CM Lithia Springs DST
The CarMax property located at 1977 T hornton Road, Lithia Springs, GA 30122
Price: $11,669,000
Capitalization Rate: 6.27%
- Initial Distribution Rate: 6.00%
- Annual Rent: $731,430
- Gross Leasable Area: 19,242 sq. ft.
- Year Built: 2002
The property consists of three buildings on 18.52 acres with space for 551 vehicles. Located in Lithia Springs, GA, this CarMax dealership is near Interstate 20 in a high traffic retail corridor on Thornton Road. More than 10 auto dealerships are located within a one-mile radius and more than 100,000 vehicles travel this section of Interstate 20 daily.
The CarMax property located at 1977 T hornton Road, Lithia Springs
Lithia Springs is located in Douglas and Cobb Counties in northeastern Georgia. It is a suburb of the Atlanta Metropolitan Statistical Area, located approximately 17 miles west of downtown Atlanta.
Investment Overview
- Tenant: CarMax Auto Superstores, Inc.
- Price: $11,669,000
- Capitalization Rate: 6.27%
- Initial Distribution Rate: 6.00%
- Annual Rent: $731,430
- Gross Leasable Area: 19,242 sq. ft.
- Lease Type: Absolute NNN
- Year Built: 2002
- Lot Size: 806,644 sq. ft. (18.52 Acres)
- Lease Term: 7/28/2003 – 7/31/2033
- Renewal Options: Four 5-year options
- Rental Increases: 5% on 8/1/2028
- Legal Structure: Delaware Statutory Trust (DST)
- Minimum Investment:
• $100,000 for a 1031 exchange
• $50,000 for a cash investment
Offering Highlights
Tenant:
- CarMax, the largest retailer of pre-owned vehicles in the United States with annual revenues of over $10.9 Billion*
- Fortune 500 company and one of the FORTUNE 2013 “100 Best Companies to Work For”
- Superstores in 30 states and 58 markets across the US
- Revenue growth of 11.98% during the last four years with 30% location growth planned in the next three years
Location:
- Located in the Atlanta suburb of Lithia Springs, GA, a metropolitan area with a population of more than 5.3 million
- CarMax is committed to this location – recent lease extension of 15 years
- Site is close to Interstate 20, traffic count approximately 100,000 daily
- Vehicle shopping destination: 10+ auto dealerships within a one-mile radius
Lease Terms:
- 19+ years
- Absolute NNN lease – tenant is responsible for ALL property taxes, insurance, and maintenance costs
- 5% rent increase on 8/1/2028
- 6.00% Initial distribution
Tenant Profile
CarMax, a member of the FORTUNE 500 and one of the FORTUNE 2013 “100 Best Companies to Work For,” is the nation’s largest retailer of pre-owned vehicles. Founded in 1993 and headquartered in Richmond, VA, CarMax operates 118 pre-owned vehicle superstores in 58 markets. The unique CarMax business model allows customers to shop for vehicles the same way they shop for items at other “big-box” retailers by providing low, no-haggle prices, a broad selection of certified pre-owned vehicles, and superior customer service. Additionally, CarMax operates a vehicle financing company and is one of the nation’s largest sellers of wholesale vehicles. During fiscal year 2013, CarMax retailed 447,728 pre-owned vehicles and sold 324,779 vehicles wholesale.
In fiscal year 2013, the company had $10.96 Billion in gross revenue, $1.4 Billion in gross profit, and more than $3 Billion in shareholder’s equity. Gross revenue has grown by 11.98% during the last four years and the company intends to open 13 superstores in 2014 and between 10 and 15 superstores in each of the following two fiscal years.
ABOUT AEI
Founded in 1970, AEI is one of America’s oldest sponsors of net lease real estate investment programs and a leader in the TIC- 1031 exchange industry. AEI is a national source of high quality, commercial real estate for property owners engaged in 1031 tax-deferred property exchanges. AEI has specialized in developing, evaluating and purchasing these types of properties for more than 35 years and offers a portfolio of name-brand, net leased commercial retail properties.
Why come to AEI for your TIC or 1031 properties?
Exceptional service. If this is your first 1031 property exchange or TIC purchase, we make every effort to ensure that you fully understand the transaction. Our experienced professionals are available to assist you at each step.
Stability and quality. AEI offers quality, single tenant properties – freestanding real estate occupied by creditworthy corporate tenants under long-term net leases.
Acquisition expertise. AEI has performed institutional-grade due diligence on every property we own. Acquiring property from AEI can reduce this time-consuming, labor-intensive aspect of your property selection process and provide a higher level of expertise than you may be able to provide yourself.
Post-purchase services. After your property purchase is complete, AEI can provide the following services:
- Accounting and distribution of rental income
- Year-end 1099 forms for tax reporting
- Assisting with any management concerns you may have about your property
- Monitoring lease compliance, tax and insurance payments, and property maintenance by the tenant