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PRECISION COLLISION 2218 Auburn Way N, Auburn, WA 98002
[ ]www.CapitalPacific.com
Sean Mack | [email protected] (503) 675-8378 Michael Horwitz | [email protected] (503) 675-8381
Baylor Gordon | [email protected] (206) 457-8960 Sean Tufts | [email protected] (206) 743-8468
Kevin Adatto | [email protected] (503) 675-7726 Co-Broker Agreement with AGM, Inc. Jim Reed | [email protected]
PRECISION COLLISION AUBURN IS A SINGLE TENANT VEHICLE REPAIR CENTER LOCATED IN AUBURN, WASHINGTON.
The Subject Property includes a recently executed 10 year NNN lease. Located in the heart of “dealership row” on Auburn Way, Precision Collision benefits from high visibility and traffic counts in excess of 22,000 vehicles per day.
ABRA Auto Body & Glass, a leading national vehicle repair company recently acquired 23 Precision Collision Auto Body repair centers in Washington including the Auburn location. ABRA is one of the fastest growing multi-shop repair companies and currently operates in 172 locations nationwide.
Investment HighlightsThe Story ADDRESS: 2218 Auburn Way N, Auburn, WA 98002
PRICE . . . . . . . . . . . . . . . $1,170,000
CAP RATE . . . . . . . . . . . 7.75%
RENTABLE SF . . . . . . . . 6,901 SF
PRICE PER SF . . . . . . . . $170
LAND AREA. . . . . . . . . . 19,600 SF
LEASE TYPE . . . . . . . . . . NNN (Landlord Roof and Structure)
TERM . . . . . . . . . . . . . . . 10 Years
YEAR BUILT . . . . . . . . . . 1979
COPYRIGHT © 2013. ALL USE, DISCLOSURE AND/OR REPRODUCTION NOT SPECIFICALLY AUTHORIZED IS PROHIBITED. ALL RIGHTS RESERVED. Capital Pacific (“Agent”) has presented this confidential Investment Memorandum to assist the recipient in evaluating the “Property” and it is intended for your use only. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. The Buyer should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Buyer agrees that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) the Buyer shall not contact any property manager, employee or tenant of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) the Buyer understands and agrees that Agent represents the seller and not the Buyer. Neither the seller nor Agent shall have any obligation to pay any commission, finder’s fee, or other compensation to any broker or other person dealing with the Buyer. The Buyer may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential. The Buyer shall defend, indemnify and hold harmless the seller, Agent and its affiliates from and against any claims, demands, damages, liabilities, costs or expenses, including reasonable attorneys’ fees, relating to any claim for a commission, finder’s fee or other compensation by any broker or other person dealing with the Buyer. The Property is being sold on an “as-is, where-is” and “with all faults” basis. - 2013
ABRA AUTO BODY & GLASS Corporate Signature - 172 Repair Stations Nationwide
NEW 10 YEAR NNN LEASE 8% Increase After Year 5
HISTORICAL TENANCY 10 Plus Years at this Location
HIGH TRAFFIC COUNTS 22,000 VPD on Auburn Way
EXCELLENT CASH ON CASH YIELDPre-Tax Cash-on-Cash Yield of 10.40%
INVESTMENT HIGHLIGHTS
Aubu
rn W
ay N
“DEA
LERS
HIP
RO
W”
1st N
E
22nd St. NE
AUBURN MUNICIPAL
AIRPORT
SUBJECT PROPERTY
Precision Collision
VPD:
23,
000
THE PROPERTY BENEFITS FROM BEING LOCATED IN THE HEART OF AUBURN’S DEALERSHIP ROW. THE FOLLOWING DEALERS ARE ALL LOCATED IN CLOSE PROXIMITY: CHEVROLET, FORD, TOYOTA, NISSAN, VOLKSWAGEN, SUBARU, FORD, CHRYSLER/JEEP/DODGE AND BUICK GMC.
