Safelite AutoGlass

Safelite AutoGlass
OFFERING MEMORANDUM
Mobile, Alabama
Net Lease Investment Services
Andrew Bogardus
415-677-0421
andy.bogardus@dtz.com
Lic #00913825
Christopher Sheldon
415-677-0441
chris.sheldon@dtz.com
Lic #01806345
Douglas Longyear
415-677-0458
doug.longyear@dtz.com
Lic #00829911
Sonny Culp
205-380-1080
sonnyc@grahamcompany.com
AL Lic #000029566-0
Net Lease Investment Services
Disclaimer
The information contained in this marketing brochure (“Materials”) is proprietary
and confidential. It is intended to be reviewed only by the person or entity receiving
the Materials from DTZ (“Agent”). The Materials are intended to be used for
the sole purpose of preliminary evaluation of the subject property/properties
(“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial,
property, and market information to a prospective purchaser to enable it to
establish a preliminary level of interest in potential purchase of the Property. The
Materials are not to be considered fact. The information contained in the Materials
is not a substitute for thorough investigation of the financial, physical, and market
conditions relating to the Property.
The information contained in the Materials has been obtained by Agent from
sources believed to be reliable; however, no representation or warranty is made
regarding the accuracy or completeness of the Materials. Agent makes no
representation or warranty regarding the Property, including but not limited to
income, expenses, or financial performance (past, present, or future); size, square
footage, condition, or quality of the land and improvements; presence or absence
of contaminating substances (PCB’s, asbestos, mold, etc.); compliance with laws
and regulations (local, state, and federal); or, financial condition or business
prospects of any tenant (tenants’ intentions regarding continued occupancy,
payment of rent, etc). A prospective purchaser must independently investigate
and verify all of the information set forth in the Materials. A prospective purchaser
is solely responsible for any and all costs and expenses incurred in reviewing the
Materials and/or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer
set forth herein.
USED CARS
65
90
DEALERS AUTO
AUCTION
90
65
Net Lease Investment Services
Investment Offering & Highlights
The Offering
•
An industrial building located in Mobile, Alabama leased to Safelite
Fullfillment, Inc. through February 28, 2025
•
Price – $1,971,200 Cap Rate – 6.75%
Lease / Tenant
•
Safelite AutoGlass is the largest auto glass replacement company in the
U.S.
•
Over 10 years remaining on the lease
Real Estate
•
Low rent
•
Low price per square foot
•
Interstate 65 frontage – 81,190 average car traffic count per day
Area Strengths
•
Mobile has a dynamic economy with 70 aerspace companies and the
largest deepwater port along the Central Gulf Coast
Safelite
SKF
FedEx
AutoGlass
USA,
Ground
Inc.
21i
Net Lease Investment Services
Investment Overview
Location
Annual Rent
1650 S Beltline Highway, Mobile, Alabama
Investment Years
Lot Size
Approximately 1.28 acres – 55,757± square feet
Improvements
A one story, 23,467± square foot (per the lease) concrete block vehicle
glass repair/replacement facility, including storage and warehouse use for
SAFELITE AUTOGLASS.
New Improvements — The owner recently spent approximately $225,000
for a new roof, new skylights, exterior painting, parking area slurry coat and
restriping, and other improvements.
Annual Rent
Return
07/01/13 – 02/28/20
$133,056
6.75%
03/01/20 – 02/28/25
$143,040
7.26%
03/01/25 – 02/28/30 (Option 1)
$150,192
7.62%
03/01/30 – 02/28/35 (Option 2)
$157,704
8.00%
Price: $1,971,200 – 6.75% Cap Rate
Rent Per Square Foot $5.67 net per year – $0.47 net per month
Price Per Square Foot $84
Lease
Leased to SAFELITE FULLFILLMENT, INC. from June 19, 2013 until February
28, 2025. The current annual net rent of $133,056 increases to $143,040
on March 1, 2020. The lease is net with the tenant responsible for all
taxes, insurance and maintenance. The landlord is responsible for roof and
structure. There are two 5-year options to renew with 5% rental increases
each option period.
