Caliber Collision celebrates 25 years as an automotive service leader, recently opening location number 1,500 while operating in 40 US states. Not only was Caliber recognized as one of “America’s Best Large Employers in 2021” by Forbes, but this brand is also a leading NNN lease investment, which is why Westwood Net Lease Advisors has named Caliber Collision our triple net (NNN) Tenant of the Quarter, Q4, 2022.
Caliber Collision Business Outlook
As the last few years have proven, certain retail businesses remain recession-proof, pandemic-proof, and internet-proof, and auto parts and repair fall into that category. According to a Global Market Insights Inc. study, “Automotive collision repair market revenue is anticipated to record a valuation of $310 billion by 2027. A rise in the number of independent repair shops will bolster automotive collision repair market size over the assessment period.”
Caliber Collision, headquartered in Lewisville, Texas, is leading the auto service market with an estimated revenue of $4 billion. In addition to being a stable, reliable NNN lease investment with a lease guarantee by high-credit CH Holding Corp., Caliber Collision and its subsidiaries, Caliber Auto Care, Caliber Glass, and Caliber Fleet, continue to win awards for customer satisfaction and employee care –– the only auto industry company to do so. Caliber currently serves 1.8 million customers annually, and that number is on the rise with each newly opened location.
Caliber Collision NNN Lease Benefits
Caliber Collision and its subsidiaries, Caliber Auto Care, Caliber Glass, and Caliber Fleet, rank as one of the best auto service triple net lease investments in the marketplace. Caliber Collision, a high-credit tenant, meets every one of our criteria for a solid NNN investment, including operating with long-term, corporate-guaranteed NNN leases with built-in rent escalations, doing business in prime locations, and a focus on growth, technology, and customer satisfaction.
The average sale price of a 10,000–15,000 square foot Caliber Collision is around $4M with cap rates in the region of 5.00%, give or take for market fluctuations.
- Caliber Collision centers operate with 10- to 15-year corporate-guaranteed, low- or no-maintenance NNN leases for income stability, predictability, lifestyle freedom, and less risk.
- This NNN tenant is a recession-resistant, pandemic-resistant, and internet-resistant essential retailer with a proven pandemic history, so there’s very little if any, concern about future monthly income and stability.
- Most Caliber Collision leases offer terms that include a 10% rent increase every 5 years. This addresses inflation and provides more stable cash flow, as well as the opportunity for a higher internal rate of return (IRR).
Long-term Predictable Income
- A corporate-guaranteed lease by an investment-grade tenant provides long-term security and predictable income.
- Caliber Collision NNN leases also offer renewal options so you can continue to own your auto service property well past the original lease term for income dependability.
Tangible Asset on Valuable Real Estate
- Caliber Collision service centers typically sit on 0.75 to 2.0-acre parcels with high traffic counts in high population, dense retail areas with high visibility, and easy access, which presents the opportunity for resale ROI and/or easy re-tenanting.
Smart Trade with a 1031 Exchange
- You can utilize the 1031 exchange to trade up to a stable, income-producing, maintenance-free or very low maintenance Caliber Collision from a high-maintenance or under-performing property.
Bonus Depreciation Tax Benefit
- Caliber Collision is one NNN lease investment that qualifies for bonus depreciation. This tax benefit allows taxpayers to deduct additional depreciation for the cost of qualifying new or used business property, beyond normal allowances. A qualifying property can be depreciated 100% all at once between September 27, 2017, and January 01, 2023. Then the federal tax benefit begins to phase out, reducing to 80% in 2023, then by 20% per year until 2026.
To Wrap it Up –– Caliber Collision NNN Tenant of the Quarter Q4 2022
Caliber Collision has earned Westwood’s NNN Tenant of the Quarter designation for Q4, 2022, by providing award-winning service to its customers, employees, and communities, and for its commitment to the company’s net lease investors like you. NNN Caliber assets offer prime properties at moderate price points with long-term, stable, worry-free monthly income that preserves capital and builds wealth.
Ready to Learn More? Contact us for a No-Obligation Conversation
If you’re interested in learning more about Caliber Collision NNN properties for sale, connect with a Westwood Net Lease Advisor. We will get to know you and your goals and locate off-market, pre-market, and developing properties that meet your lifestyle and financial goals. We are also 1031 specialists who can help you obtain your newly purchased NNN property and close the deal within the tight 1031 timeline.
Our team is passionate about fully representing you in every step of the process –– from before the property search to closing and thereafter –– all at no charge to you. Contact us today for a no-obligation conversation, 314-997-5227.