Caliber EXCLUSIVE Collision LISTING Portfolio DC Metro / Virginia Caliber Collision Portfolio (4 Locations) DC Metro / Virginia Largest Growing / Fastest Repair Collision Center In The USA Representative Photo JONATHAN W HIPP PRESIDENT & CEO (703) 787-4725 jhipp@calkain.com BRIAN O HEAR DIRECTOR (571) 449-8079 bohear@calkain.com CALKAIN.COM 1
Financial Summary Portfolio Summary Asking Price $12,600,000 Cap Rate 6.00% Purcellville, Virginia Annual Rent After Deductions $755,184 Rent/Month $72,280 Total Rentable Square Feet Tenant Name Guarantor Ownership Type Lease Type* Lease Term Remaining 54,000+/- SF Caliber Collision Corporate Fee Simple NN 15 Years Rent Commencement October 1, 2017 Lease Expiration September 30, 2032 Increases Options Portfolio Highlights Forbes, Inc. Loudoun County top overall county in the USA Median Household Income of $115,574 6% Increase Every 3 Years Two (2), Five (5) Year * Owner responsible for the real estate taxes for first (5) years, tenant responsible for next 10 years. 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 500 th location in March 2017 Leesburg, Virginia Sterling, Virginia Gainesville, Virginia 2
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 INDUSTRY CEO 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, momand-pop shops. Caliber and three other big companies including Dallasbased 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, Canadabased 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 3
Lease Overview 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 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 Options NOI Taxes Rent Increases Two (2), Five (5) Year Gross Annual Rent - Less Taxes and $0.15 Reserve 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. 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 Landlord Responsibilities Parking lot (other than replacement), landscaping 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. 4
Portfolio Summary # 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 Caliber Collision Locations There are currently over 500+ locations throughout the US Rapid Growth Since 1997 Caliber has had continuous growth over 20+ years Insurance Companies Insurance companies choose Caliber Collision for fast repairs and service $2.5 Billion Revenue As of 2017 Caliber Collision has over $2.5 Billion in revenue 5
Location Overview A Purcellville B Leesburg C Sterling Herndon D # Address City State Gainesville 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 6
480 North 21st Street Purcellville, VA Caliber Collision Portfolio DC Metro / Virginia Subject Site North 21st St 5,300 VPD 7 Corcoran Brewing Harry Byrd Hwy 26,000 VPD 7 Castle Storage Loudoun Lumber Co. Loudoun Valley High School Downtown Purcellville West Main Street 7
Financial Summary - Purcellville 480 North 21st Street Purcellville, VA NOI after Deductions* $171,190 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 Rent/Month $17,075 Rentable SF 13,500+/- SF Land Area 2.7+/- Acres Ownership Type Fee Simple Lease Type* NN Lease Term Increases Zoning 15 Years 6% Increase in Year 6, CPI Increase Every 3rd Year, 6% Max PV: CM1 * Refer to page 5 Demographics Radius 3 Miles 5 Miles 10 Miles 2017 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 8
4 Cardinal Park Drive SE Leesburg, VA Caliber Collision Portfolio DC Metro / Virginia Leesburg Fire Co Station 20 Fort Evans Plaza Leesburg Plaza Washington ARTCC Subject Site Cardinal Park Dr SE 5,700 VPD Harry Byrd Hwy 53,000 VPD 7 6 miles away Village of Leesburg 9
