth population, and secondarily by employment and income. Recognition of the importance of early education is also driving demand for high-quality care. The profitability of individual child care facilities depends on good marketing, reputation, and efficient operations, as well as how saturated the local market is. Large companies have economies of scale in advertising and administration. Smaller companies can compete effectively in local markets by owning convenient locations.

Source: https://www.sbdcnet.org/small-business-research-reports/daycare-business http://www.hoovers.com

Child Care Market Size

The global market for child care reached a value of nearly $339.1 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.3 percent since 2014, and is expected to grow at a CAGR of 11.3 percent to nearly $520.4 billion by 2022.

Growth in the historic period resulted from economic growth in emerging markets, the rise in awareness of the benefits of early learning, government funding in developed nations towards child care costs and an increase in the number of families with both parents working. Going forward, government initiatives to support child care, rising corporate profits which enable companies to spend more on social benefits to employees, and awareness of the benefits of early-life education due to rising internet pen-etration, will drive growth.

Child Care Market Drivers

The key driver of the child care market include:

Increase In Two Working Parent Families – An increase in the numbers of families where both parents are employed and a steady change in gender roles occurred in the historic period. For instance, the proportion of families with both parents working in the USA increased from 46 percent in 2015 to 61.9 percent in 2017. Improved incomes and the illegality and stress burden of leaving children at home alone led working parents to enroll their children at child care centers or provide other child care, benefitting the child care market.

Source: https://www.thebusinessresearchcompany.com/report/child-care-market

8.4 million children in the U.S. have two working parents (Child CareAware of America, 2016), and the demand for high-quality preschools and childcare is increasing

Children’s daycare services made a total of $48.9 billion in revenue in 2017 and are projected to earn $52.5 billion by 2021 (Diment, 2016)

Although nearly 15 million children under the age of six require childcare (Child Care Aware of America, 2016), which is consistent with previous years, indicators show the demand for pre-schools and childcare will increase

Industry-wide sales grew by over six percent between 2008 and 2012, in contrast to a national dip of five per-cent during 2009.

11 Big Blue Academy | Acworth, GA

PROPERTY PHOTOS

12 Big Blue Academy | Acworth, GA

Dallas Acworth Hwy15,811 CPD

Subject Property

ALLATOONAHIGH SCHOOL1,734 Students

PICKETT’S MILLELEMENTARY SCHOOL739 Students

FREYELEMENTARY SCHOOL779 Students

DURHAMMIDDLE SCHOOL1,022 Students

New Housing DevelopmentBecketts Walks• 85 New Home Lots• Price Starting at $500,000

New Housing DevelopmentAmbrose Lake• 29 New Home Lots• Price Starting at High $400,000

New Housing DevelopmentMcClure Farms• 74 New Home Lots• Price Starting at High $300,000

13 Big Blue Academy | Acworth, GA

NEW HOUSING DEVELOPMENTS

DEVELOPMENT ADDRESS # OF HOMES PRICING

1Bercher HomesBecketts Walk

6110 Old Stilesboro RoadAcworth, GA 30101

85 Lots $500,000 - $700,000

2Pulte HomesThe Creek at Arthur Hills

74 Fairway Drive Acworth, GA 30101

TBD Low - Mid $300,000

3Pulte HomesWinslow at Brookstone

Collins Road NWAcworth, GA 30101

TBD Mid $300,000 & Up

4Patrick Mallory CommunitiesGovernors Towne Club-The Reserve

1232 Carl Sanders DriveAcworth, GA 30101

49 Lots Mid $500,000 & Up

5Pinnacle Homes of the SouthAmbrose Lake

6293 Granbury WalkAcworth, GA 30101

29 Lots High $400,000 - Mid $600,000

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2

3

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14 Big Blue Academy | Acworth, GA

LOCATION OVERVIEW

Acworth, Georgia is located in the foothills of the North Georgia mountains and is nestled along the banks of Lake Acworth and Lake Allatoona, hence its nickname “The Lake City,” about 35 miles northwest of Atlanta minutes off of Interstate 75 in Cobb County. The historic downtown and small-town feel of Acworth provides many leisure opportunities for families, foodies, and outdoor enthusiasts alike.

