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O F F E R I N G M E M O R A N D U M
1101 N. D STREETSACRAMENTO, CA
03 EXECUTIVE SUMMARY
04 FINANCIAL OVERVIEW
06 TENANT OVERVIEW
09 AREA OVERVIEW
TABLE OF CONTENTS
O F F E R I N G M E M O R A N D U M
1101 N. D STREETSACRAMENTO, CA
PROPERTY DETAILS Approximately 7 years remaining
on current lease with Service King
Above market 2% annual increases, great hedge against inflation
Low price point for Collision Center only $2,145,000
Low Rent/SF - Service King is currently only paying $6.08/SF/year, about 50% below market for comparable spaces and substantially below area rent
LOCATION Strategically located in the
Downtown of Sacramento, undergoing major revitalization efforts.
High Income Market - Average Incomes Above $60,000
High Density - Approximately 165,000 residents in a three mile radius to the property
TENANT Service King is one of the largest
Collision Repair companies in the United States with over 340 Locations in 24 Different States
Significant Private Equity Funding - Blackstone Group LP and Carlyle LP backed, with Blackstone Group LP with controlling shares
Service King is estimated to have over $1 Billion in annual revenue and employs more than 6,000 people
Service King is capitalizing on the consolidation of the rapidly growing Collision Industry, a $33+ billion industry in US and Canada
Great Hedge Against E-Commerce
EXECUTIVEOVERVIEW
SERVICE KING COLLISION REPAIR 3
FINANCIALOVERVIEWEXECUTIVE SUMMARY ANNUALIZED OPERATING DATA
Property Name Service King
Property Street 1101 N D Street
City, State, Zip Sacramento, CA 95811
GLA ±16,747 SF
Lot Size 0.99 AC (43,124 SF)
Year Built 1986
Monthly Rent Annual Rent Rent/SF Cap Rate
2019 $8,490 $101,876 $6.08 4.75%
2020 $8,659 $103,913 $6.20 4.84%
2021 $8,833 $105,992 $6.33 4.94%
2022 $9,009 $108,112 $6.46 5.04%
2023 $9,189 $110,274 $6.58 5.14%
2024 $9,373 $112,479 $6.72 5.24%
2025 $9,561 $114,729 $6.85 5.35%
2026 $9,752 $117,023 $6.99 5.46%
2027 $9,947 $119,364 $7.13 5.56%
SERVICE KING COLLISION REPAIR 4
FINANCIALOVERVIEWFINANCIAL HIGHLIGHTS TENANT SUMMARY
Tenant Trade Name Service King
Type of Ownership Fee Simple
Lease Guarantor Service King Paint and Body, LLC
Lease Type NN+
Original Lease Term 10.00 Years
Rent Commencement Date 5/6/2017
Lease Expiration Date 5/31/2027
Term Remaining 7 Years
Increases 2% Annual Increases
Options 3, 5-Year Options
LIST PRICE
$2,145,000
CAP RATE
4.75%
TERM REMAINING
7 YEARS
SERVICE KING COLLISION REPAIR 5
TENANTOVERVIEWService King Collision Repair Centers is a national leader in collision repair, operates in 24 states with over 340 locations, and plans to continue growing. Service King Collision Repair Centers offers high-quality repairs with a lifetime warranty, free estimates, on-site rental cars, and an overall superior customer service experience.
In 2012, as one of the largest independent operator of collision repair centers in the U.S., global asset manager, The Carlyle Group, closes on its acquisition of majority ownership of Service King Collision Repair Centers. In 2014, after Service King triples its revenue over a twoyear period, premier global investment and advisory firm Blackstone purchases majority ownership of the company. The Carlyle Group remains a minority investor as do Service King internal shareholders. In 2015, Service King surpasses $1 billion in annual revenue.
StrategyService King technicians are rigorously trained and certified to work with every make and model of vehicle on the road. No matter what type of car, the veteran team at Service King is up to the job. The collision repair specialists lead the industry in everything from fender repair to dent repair and everything in between. Many Service King collision repair centers are also certified to perform highly specialized repairs, such as aluminum repair and paintless dent repair.