Safelite AutoGlass
2
Net Lease Investment Services
Possible Financing
10 Year Loan - 50% LTV
LOAN TERMS
Amortization (Yrs)
LTV
Interest
Constant
30
50%
4.50%
6.08%
CAPITALIZATION
Price
Loan
Equity
$1,971,200
< 985,600>
$ 985,600
CASH FLOW
Rent
Debt Service
Cash Flow
$133,056
< 59,927>
$ 73,129
Cash on Cash
7.42%
CASH FLOW
Rent
Debt Service
Cash Flow
$133,056
< 71,912>
$ 61,144
Cash on Cash
7.75%
10 Year Loan - 60% LTV
LOAN TERMS
Amortization (Yrs)
LTV
Interest
Constant
25
60%
4.40%
6.08%
CAPITALIZATION
Price
Loan
Equity
$1,971,200
<1,182,720>
$ 788,480
Safelite AutoGlass
3
Net Lease Investment Services
Safelite AutoGlass / Belron
SAFELITE AUTOGLASS is a member of the Safelite Group (privately held), the
world’s largest family of retail auto glass companies.
Based in Columbus, OH, Safelite Group, a subsidiary of Belron, is a multifaceted
auto glass and claims management service organization. The company is
composed of four major business operations:
•
Safelite Fulfillment, Inc., – Auto glass fulfillment services, operating under
the trade names Safelite AutoGlass and Giant Glass.
•
Safelite Solutions LLC and Alliance Claims Solutions, Safelite Group’s claims
processing operation, which processes P+C claims for insurance companies.
•
Service AutoGlass, a national provider of wholesale vehicle glass products
as well as installation and repair materials and tools.
•
Safelite Glass Corp., the company’s glass manufacturing unit.
•
Safelite AutoGlass
BELRON is the world’s largest dedicated vehicle glass repair and replacement
company, operating in 34 countries across five continents with over 24,000
employees. Belron operates through a variety of brands including Carglass, Safelite
Autoglass, O’Brien, Apple Auto Glass, Glass Medic and Speedy Glass.
Website: www.belron.com
The retail auto glass division of Safelite specializes in replacing all types of vehicle
glass damage. In addition to replacement services, the company operates a team
of repair specialists dedicated to delivering high quality windshield repairs.
As the largest auto glass repair and replacement organization in the U.S., the
company’s 3,700 technicians serve more than 4.1 million customers each year and
ensure the highest quality of work on each job they do.
Safelite AutoGlass provides convenient mobile auto glass repair and replacement
services, available to more than 95% of drivers in all 50 states.
Service AutoGlass is a national provider of wholesale vehicle glass products as
well as installation and repair materials and tools. Service AutoGlass provides
service to vehicle glass companies through a network of 91 warehouses located
throughout the U.S.
Website: www.safelite.com
Safelite AutoGlass
4
Location
65
The subject property is located at 1636-1650 South Beltline
90
Highway
in Mobile, Alabama. South Beltline Highway is a
frontage road on the west side of Interstate 65. The neighboring
properties along South Beltline Highway are service and
retail and industrial properties. I-65 is easily accessed at the
Government Road and Cottage Hill Road interchanges. The
building is highly visible from Interstate 65.
Most of the area’s car dealers are located across I-65 and
along Government Blvd.
90
65
Safelite AutoGlass
7
40
Memphis
Area Map
40
4
85
65
30
Atlanta
Birmingham
20
20
55
75
16
85
65
Shreveport
20
20
16
Jackson
65
75
59
49
55
Mobile
10
10
10
Pensacola
Tallahassee
10
New Orleans
75
Safelite AutoGlass
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Net Lease Investment Services
Mobile
Mobile is located in the southwest quadrant of Alabama, approximately 54 miles northwest
of Pensacola, FL; 74 miles northeast of Gulfport, MS; and 144 miles northeast of New Orleans,
LA. Mobile is the third most populous city in Alabama, the county seat of Mobile County,
Alabama, and the largest municipality on the Gulf Coast between New Orleans, Louisiana,
and St. Petersburg, Florida. Mobile has a population of approximately 195,111. Mobile County
is the principal municipality of the Mobile MSA (the third largest statistical area in Alabama)
and comprises the majority of the MSA’s population of 412,992.