The city boasts a rich history, a charming downtown, abundant outdoor recreation-al activities, a vibrant restaurant scene, and an active festival and events calendar. Acworth is one of the best, family-friendly destinations in the Atlanta region. Exciting restaurants that cater to a variety of tastes, to charming boutiques with a unique local flare, Acworth keeps it fresh. And with it’s diverse collection of scenic outdoor activities, events, and challenging golf courses, you’ll experience the welcoming atmosphere that makes Acworth so special.

Historic downtown Acworth is the perfect blend of a rich, storied past and vibrant, energetic present. The dynamic downtown district showcases a great variety of din-ing and shopping opportunities. You don’t have to go far to relax and enjoy a fan-tastic meal among downtown Acworth’s many diverse dining choices. Whatever makes your mouth water, from spicy to savory to sweet, there’s definitely something for every taste. Down-home comfort food, authentic Cajun cuisine, Italian Trattoria, fresh seafood, casual homemade sandwiches and desserts for your sweet tooth, the choices are seemingly endless.

Take a swim at Cauble Park on Lake Acworth, hit the links at an award-winning golf course, take out a canoe for an afternoon of fishing, or simply paddle around in a kayak. Lake Acworth is perfect for paddle boarders due to its proximity to Atlanta and because no motorized craft are allowed on the lake.

Source: https://acworthtourism.org

36.9 MILESNORTHWEST OFATLANTA, GA

50 MILESHARTSFIELD-JACKSON ATLANTA

INTERNATIONAL AIRPORT

34.8 MILESTHE OUTLET SHOPPES

AT ATLANTA

11.4 MILESKENNESAW STATE

UNIVERSITY

Atlanta, GAAtlanta, GA

15 Big Blue Academy | Acworth, GA

DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE

2010 Population 2,057 27,824 74,202

2019 Population 2,524 33,459 86,390

2024 Population 2,840 37,342 94,399

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2010 Households 663 8,701 24,435

2019 Households 819 10,490 28,722

2024 Households 925 11,695 31,484

INCOME 1-MILE 3-MILE 5-MILE

Median Household Income $93,285 $96,275 $91,033

Per Capita Income $39,085 $37,990 $38,502

Average Household Income $120,534 $121,179 $115,728

POPULATIONIn 2019, the population in your selected geography is 86,390. The population has changed by 85.50% since 2000. It is estimated that the population in your area will be 94,399 five years from now, which represents a change of 9.27% from the current year. The current population is 49.39% male and 50.61% female. The median age of the pop-ulation in your area is 39.0, compare this to the Entire US average which is 38.1. The population density in your area is 1,099.79 people per square mile.

HOUSEHOLDSThere are currently 28,722 households in your selected geography. The number of house-holds has changed by 86.13% since 2000. It is estimated that the number of households in your area will be 31,484 five years from now, which represents a change of 9.62% from the current year. The average household size in your area is 3.02 persons.

INCOMEIn 2019, the median household income for your selected geography is $91,033, com-pare this to the Entire US average which is currently $60,811. The median household income for your area has changed by 34.68% since 2000. It is estimated that the median household income in your area will be $97,567 five years from now, which represents a change of 7.18% from the current year.

The current year per capita income in your area is $38,502, compare this to the Entire US average, which is $33,623. The current year average household income in your area is $115,728, compare this to the Entire US average which is $87,636.

RACE & ETHNICITYThe current year racial makeup of your selected area is as follows: 80.55% White, 12.41% Black, 0.04% Native American and 2.53% Asian/Pacific Islander. Compare these to En-tire US averages which are: 70.07% White, 12.87% Black, 0.19% Native American and 5.66% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.19% of the current year population in your selected area. Compare this to the Entire US average of 18.17%.

HOUSINGIn 2000, there were 13,913 owner occupied housing units in your area and there were 1,518 renter occupied housing units in your area. The median rent at the time was $598.

EMPLOYMENTIn 2019, there are 17,037 employees in your selected area, this is also known as the day-time population. The 2000 Census revealed that 69.36% of employees are employed in white-collar occupations in this geography, and 30.16% are employed in blue-collar occupations. In 2019, unemployment in this area is 3.37%. In 2000, the average time traveled to work was 40.6 minutes.

N