Given increased client demand for stable, low-cost, cash flowing investments, the EastAlliance portfolio of investment funds has expanded into the NNN sector. As a result of this strategic expansion, EastAlliance partnered with a proven national investment firm with whom we have a long-standing relationship to invest in the acquisition of three (3) early childhood education centers on long-term leases. Our operating partner’s strong platform and domain expertise, coupled with the EastAlliance executive team’s experience in the NNN sector, made this opportunity an obvious fit for our NNN-focused strategy.
Given the stabile nature of NNN leases; location of the portfolio in a fast-growing region in the US; our operating partner’s market-leading expertise in structuring NNN opportunities; fixed rate debt that was locked in prior to further hikes; the Tenant’s growing regional footprint; and, the projected inelasticity of demand for high-quality early education services, EastAlliance opted to pursue an equity position in this partnership through one of its single-investment managed fund structures.
The portfolio consists of three (3) single story daycare centers located near key thoroughfares in densely populated residential and retail corridors. Combined, these single-story buildings total approximately 39,500 SF. Each of the properties boast a series of open concept classrooms and daycare areas, community-centric common areas, basic food preparation areas, storage, restrooms, and receiving/reception areas, surrounded by an exterior of open, grassed areas and fenced-in playgrounds.