• Forbes included Mobile in its list of Best Places for Business and Careers.
• Bloomberg ranked Mobile as #6 in its list of Least Expensive Housing Markets.
Economy
Mobile has multiple major industries contributing to its economy including aerospace, steel,
ship building, retail services, construction, medicine, and manufacturing, which are highlighted
on the following pages.
Government Plaza City-County
Administration Building
Safelite AutoGlass
7
Airbus FAL Alabama 3D aerial view
Net Lease Investment Services
Airbus’ first U.S.-based production
facility – which will build A320 Family
jetliners at the Brookley Aeroplex in
Mobile, Alabama, beginning in 2015 –
will produce between 40 and 50 aircraft
annually by 2018
Mobile Aeroplex at Brookley
The Mobile Aeroplex at Brookley is a mixed-use industrial complex and airport
located 3 miles south of the central business district of Mobile. The Aeroplex is
the largest industrial and transportation complex in the Central Gulf Coast region
with over 70 companies, spreading over 1,650 acres. Notable employers at the
Aeroplex include Airbus North American Engineering, ST Aerospace Mobile (a
division of ST Engineering), and Continental Motors.
Airbus Group, Inc.
Airbus Group, Inc. (formerly known as European Aeronautic Defense and Space
Company (EADS) North America) is the world’s second largest aerospace and
defense company. Airbus North America participates in U.S. Department of
Defense programs, in some cases as a prime contractor. It employs approximately
2,000 people and had 2011 revenues of $1.3 billion. The company oversees several
subsidiaries including Airbus Helicopters, Inc., Cassidian Communications, Airbus
Military North America, Fairchild Controls, and EADS North America Test and
Services.
Airbus has started construction of a $600 million final assembly facility in Mobile
for its popular A320 jetliner. Aircraft assembly is planned to begin at the facility
in 2015 with the first delivery of a A320 jetliner in 2016. At full capability, the
assembly line and associated facilities will employ 1,000 highly skilled workers.
Airbus Military Americas facilities are located at the Mobile Regional Airport.
Port of Mobile
The Port of Mobile, located along the Mobile River, is the only
deep-water port in Alabama. The Port of Mobile has public,
deepwater terminals with direct access to 1,500 miles of inland
and intracoastal waterways serving the Great Lakes, the Ohio and
Tennessee river valleys (via the Tennessee-Tombigbee Waterway),
and the Gulf of Mexico. The Alabama State Port Authority owns
and operates the public terminals at the Port of Mobile. The public
terminals handle containerized, bulk, break bulk, roll-on/rolloff, and heavy lift cargoes. The port is also home to private bulk
terminal operators. The container, general cargo and bulk facilities
have immediate access to two interstate systems and four Class I
railroads. Additionally, the CG Railway operates from the port as a
rail ferry service to Coatzacoalcos, Veracruz, in Mexico.
Net Lease Investment Services
The Port of Mobile is the largest break bulk forest products port in
the United States. The Alabama State Port Authority’s McDuffie
Terminal is one of the largest coal terminals in the United States.
The port was the fourth largest exporter of coal during 2012, with
the majority of exports for metallurgical processes.
In 2010, the Alabama State Port Authority announced that it
planned to spend $360 million over the following five years to
improve infrastructure at the port. The improvements include
land acquisition, new rail and inter-modal yards, cargo terminal
improvements and enhancements to improve servicing of deepwater oil and gas field vessels and equipment. Since 2000, the
Port Authority has undergone nearly $500 million in capital
improvements and expansion projects to serve containerized,
bulk and break bulk commodities. Improvements include a new
rail ferry terminal, a steel terminal to service the $4.6 billion steel
facility in Calvert, Alabama, new warehousing, a new container
terminal, and expansions at the McDuffie Coal Terminal.
