CAP RATE: 6.25%
BUILDING SIZE: 3,752 Sq Ft
YEAR BUILT: 2020
LOT SIZE: +/- 1.15 Acres
- New 20-Year Lease with 17+ Years Remaining – The tenant, Caliber Car Wash, is an experienced car wash operator with 47+ locations in five different states throughout the Southeast as well as multiple future locations currently under development. Caliber Car Wash in 2019 signed a brand new 20-year lease with four, five-year options to extend, demonstrating their long-term commitment to the site. The lease features 1.50% annual rental increases, growing NOI, hedging against inflation, and increasing return on the investment.
- Absolute Net Lease with Potential 80% Bonus Depreciation – The tenant pays for CAM, taxes, insurance and maintains all aspects of the premises, making this truly an ideal, management-free investment for a passive investor. In addition to the passive nature of this asset, the property potentially qualifies for 80% bonus depreciation. In 2017, the Tax Cuts and Jobs Act (TCJA) made a few changes to the bonus depreciation rules, specifically modifying Section 168 of the Internal Revenue Code to double the allowable bonus depreciation. (See page 5 for more details)
- Percheron Capital Acquires Caliber Car Wash to Fuel Growth – In December 2021, Percheron Capital, a leading San Francisco-based private equity firm, acquired a majority stake in the business to help drive new unit development and execute new acquisition opportunities. Founders and Co-CEO’s Mac McCall and Danny York will remain significant equity holders and will continue to lead the company alongside the current management team. Eagle Merchant Partners (“Eagle”), a leading Atlanta-based private equity firm and Caliber’s current financial partner, will retain a minority interest in the company.
- Gainesville MSA and No State Income Tax – Home to the University of Florida, the Gainesville metro, situated in north central Florida, is centrally located between Miami and Atlanta, and it encompasses Alachua and Gilchrist counties. The city of Gainesville is 70 miles southwest of Jacksonville and 115 miles north of Orlando. The strength of Florida’s low tax burden comes from its lack of an income tax, making them one of seven such states in the U.S. The state constitution prohibits such a tax, thus making the state of Florida a major growth market in the U.S.