Capital Pacific is leased to present an opportunity to acquire Guidepost Montessori, a corporate net lease investment in Folsom, California. The subject property features a new, 20-year lease and corporate guaranty with Guidepost Montessori, an education tenant and the largest Montessori school operator in the U.S. The lease includes 2% annual rent increases and two 5-year options to extend after the primary term. The school has been renovated and is now operating under the successful Guidepost brand. The lease is guaranteed by Guidepost’s parent company, Higher Ground Education (HGE), which operates 42 Guidepost locations in high-demographic markets throughout the U.S.
The subject property is located in Folsom, California, an affluent suburb of Sacramento, the state’s capitol. The area is characterized by excellent housing density, with its many affluent subdivisions and neighborhoods. The property directly benefits from being surrounded by these rooftops, in addition to a plethora of office parks and retail shopping centers. The average household incomes within a 1-mile radius of the property are an astounding $131,654, and within 5-miles the average incomes are $124,394. These incomes speak to the high-earning, dual-income families who call Folsom home and who are the target clientele for Guidepost Montessori.