Safelite
FedEx
AutoGlass
Ground
9
7
Net Lease Investment Services
Mobile (continued)
Healthcare
Mobile serves the central Gulf Coast as a regional center for medicine, with over 850
physicians and 175 dentists. There are four major centers within the city limits:
•
Mobile Infirmary Medical Center, the largest nonprofit hospital in the state With 704
beds;
•
Providence Hospital, 349 beds;
•
The University of South Alabama Medical Center, a teaching hospital with Mobile’s
only Level I Trauma Center and regional burn center, 346 beds;
•
Springhill Medical Center, Mobile’s only for-profit facility with 252 beds.
University of South Alabama
The University of South Alabama (USA) is a public, national research university located in
Mobile, Alabama. USA is the only major public university along the upper Gulf Coast with ten
colleges and schools, including one of Alabama’s two state-supported medical schools. The
university has an enrollment of over 15,000 students and has awarded over 75,000 degrees.
The University has the following research centers and institutes: Center for Design &
Performance Improvement, Center for Real Estate and Economic Development, Center for
Archaeological Studies, Center for Forensics and Information Technology Security, Center for
Lung Biology, South Alabama Research and Inservice Center, and Mitchell Cancer Institute
(MCI).
University of South Alabama Mitchell Cancer Institute
Safelite
FedEx
AutoGlass
Ground 107
Net Lease Investment Services
Mobile (continued)
Transportation
Mobile is served by two major interstate highways, Interstates 10 and 65. I-10 connects
Jacksonville, FL with Los Angeles, CA and passes through Pensacola, FL, Mobile, AL, New
Orleans, LA, Baton Rouge, LA, Beaumont, TX, Houston, TX, San Antonio, TX and Phoenix AZ.
I-65 runs north/south and connects Mobile with Birmingham, AL, Huntsville, AL, Nashville
TN, and Louisville, KY. The city is also served by US Highways 31, 43, 45, 90 and 98 which
radiate from Mobile traveling east, west, and north.
Rail
Mobile is served by four Class I railroads, including the Canadian National Railway (CNR),
CSX Transportation (CSX), the Kansas City Southern Railway (KCS), and the Norfolk Southern
Railway (NS). The Alabama and Gulf Coast Railway (AGR), a Class III railroad, links Mobile to
the Burlington Northern and Santa Fe Railway (BNSF) at Amory, Mississippi. These railroads
converge at the Port of Mobile, which provides intermodal freight transport service to
companies engaged in importing and exporting. Other railroad service in the area includes the
CG Railway (CGR), a rail ship service to Coatzacoalcos, Veracruz, and the Terminal Railway
Alabama State Docks (TASD).
Airport
The nearest international airport is Louis Armstrong New Orleans International Airport
(MSY), located 155 miles southwest of Mobile. The carriers serving this airport include
AirTran, Alaska, American, Delta, Frontier, JetBlue, Spirit, Southwest, United, and US Airways.
The closest regional airport is Pensacola International Airport which is located 54 miles to
the east. The carriers serving this airport include American, Delta, Frontier, United, and US
Airways.
Demographics
2014 Summary
3 miles
5 miles
7 miles
Population
66,124
162,203
229,601
Households
27,256
67,303
92,608
Families
16,462
40,709
58,002
2.37
2.35
2.42
Owner Occupied Housing Units
13,503
36,123
52,537
Renter Occupied Housing Units
13,753
31,180
40,071
34.2
36.4
36.7
Median Household Income
$35,744
$36,872
$36,917
Average Household Income
$50,316
$53,172
$52,864
Average Household Size
Median Age
RSA Bank Trust Building