INVESTMENT OPPORTUNITY
Build-to-Suit Development · Immediate Yield & Guaranteed Minimum Return
INVESTMENT TARGET CLOSING: October 15, 2024
Low-Risk Investment with High-Credit Tenant and Immediate Coupon Payments
Buttry & Brown Development (BBD), a premier provider of build-to-suit business expansion solutions, partners with Busy Bees, a leading international childcare operator backed by major financial institutions.
BBD presents a low-risk investment opportunity with immediate cash-flow and a clear path to liquidity. This project involves the acquisition and remodel of an existing property zoned for childcare in Phoenix’s Medical District. The tenant is a top international early childhood educational operator with over $1B in revenues and no external debt on its balance sheet. A 15-year NNN lease has already been negotiated via the sponsor’s established relationship with the client. Marketing of this attractive investment sale will begin shortly, with an exit expected in 12-24 months or less. (Disclaimer: included renderings represent future locations, not this specific site).
Investment terms
See details on this transaction below. Click “learn more” below to read our investment memorandum.
Equity Raise
$1,325,000
Minimum Return
12% annually
Investment Period
12-24 Months
Minimum Investment
$250,000
Project Type
Existing Childcare Facility
Tenant
Busy Bees Childcare
Phoenix's strong economic fundamentals make it an ideal location for childcare investment. The metro area consistently ranks among the fastest-growing in the U.S., driven by robust job creation and population influx. The Medical District, where this project is located, especially benefits from a concentration of healthcare facilities and a growing workforce of medical professionals. These market trends, coupled with increases in dual-income families nationwide, creates a compelling case for investment in high-quality childcare services in this area.
Investment Details
STRATEGIC ACQUISITION AND RENOVATION OF EXISTING CHILDCARE FACILITY WITH NEGOTIATED LEASE IN-HAND FROM WELL-CAPITALIZED INTERNATIONAL OPERATOR
Buttry & Brown Development partners with high-credit, institutionally backed real estate operators in expanding their footprint by developing and constructing build-to-suit properties leased by the client. This provides clients with an efficient way to scale, minimizing their effort while ensuring their new properties are perfect for their use.
In return, BBD executes long-term leases prior to development, ensuring downside protection for its investors while increasing appeal of property for potential buyers leading to short investment hold periods and faster liquidity.
Project Highlights
- Acquisition of an existing facility, reducing development risks
- Renovation in line with tenant's standards
- Negotiated lease in-hand from high-credit international tenant
- No external debt on tenant balance sheet and major institutional funding
- Immediate marketing of property for sale upon lease execution
Proven Strategy
BBD's build-to-suit model offers several key benefits for this investment:
- Reduced Risk: Pre-signed lease eliminates vacancy risk
- Customization: Tailored to client's specific needs, ensuring long-term tenant satisfaction
- Aligned Interests: BTS model incentivizes quick completion and sale of the property
Track Record
- Over $200 million in completed development projects since 2015
- Experience in 14 states & various sectors, incl. education, healthcare, and retail
- Consistent delivery of projects on time and within budget
- Strong relationships with national tenants and financial institutions
Build-to-Suit Client Testimonial
Premium Tenant
PROJECT TENANT IS A TOP INTERNATIONAL LEADER IN $62B CHILDCARE INDUSTRY WITH +$200M IN U.S. REVENUE, BACKED BY LEADING INVESTMENT AND PENSION FUNDS IN ITS CONTINUED GLOBAL EXPANSION
Busy Bees is a world-class provider of early childhood education, based in the UK. Founded in 1983, Busy Bees now has childcare facilities in 9 countries around the world, including UK, US, Vietnam, Singapore, Canada, and Australia. The company has engaged BBD to be its development partner for a regional expansion that will see 7 new properties come online in the greater Phoenix metro area in the next 18-24 months.
Company Highlights
- Global Footprint: Operates 990 centers globally, including 119 in the United States
- Market Leader: Fourth-largest corporate childcare operator globally
- Strong Performance: Approximately $1B in annual revenue globally, $200M in US alone
- Well Capitalized: Backed by Ontario Teachers' Pension Plan and Temasek (Singapore)
Market Overview
The property is located in Phoenix's Medical District, offering proximity to major healthcare facilities and employers. Market-wide population growth and workforce concentration in the immediate area will bolster property performance and acquisition interest.
Childcare Industry
Rapidly changing demographics are driving childcare demand, creating a compelling opportunity:
- $62.8 billion market value (2023) growing at 4.18% CAGR through 2023
- 8.4 million children in the U.S. have two working parents
- 57% of working U.S. families spend over $10,000 per year on childcare
Phoenix Market:
- Leading Metro: Phoenix is one of the fastest-growing metro areas in the U.S.
- New Jobs: Companies fleeing from California (Google) and new international manufacturers (TSMC)
- Investor Interest: Institutional and sub-institutional interest has followed this rapid growth
Financial Projections
This investment offers attractive and secure returns for investors, including:
- 12% Annual Interest: Paid monthly, starting immediately upon capital contribution
- Guaranteed Return: Minimum of one year at 12% annualized, even if property sells < 12mo
- Priority Payout: Investor returns are paid before BBD receives any distributions
- Potential Upside: Possibility of increased return if property sells in less than 12 months
Exit Plan
BBD's exit strategy is designed to maximize investor returns and liquidity:
- Immediate Marketing: Property will be listed for sale as soon as the lease is executed
- Target Exit Timeline: 12-24 months, providing relatively quick return of capital
- Attractive to Buyers: Long-term lease with high-credit tenant appeals to institutional investors
Buttry & Brown Development is a premier provider of real estate development, construction management, and financing solutions. Since 2015, BBD has delivered over $200 million in development projects across 14 states, with projects spanning healthcare, retail, education, childcare, and office sectors. BBD's principals bring over 40 years of combined experience in real estate development, financing, and operations. Their hands-on approach and deep understanding of local markets, permitting processes, and tenant needs drive efficient project execution and maximize investor returns.
Buttry & Brown Development is a premier provider of real estate development, construction management, and financing solutions. Since 2015, BBD has delivered over $200 million in development projects across 14 states, with projects spanning healthcare, retail, education, childcare, and office sectors. BBD's principals bring over 40 years of combined experience in real estate development, financing, and operations. Their hands-on approach and deep understanding of local markets, permitting processes, and tenant needs drive efficient project execution and maximize investor returns.
Little Sunshine's Playhouse
BBD has completed over 17 projects with national childcare operator, Little Sunshine's Playhouse. With projects ranging across the West and Southwestern US, BBD has consistently delivered on time and on budget.
$80M
17
Next Steps
To learn more about this investment opportunity and discuss potential participation, fill out the form included here or email us at sbrown@buttry-brown.com to learn more.
