The Chetek Group of Marcus & Millichap, as exclusive adviser, is pleased to present this opportunity to acquire a fee-simple interest in a 24,190-square foot Caliber Collision facility located in Georgetown-Austin, Texas (the “Property”). Georgetown is an affluent and rapidly growing suburb of Austin, conveniently located 12 miles north of the city limits. Over the last 10 years, the area has more than doubled in population density, expanding by over 55% within a 5-mile radius of the property (82,730 current residents) with an average household income of $106,745 dollars. It was the 7th fastest growing city in the US in 2019 and is expected to grow by an additional 17% by 2025.
Caliber Collision opened this location in 2017 after strategically selecting a site which has successfully served the area as an automotive-repair shop since it was acquired by current ownership in 2013. Prior to that, the building was used as a Honda motorcycle dealership, due to its highly desirable location along I-35 in what is considered the “automotive corridor” of North-Austin. The Property was renovated in 2017 prior to Caliber’s lease commencement, and there are approximately seven years remaining on the initial term. The lease is backed by a corporate guarantee from Caliber Collisions (CH Hold Corp – Delaware LLC), and contains favorable two percent annual increases throughout the initial term and in each of the two, five-year renewal options.
The Property is being offered free and clear of debt for $5,788,000 which is a 5.5 percent cap rate.
Corporate guaranteed lease by CH Hold Corp – Caliber Collision is the largest and fastest-growing collision repair company in the U.S. with 1,100+ locations in 39 states (and growing)
The company booked more than $4 billion in revenue in 2019
Caliber has strategic partnerships with numerous car dealerships and insurance carriers, including: AAA, Geico, Farmers, Liberty Mutual, Allstate, USAA, and more
Caliber Collision exercises first renewal options at a rate of 98% across entire portfolio
Favorable 2% annual rent increases provide a strong hedge against inflation
Hellman & Friedman, one of the most experienced and successful investment organizations in the private equity industry with over $25 billion in total assets, is the majority owner after the Caliber-Abra merger in 2019. OMERS, one of Canada’s largest defined benefit pension plans with $97 billion in net assets as of 2018 and an S&P Credit Rating of “AA+”, remains a significant minority partner