Caliber Collision Portfolio | (4 Locations) DC Metro ... · based Service King—together own only...

Caliber Collision Portfolio | DC Metro / VirginiaOffering Memorandum

JONATHAN W HIPPPRESIDENT & CEO

(703) 787-4725 [email protected]

BRIAN O’HEARDIRECTOR


Representative Photo

EXCLUSIVE LISTINGOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

Caliber Collision Portfolio | (4 Locations) DC Metro / Virginia Largest Growing / Fastest Repair Collision Center In The USA


Portfolio Summary

Asking Price $12,600,000 | Cap Rate 6.00%

Annual Rent After Deductions $755,184

Rent/Month $72,280

Total Rentable Square Feet 54,000+/- SF

Tenant Name Caliber Collision

Guarantor Corporate

Ownership Type Fee Simple

Lease Type* NN

Lease Term Remaining 15 Years

Rent Commencement October 1, 2017

Lease Expiration September 30, 2032

Increases 6% Increase Every 3 Years

Options Two (2), Five (5) Year

Portfolio Highlights • Forbes, Inc. Loudoun County top overall county in the USA

• Median Household Income of $115,574

• Forbes Inc. - Prince William County 12th ranked overall county in USA • Median Household Income of $93,744

• Automobile zoning use designation - irreplaceable zoning

• Each location is in the top 25% of all revenue nation wide

• Just added 500th location in March 2017

Purcellville, Virginia

Leesburg, Virginia

Sterling, Virginia

Gainesville, Virginia

* Owner responsible for the real estate taxes for first (5) years, tenant responsible for next 10 years.

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Financial Summary


Steve Grimshaw, CEO of Caliber

Collision, believes customer

empathy is key in growing his

business.

BY GLENN HUNTER PUBLISHED IN D CEO MARCH 2017 PHOTOGRAPHY BY

JOSH BLAYLOCK

HOW CALIBER COLLISION IS DOMINATING THE INDUSTRYCEO Steve Grimshaw has expanded locations and increased revenue for the

Lewisville-based company.

If you own a motor vehicle, it’s predicted you’ll have an accident once every 10 to 12 years. Whenever one happens it can trigger a major hassle, with out-of-pocket costs, work disruptions, and angst over finding an honest, efficient repair shop. It’s an ordeal that Steve Grimshaw—CEO since 2009 of Caliber Collision, the nation’s largest collision-repair outfit—knows well and has confronted head-on.

Before he joined the company, Lewisville-based Caliber “had a good reputation for fixing cars from a quality perspective, but nothing else. It was lacking a focus on customers,” Grimshaw says. “So, we designed systems and processes to focus on the customer—managing the customer, explaining everything, showing empathy, communicating that [repair] is a process. They must be fully satisfied … and you have to knock it out of the park.”

Under Grimshaw’s leadership, Caliber—whose tagline is “Restoring the rhythm of your life”—seems to have knocked quite a few out of the park. The company has increased its number of locations, from 68 to more than 460, in states like Texas, California, and Arizona, and its revenue, from $280 million to $1.65 billion. Today, Caliber dominates the $40 billion U.S. collision-repair

industry, which is highly fragmented with tens of thousands of small, mom-and-pop shops. Caliber and three other big companies—including Dallas-based Service King—together own only about 12 percent of the market.

In addition to spending on basic services for customers such as damage repair, parts replacement, painting and refinishing, Caliber ponies up at least $10 million a year on “personal development training” for its managers and staff. That’s especially important because the company has grown so rapidly, adding a total of 114 new sites in 2016 alone, for example.

Helping with the company’s expansion spree has been Tim Patterson, managing director and head of the Toronto office for Ontario, Canada-based OMERS Private Equity, which makes private equity investments for one of Canada’s largest pension funds. Patterson joined the Caliber board of directors after OMERS snapped up 75 percent of the Texas company for an undisclosed sum in 2013.

“Steve is a big reason why OMERS was so interested in Caliber,” Patterson says of the chief executive. “He’s a great leader. He has a natural ability to inspire people to achieve great things as a team.”

The private equity firm is “bullish” on Caliber’s growth prospects, Patterson goes on, since “insurance companies are pushing more and more volume to large operations like Caliber, because they can offer better-quality service overall. They have the IT infrastructure and can provide faster turnaround times for repairs. That’s a big deal, because of the rental-car expense [to the insurance carrier]. Large operations also have higher customer satisfaction ratings, making for a win-win-win all around.”