Ownership Non-Public
Parent Company Trade Name Service King Holdings, LLC
Website www.serviceking.com
# Of Locations ±340
Headquartered Richardson,Texas
Year Founded 2012
SERVICE KING COLLISION REPAIR 6
SURROUNDINGTENANTS
GOLD STARINSULATION
SHERWINWILLIAMS
SUBWAY
BODYTRIBEFITNESS
RV Storage
PUBLIC STORAGE
PROPOSED LIGHT RAIL STATION
DOS RIOS HOUSING COMMUNITY(480 UNITS)
PRODUCE WAREHOUSE
MCDONALD’SMARTIN SPROCKET & GEAR WAREHOUSE
VEHICLE STORAGE
DOS RIOS ST 12TH ST - 15,000 VPD
RICHARDS BLVD - 27,000 VPD
SUBJECT PROPERTY
SERVICE KING COLLISION REPAIR 7
Sacramento, CAProperty Name Service King
Property Address1101 N D Street Sacramento, CA 95811
Number of Stories One
Year Built 1986
GLA ±16,747
Lot Size ±0.99 Acres (43,124 SF)
Type of Ownership Fee Simple
Landscaping Professional
Topography Generally Level
Demographics1 Mile 3 Mile 5 Mile
Population
2024 Projection 10,863 156,964 365,254
2019 Estimate 10,356 151,254 350,497
Percent Change: 2019-2024 4.90% 3.77% 4.21%
Households
2024 Projection 4,222 67,394 146,578
2019 Estimate 3,961 64,875 140,884
Percent Change: 2019-2024 6.59% 3.88% 4.04%
Income
2019 Est. Average Household Income $65,495 82,255 $80,211
AREA OVERVIEW
SERVICE KING COLLISION REPAIR 8
EconomySacramento has experienced economic growth in the last ten years. Unemployment has fallen below 6 percent and job growth is very evident in industries like technology, construction and healthcare. Healthcare is a major industry and Sutter Memorial Hospital and UC Davis Medical center employ a large number of residents. The government continues to be the region’s largest employer and continues to remain stable.
Sacramento’s economy has been fueled by recent job growth in leisure and hospitality, which saw a 12 percent increase in 2016 compared to 2015. This growth in tourism is largely due to Sacramento’s ability to host large events and conventions. Recently these large events have been professional sporting events, like the yearly cycling competition, the Amgen Tour of California and the California International Marathon.
Top EmployersEmployer Name # of Employees
State of California 69,763
Sacramento County 11,450
UC Davis Health System 7,725
Dignity Health/Catholic Healthcare West 7,069
Intel 6,633
Kaiser Permanente 6,360
Sutter Health 5,765
Elk Grove Unified School District 5,021
Sacramento City Unified School District ,000
San Juan Unified School District 4,700
AREAOVERVIEW
SERVICE KING COLLISION REPAIR 9
O F F E R I N G M E M O R A N D U M
1101 N. D STREETSACRAMENTO, CA
Cushman & Wakefield-Irvine | 18111 Von Karman Ave., Suite 1000, Irvine, CA 92612 | cushmanwakefield.com
OFFERING MEMORANDUM DISCLAIMERThe material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Property described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the
recipient of this material, and is not to be used for any purpose or made available to any other person without the express written consent of Cushman & Wakefield of California, Inc. (“Broker”). This Offering Memorandum was prepared by
Broker solely for the use of prospective purchasers of (the “Property”). Neither Broker, the “Seller”nor any of their respective officers, employees or agents, make any representation or warranty, express or implied, as to the completeness
or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this package or any of its contents. Seller reserves the right to eliminate any
portion or all of the Property from any offer for sale at any time prior to the completion of a binding contract of sale executed by both Seller and a prospective purchaser. Prospective purchasers of the Property are advised (i) that changes
may have occurred in the condition of the Property since the time of this Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that
they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Seller and, therefore, are subject to material variation. Prospective purchasers of the Property are advised
and encouraged to conduct their own comprehensive review and analysis of the Property. The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Seller and Broker expressly reserve the right, at
their sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller
shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until a written agreement satisfactory to the Seller has been fully executed, delivered,
and approved by the Seller and any conditions to the Seller thereunder have been satisfied or waived. This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering
Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity
without the prior written authorization of Broker and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Seller or Broker. The terms and conditions stated in this section will relate to all
of the sections of the package as if stated independently therein. If, after reviewing this package, you have no further interest in purchasing the Property at this time, kindly return this brochure to the Broker at your earliest possible convenience.
JACK CHANG Managing Director +1 949 372 4917 jack.chang@cushwake.com Lic. #01873010
JESSICA LAW Associate +1 949 372 4891 jessica.law@cushwake.com Lic. #02086692
For more information, please contact:
JOSEPH LISING Managing Director +1 949 372 4896 joseph.lising@cushwake.com Lic. #01248258
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