SAFELITE AUTOGLASS MOBILE, ALABAMA
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Safelite AutoGlass OFFERING MEMORANDUM Mobile, Alabama Andrew Bogardus Christopher Sheldon Douglas Longyear Sonny Culp 415-677-0421 415-677-0441 415-677-0458 205-380-1080 Andy.Bogardus@cassidyturley.com Chris.Sheldon@cassidyturley.com Doug.Longyear@cassidyturley.com sonnyc@grahamcompany.com Lic #00913825 Lic #01806345 Lic #00829911 AL Lic #000029566-0
Disclaimer
The information contained in this marketing brochure (“Materials”) is proprietary and The information contained in the Materials has been obtained by Agent from sources
confidential. It is intended to be reviewed only by the person or entity receiving the believed to be reliable; however, no representation or warranty is made regarding the
Materials from Cassidy Turley (“Agent”). The Materials are intended to be used for the accuracy or completeness of the Materials. Agent makes no representation or warranty
sole purpose of preliminary evaluation of the subject property/properties (“Property”) regarding the Property, including but not limited to income, expenses, or financial
for potential purchase. performance (past, present, or future); size, square footage, condition, or quality
of the land and improvements; presence or absence of contaminating substances
The Materials have been prepared to provide unverified summary financial, property, (PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and
and market information to a prospective purchaser to enable it to establish a preliminary federal); or, financial condition or business prospects of any tenant (tenants’ intentions
level of interest in potential purchase of the Property. The Materials are not to be regarding continued occupancy, payment of rent, etc). A prospective purchaser must
considered fact. The information contained in the Materials is not a substitute for independently investigate and verify all of the information set forth in the Materials. A
thorough investigation of the financial, physical, and market conditions relating to the prospective purchaser is solely responsible for any and all costs and expenses incurred
Property. 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.
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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 AutoGlass 1
FedEx
SKF USA,
Ground
Inc. 2i
Investment Overview
Location Annual Rent
1650 S Beltline Highway, Mobile, Alabama Investment Years Annual Rent Return
07/01/13 – 02/28/20 $133,056 6.75%
Lot Size 03/01/20 – 02/28/25 $143,040 7.26%
Approximately 1.28 acres – 55,757± square feet
03/01/25 – 02/28/30 (Option 1) $150,192 7.62%
03/01/30 – 02/28/35 (Option 2) $157,704 8.00%
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. Price: $1,971,200 – 6.75% Cap Rate
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. 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
Possible Financing
10 Year Loan - 50% LTV
LOAN TERMS CAPITALIZATION CASH FLOW
Amortization (Yrs) 30 Price $1,971,200 Rent $133,056
LTV 50% Loan < 985,600> Debt Service < 59,927>
Interest 4.50% Equity $ 985,600 Cash Flow $ 73,129
Constant 6.08%
Cash on Cash 7.42%
10 Year Loan - 60% LTV
LOAN TERMS CAPITALIZATION CASH FLOW
Amortization (Yrs) 25 Price $1,971,200 Rent $133,056
LTV 60% Loan Debt Service < 71,912>
Interest 4.40% Equity $ 788,480 Cash Flow $ 61,144
Constant 6.08%
Cash on Cash 7.75%
Safelite AutoGlass 3
Safelite AutoGlass / Belron
SAFELITE AUTOGLASS is a member of the Safelite Group (privately held), the world’s BELRON is the world’s largest dedicated vehicle glass repair and replacement company,
largest family of retail auto glass companies. 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,
Based in Columbus, OH, Safelite Group, a subsidiary of Belron, is a multifaceted auto Apple Auto Glass, Glass Medic and Speedy Glass.
glass and claims management service organization. The company is composed of four
major business operations: Website: www.belron.com
• 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
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 740
Memphis
40
Area Map
85
65
30
Birmingham Atlanta
20
20
55 75
16
85
65
Shreveport 20 16
20
Jackson
75
65
59
49 55
Mobile
10
Tallahassee
10 10 Pensacola 10
New Orleans
75
Safelite AutoGlass 8Mobile
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
Safelite AutoGlass 7
Administration BuildingAirbus FAL Alabama 3D aerial view
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 Fairchild Controls, and EADS North America Test and Services.
The Mobile Aeroplex at Brookley is a mixed-use industrial complex and airport
Airbus has started construction of a $600 million final assembly facility in Mobile for
located 3 miles south of the central business district of Mobile. The Aeroplex is the
its popular A320 jetliner. Aircraft assembly is planned to begin at the facility in 2015
largest industrial and transportation complex in the Central Gulf Coast region with
with the first delivery of a A320 jetliner in 2016. At full capability, the assembly line
over 70 companies, spreading over 1,650 acres. Notable employers at the Aeroplex
and associated facilities will employ 1,000 highly skilled workers.
include Airbus North American Engineering, ST Aerospace Mobile (a division of ST
Engineering), and Continental Motors. Airbus Military Americas facilities are located at the Mobile Regional Airport.
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,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/roll-off, 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.
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 deep-
water 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.
Port of Mobile
FedEx Ground 7Mobile (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 AutoGlass 10
FedEx Ground 7Mobile (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
Average Household Size 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
Median Age 34.2 36.4 36.7
Median Household Income $35,744 $36,872 $36,917
Average Household Income $50,316 $53,172 $52,864
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