Corporate Guaranty from Crash Champions (600+ Locations)
– Crash Champions was founded in 1999 in Chicago, IL. Part of “The Big 5”, Crash Champions is the third largest collision repair provider with 600+ locations across the united states.
– Today they are the nation’s largest founder-led automotive repair brand in the country. Backed by private equity firm Clearlake Capital, in 2022 Crash Champions merged with Service King and integrated 336 of their locations.
Recent Acquisition of Adam Collision (4 Locations)
– All 4 Adams Collision locations were acquired by Crash Champions in December of 2023.
– Adams Collision proudly served McHenry county (Northwest and Far Northwest parts of Chicago MSA) for more than 6 decades.
– Each of the 4 repair centers is I-CAR Gold Class certified.
– https://crashchampions.com/company/press/crash-champions-expands-chicago-presence-acquires-mso-adams-collision
New 10-Year Leases with 10% Increases Every 5 Years
– Over 9 years remaining on initial lease term with three, five-year options to extend, demonstrating long-term commitment to the site.
– The lease features 10% rental increases every five years in the initial term and continuing into the option periods, growing NOI and hedging against inflation.
– Limited landlord responsibilities, with landlord only responsible for roof and structure.
Recession and Internet Resistant Industry
– The U.S automotive collision repair industry was valued at $33.79 billion dollars in 2023 and has a projected compound annual growth rate of 2.80% through 2031.
– Most U.S households (91.7%) had at least 1 vehicle in 2022 (latest available data) and 22.1% of households had three or more vehicles.
– The price of new vehicles in January 2024 is 19.6% higher than in January 2021. The price of used vehicles has gone through more volatile movements but, in January 2024, are 20.1% higher than in January 2021.
– The growth in vehicle ownership, cost of vehicle ownership, and the growth of the collision repair industry itself suggests a strong and safe investment during any economic environment.
