The Gardner School

Investment Overview

A brand-new, build-to-suit The Gardner School (“TGS”) on a 20-year absolute net lease featuring 10% rental increases every 5 years throughout the base term and options and a corporate guaranty from tenant’s parent company, TGS Holdings, LLC. The financials backing TGS’s guaranty are exceptionally strong – in FY 2024 they reported revenues of over $117 million and a global school level profit of $24.1 million.

Investment Highlights

• Strong Lease Fundamentals: 20-year absolute net lease featuring 10% rental increases every 5 years
• Significant Corporate Backing: Corporate guaranty from tenant’s parent company, TGS Holdings, LLC (see below)
• Brand-New Building: 2026 build-to-suit construction for TGS
• Local Brand Awareness: TGS operates multiple established locations across the Minneapolis–St. Paul MSA, serving as a leading provider of premium early childhood education throughout the market
• Excellent Financials: TGS reported over $117 million in revenues in FY 2024 and $24.1 million in global school level profit
• Continued Performance: In 1H 2025, TGS’s EBITDA was $16.25 million
• Growing Operator: 43 locations in 8 states and Washington D.C. with 6 new schools set to open in 2026
• Extremely Affluent Parent Demographics: $156-176K average household incomes within a 1, 3, and 5-mile radius
• Steady Growth Submarket: Estimated population growth within a 1, 3, and 5mile radius over the next 5 years
• Significant Education Spend: Families within a 5-mile radius spent a total of $108 million on education and tuitions in 2025, per CoStar