With roughly 10,000 employees now—up from 1,600 when Grimshaw came aboard—Caliber foresees adding 120 to 150 new locations in 2017, boosting its annual revenue to about $2.5 billion. It’s all the result of his “restoring lives” focus, Grimshaw contends. “We’re in the customer service business,” he says. “We just happen to fix cars.”

Source: www.dmagazine.com

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Name Caliber Collision

Tenant Caliber Bodyworks of Virginia, Inc Delaware Corporation

Guarantee CH Hold Corp

Rent Commencement October 1, 2017

Rent Expiration September 30, 2032

Original Lease 15 Years

Options Two (2), Five (5) Year

NOI Gross Annual Rent - Less Taxes and $0.15 Reserve

Taxes

Commencing on the fifth (5) anniversary of the commencement date and continuing through the remainder of the term and any extension, tenant shall pay landlord as additional rent tenants pro rate share of all costs of ad valorem taxes that are incurred by or assessed against the premises.

Rent Increases

Annual rent will increase by 6% in year 6 of lease term. A CPI increase will occur every third (3) year thereafter with a maximum 6% increase, extending through the option periods.

Tenant Responsibilities Parking lot (other than replacement), landscaping

Landlord Responsibilities

Roof, skylights, structure, in ground plumbing, parking lot replacement, major HVAC repairs that cannot be reasonably repaired (HVAC replacement) landlord pays taxes and needs to carry property insurance policy – tenant also carries insurance against personal property and carries general liability insurance, insuring landlord.

INCOME & EXPENSES

Potential Gross Income $867,360

Non-Reimbursable Expenses -

Taxes < $104,076 >

Reserves - $0.15/SF* < $8,100 >

Net Operating Income (NOI) $755,184

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Lease Overview


$2.5 Billion Revenue

Caliber Collision Locations

Rapid Growth

As of 2017 Caliber Collision has over $2.5 Billion in

revenue

There are currently over 500+ locations throughout

the US

Since 1997 Caliber has had continuous growth over

20+ years

Insurance Companies

Insurance companies choose Caliber Collision for

fast repairs and service

# Location Annual Rent Taxes Reserves @ $0.15/SF Total SF Term Lease Expiration Options

A Purcellville, VA $204,900 $31,685 $2,025 $171,190 13,500 15 Yrs 9/30/2032 2 @ 5 Yrs

B Leesburg, VA $236,400 $27,571 $1,875 $206,954 12,500 15 Yrs 9/30/2032 2 @ 5 Yrs

C Sterling, VA $151,260 $15,946 $1,350 $133,964 9,000 15 Yrs 9/30/2032 2 @ 5 Yrs

D Gainesville, VA $274,800 $28,874 $2,850 $243,076 19,000 15 Yrs 9/30/2032 2 @ 5 Yrs

Total $867,360 $104,076 $8,100 $755,184

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Portfolio Summary

A B

D# Address City State

A 480 North 21st Street Purcellville VA

B 4 Cardinal Park Drive SE Leesburg VA

C 9 Bryant Court Sterling VA

D 7700 Progress Court Gainesville VA

C


Gainesville

LeesburgPurcellville

Location Overview

HerndonSterling

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480 North 21st Street | Purcellville, VA


Subject Site

Harry Byrd Hwy 26,000 VPD77

Corcoran Brewing

Loudoun Lumber Co.

Castle Storage

North 21st St 5,300 VPD

Loudoun Valley High School

Downtown Purcellville West Main Street

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480 North 21st Street | Purcellville, VA

NOI after Deductions* $171,190

Rent/Month $17,075

Rentable SF 13,500+/- SF

Land Area 2.7+/- Acres


Lease Type* NN

Lease Term 15 Years

Increases6% Increase in Year 6, CPI Increase

Every 3rd Year, 6% Max

Zoning PV: CM1

Financial Summary - Purcellville

DemographicsRadius 3 Miles 5 Miles 10 Miles2017 Population 17,989 26,275 86,678

2017 Median Age 36.5 38.6 38.7

2017 Total Households 5,664 8,533 30,071

2017 Average Household Size 3.12 3.04 2.85

2017 Median Household Income $122,565 $127,084 $109,227

2017 Average Household Income $145,360 $153,213 $137,925

Highlights • Located in Mixed-Use Office/Industrial Park

• Western Loudoun location off Route 7

• Washington, DC suburb; 15% projected population growth 2017-2021

• Average HH income of $145,360 within 3 miles

* Refer to page 5

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4 Cardinal Park Drive SE | Leesburg, VA