LOCATED ON “DEALERSHIP ROW”
CLOSE-UP AERIAL
PRECISION COLLISION - AUBURN 3
Aubu
rn-Ec
ho La
ke Cu
toff
Rd
5
18
18
167
167
5
AUBURN PUBLIC
LIBRARY
SUBJECT PROPERTY
Precision Collision
VPD:
120
,000
VPD:
160
,000
PRECISION COLLISION - AUBURN 4
AUBURN AERIAL
RENT ROLL
INCOME/EXPENSE
Precision Collision2218 Auburn Way N, Auburn, WA, 98002
PRICE $1,170,000Capitalization Rate: 7.75%
Price Per Foot: $170
Pre-Taxed Leveraged Cash-on-Cash Return: 10.40%
NET OPERATING INCOME SUMMARYPlus: STABILIZED INCOME Per SFScheduled Rent: 7/1/2013 $13.22 $91,200Equals: Effective Gross Income $13.22 $91,200
Less: OPERATING EXPENSES Per SFTotal Operating Expenses ($0.10) ($690)
Equals: NET OPERATING INCOME $90,510
LEVERAGED RETURN CALCULATIONProposed New Loan : 65.00% $760,500Interest Rate 3.95%Amortization 25Payment - Principal & Interest: ($47,919)Start Date Jul-13
Equity Requirement: $409,500Debt Coverage Ratio: 1.89 Debt Constant: 6.30%Net Operating Income: $90,510Less: Total Annual Debt Service ($47,919)Equals: Pre-Tax Cash Flow $42,591Pre-Taxed Leveraged Cash-on-Cash Return: 10.40%
6/5/2013 [ <www.CapitalPacific.com> ]
Precision CollisionAuburn, WA
TENANT INFO OPTIONS LEASE
Tenant Name Size Occupancy Date
Lease Expiration
Monthly Base Rent SF/YR Date Monthly % Increase
Precision Collision (ABRA) 6,901 5/10/13 5/31/23 $7,600 $13.22 6/1/13 $8,208 8% Two 5-Year
Totals: 6,901 $7,600 $13.22
comments: New 10 year NNN lease. 8% rent increase after year 5. Landlord responsible for roof and structure.
LEASE TERMS CURRENT RENT
NNN8% Increase Every Term
RENT INCREASES
6/5/2013 [ <www.CapitalPacific.com> ]
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 accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Loan SummaryThe following loan summaries are for consideration purposes only, and not a guarantee of loan terms:
Loan To Value: 65%
Interest Rate: 3.95%
Term: 5 year fixed
Amortization: 25 years
Greg S. Barton
Infinity Funding Group
2033 208th Place NE, Sammamish, WA 98074
D: 425.351.1555 | F: 425.898.1122
www.infinityfundinggroup.com
PRECISION COLLISION - AUBURN 5
FINANCIALS
Eighteen of the repair centers are centrally located in the Seattle metro area, with five additional centers in the cities of Burlington, Mount Vernon, Wenatchee, Kennewick, and Spokane. The 23 centers will operate under the direction of an experienced General Manager and include a team of rigorously trained and highly skilled body shop technicians and expert repair professionals.
ABRA has a bigger vision for itself and a clear eye on growth. It plans to continue expanding in the years ahead and is actively seeking new opportunities to acquire repair centers and integrate them into its industry leading operating system as part of its aggressive national growth plans in major markets.
ABRA ACQUIRES
172 ABRA REPAIR CENTERS
23 SEATTLE METRO & WA PRECISION COLLISIONS
IN 17 STATES
In the news
“This is a game-changing acquisition for us... Aligning ourselves with such an established, well-respected company that shares the same values is a once in a lifetime opportunity.” -- Duane Rouse, President/CEO, ABRA
ABRA AUTO BODY & GLASS ANNOUNCES DRAMATIC GROWTHPress Release: ABRA Auto Body & Glass – Fri, May 10, 2013
In the largest acquisition of its nearly 30 year history, ABRA Auto Body & Glass, a leading national vehicle repair company and one of the country’s fastest growing multi-shop repair operators, announced today it acquired 23 Precision Collision Auto Body repair centers in the Seattle metro area and throughout Washington. Today’s deal marks the company’s entry into the northwest region and increases the total number of new ABRA center openings this year to 37.