Financial Summary - Leesburg 4 Cardinal Park Drive SE Leesburg, VA NOI after Deductions* $206,954 Rent/Month $19,700 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 Average HH income of $141,260 within 3 miles Collision Center / Corporate Headquarters for the Mid-Atlantic and Northeast regions Rentable SF Land Area Ownership Type Lease Type* Lease Term Increases Zoning 12,500+/- SF 1.75+/- Acres Fee Simple NN 15 Years 6% Increase in Year 6, CPI Increase Every 3rd Year, 6% Max LB: B3 Use Auto Repair/ Corporate Offices * Refer to page 5 Demographics Radius 3 Miles 5 Miles 10 Miles 2017 Population 62,800 107,264 278,186 2017 Median Age 35.2 25.8 35.8 2017 Total Households 20,772 35,925 93,530 2017 Average Household Size 2.99 2.97 2.96 2017 Median Household Income $113,943 $122,678 $123,441 2017 Average Household Income $141,260 $151,318 $151,064 10
9 Bryant Court Sterling, VA Caliber Collision Portfolio DC Metro / Virginia Industrial Park Center Subject Site Sully Rd 113,000 VPD Old Ox Rd 37,000 VPD Dulles Greenway 49,000 VPD Dulles International Airport 11
Financial Summary - Sterling 9 Bryant Court Sterling, VA NOI after Deductions* $133,964 Highlights Top rated - Loudoun County by Forbes, Inc. Easy access to Route. 28/Dulles Greenway/Pacific Blvd Heavily zoned industrial / data center uses Average HH income of $142,742 within 5 miles Long standing low vacancy sub-market with <6% Vacancy Rent/Month $12,605 Rentable SF 9,000+/- SF Land Area 1.85+/- Acres Ownership Type Fee Simple Lease Type* NN Lease Term Increases Zoning 15 Years 6% Increase in Year 6, CPI Increase Every 3rd Year, 6% Max PD-GI * Refer to page 5 Demographics Radius 3 Miles 5 Miles 10 Miles 2017 Population 58,275 227,567 604,802 2017 Median Age 33.4 35.2 36.5 2017 Total Households 19,204 78,493 209,910 2017 Average Household Size 3.03 2.89 2.88 2017 Median Household Income $93,671 $115,412 $124,241 2017 Average Household Income $108,565 $142,742 $151,250 12
7700 Progress Court Gainesville, VA Caliber Collision Portfolio DC Metro / Virginia Virginia Gateway Heritage Plaza I-66 128,000 VPD 66 I-66 128,000 VPD Virginia Gateway Wellington Rd 14,000 VPD Industrial Buildings Subject Site Linton Hall Road Gainesville Middle School Jiffy Lube Live 13
Financial Summary - Gainesville 7700 Progress Court Gainesville, VA NOI after Deductions* $243,076 Highlights Prince William County 12th ranked county by Forbes, Inc. Signalized intersection south of I-66 exit Significant retail development presence in area Average HH income of $141,192 within 3 miles PWC M-1 Zoning / Allowing for rare sought after outside storage capacity Rent/Month $22,900 Rentable SF 19,000+/- SF Land Area 2.40+/- Acres Ownership Type Fee Simple Lease Type* NN Lease Term Increases Zoning 15 Years 6% Increase in Year 6, CPI Increase Every 3rd Year, 6% Max M1 * Refer to page 5 Demographics Radius 3 Miles 5 Miles 10 Miles 2017 Population 15,700 62,800 107,264 2017 Median Age 31.9 35.2 35.8 2017 Total Households 15,868 36,281 116,384 2017 Average Household Size 3.22 3.11 3.09 2017 Median Household Income $121,359 $109,922 $107,256 2017 Average Household Income $141,192 $131,804 $129,452 14
Tenant Overview About Caliber Collision Caliber 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 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. Commitment At 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 ontime delivery at every Caliber location. 15
About Calkain 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 History Like 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. $11.5 Billion in Closed Transactions 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) $350 Million in Active Listings JONATHAN W HIPP PRESIDENT & CEO (703) 787-4725 jhipp@calkain.com BRIAN O HEAR DIRECTOR (571) 449-8079 bohear@calkain.com CALKAIN.COM 16
Contact Us Corporate Headquarters Washington, DC 12930 Worldgate Drive Suite 150 Herndon, VA 20170 T: (703) 787-4714 F: (703) 787-4783 South Florida 200 SW 1st Avenue Suite 880 Fort Lauderdale, FL 33301 T: (954) 302-7365 Atlanta 111 Village Parkway, Building 2 Suite 202 Marietta, GA 30067 T: (404) 900-5629 Boston 101 Federal Street Suite 1900 Boston, MA 02110 T: (617) 261-8584 CALKAIN.COM 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 regulations, 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.