Leesburg Fire Co Station 20

Subject Site

Harry Byrd Hwy 53,000 VPD

7

Fort Evans Plaza

Cardi

nal P

ark Dr

SE 5,

700 V

PDWashington

ARTCC

Leesburg Plaza

Village of Leesburg

6 miles away

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4 Cardinal Park Drive SE | Leesburg, VA


Rent/Month $19,700




Lease Type* NN

Lease Term 15 Years



Zoning LB: B3

Use Auto Repair/ Corporate Offices


2017 Median Age 35.2 25.8 35.8





Financial Summary - Leesburg Highlights • Top rated - Loudoun County by Forbes, Inc.

• Signalized intersection at Cardinal Park Drive and Route 7

• Area of activity includes office/industrial and retail


• Collision Center / Corporate Headquarters for the Mid-Atlantic and Northeast regions

* Refer to page 5

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9 Bryant Court | Sterling, VA


Subject SiteSully Rd 113,000 VPD

Old Ox Rd 37,000 VPD

Dulles Greenway 49,000 VPD

Industrial Park Center

Dulles International Airport

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9 Bryant Court | Sterling, VA


Rent/Month $12,605




Lease Type* NN

Lease Term 15 Years



Zoning PD-GI


2017 Median Age 33.4 35.2 36.5





Financial Summary - SterlingHighlights

• Top rated - Loudoun County by Forbes, Inc.

• Easy access to Route. 28/Dulles Greenway/Pacific Blvd

• Heavily zoned industrial / data center uses


• Long standing low vacancy sub-market with <6% Vacancy

* Refer to page 5

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7700 Progress Court | Gainesville, VA


Virginia Gateway

Subject Site

Wellington Rd 14,000 VPD

I-66 128,000 VPD

Linton Hall Road

Virginia Gateway

Jiffy Lube Live

66

Heritage Plaza

Industrial Buildings

Gainesville Middle School

I-66 128,000 VPD

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7700 Progress Court | Gainesville, VA


Rent/Month $22,900




Lease Type* NN

Lease Term 15 Years



Zoning M1


2017 Median Age 31.9 35.2 35.8





Financial Summary - GainesvilleHighlights

• Prince William County 12th ranked county by Forbes, Inc.

• Signalized intersection south of I-66 exit

• Significant retail development presence in area


• PWC M-1 Zoning / Allowing for rare sought after outside storage capacity

* Refer to page 5

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toward restoring the rhythm of your life – it’s what drives Caliber.

The Executive Team, Central Support Staff and Customer Call Center are headquartered in Lewisville, TX, just minutes north of Dallas/Fort Worth International Airport.

CommitmentAt Caliber, the word “commitment” is rooted in their DNA. It is the cornerstone upon which they have built their business and relationships. Their purpose is to restore their customers to the rhythm of their lives. Caliber’s vision is to be the company that improves the image of the collision repair experience. Their mission is to become the collision repair provider of choice in every community they serve. The only way to achieve this is through steadfast commitment to customers.

This means you can expect consistently high quality, accurate estimates and on-time delivery at every Caliber location.

About Caliber CollisionCaliber Collision didn’t get to be the nation’s

largest collision repair company by accident.

It’s taken an unyielding commitment to being

the collision repair center of choice in every

community they serve – a vision that began

when the company was founded in 1997 and

continues strong to this day.

To achieve this, they were not just part of the collision repair industry - they lead it.

Not only by setting new standards in customer service, but also by implementing

cutting edge technology at every turn. This is how they have built a company with

more than 500 convenient, state-of-the-art repair centers and growing, and why

hundreds of thousands of people entrust their vehicles to them every year. So

when you hand over your keys to Caliber Collision, you’re taking the first step

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Tenant Overview


JONATHAN W HIPPPRESIDENT & CEO


BRIAN O’HEARDIRECTOR


Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

South Florida200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (954) 302-7365

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

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