ABRA is rapidly becoming a collision repair heavyweight and is known throughout the industry as one of the top performing operators in the country. The company has significantly accelerated its growth in recent months and now operates a total of 172 repair centers in 17 states.
“This is a game-changing acquisition for us,” said Duane Rouse, President and Chief Executive Officer of ABRA. “We have an extremely strong management team, a scalable integration platform, a fantastic brand, and extensive expertise and experience in the collision repair industry. Acquiring these repair centers is just one more step in ABRA’s ongoing growth strategy to better serve our customers and insurance partners.”
Scott Hensrude, Precision Collision’s Owner and Chief Executive Officer, embraces today’s acquisition. “This is a great cultural fit and a tremendous opportunity for our employees,” he added. “Aligning ourselves with such an established, well-respected company that shares the same values is a once in a lifetime opportunity.”
Greg Wright, President of Precision Collision, is also impressed with ABRA. He will join the company and assume a leadership role to help manage operations in the market as well as assist in the company’s growth in the region. “ABRA shares our culture of ethics, integrity, and teamwork. We’re excited to build a strong partnership to deliver top-notch service and quality to customers in Seattle and throughout Washington.” Plans also include adding Precision Collision’s three longtime District Managers to ABRA’s team of 2,500 dedicated employees nationwide.
ABRA AUTO BODY / PRECISION COLLISION
PRECISION COLLISION - AUBURN 6
POPULATION
1 mile 3 miles 5 miles2010 8,902 64,883 212,5402012 9,289 66,111 217,4302017 10,189 70,005 231,645
HOUSEHOLD INCOMES 2012
1 mile 3 miles 5 milesAverage $47,003 $71,256 $67,855Median $36,606 $54,978 $52,790
POPULATION: Auburn is a suburb in the Seattle metropolitan area. and is currently ranked the fourteenth largest city in the state of Washington. The population was 70,180 at the 2010 United States Census.
TRANSPORTATION: Auburn has many large roads nearby and within city limits, including Washington State Route 167 commonly referred as the “Valley Freeway,” and Washington State Route 18. Auburn also has its own Transit Center, Auburn Sounder station in downtown, making it a central gateway key to access with Sound Transit to the entire Puget Sound area.
DOWNTOWN REDEVELOPMENT: In 2008, construction began of a new 300 stall, 97,000-square-foot parking garage and medical building for the Auburn Regional Medical Center, located directly north of city hall.
Since 2010, the City of Auburn has been investing $10 million of federal and state funds in the South Division Street Promenade Project and other downtown projects to make it easier and more attractive for private sector investment.
The “Auburn Junction” will complete the goal of encompassing a regional entertainment and shopping center, while being an Urban Center.
AUBURN, WA
SEATTLE
WASHINGTON
AUBURN
25 MILES
16 MILES
TACOMA
SUBJECT PROPERTY
PRECISION COLLISION
MARKET INTELLIGENCE
PRECISION COLLISION - AUBURN 7
[www.CapitalPacific.com]
[www.CapitalPacific.com]
Precision Collision | 2218 Auburn Way N, Auburn, WA 98002
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WHAT IS ?
Michael [email protected](503) 675-8381
Sean [email protected] (503) 675-8378
Sean [email protected] (206) 743-8468
Baylor Gordon [email protected] (206) 457-8960
Kevin [email protected](503) 675-7726
Co-Broker Agreement with AGM, Inc. Jim [email protected](206) 210-5209
