Christian Brothers Automotive Tenant Overview
Pros
- Corporate backed leases
- Frequent rent increases
- Absolute NNN leases
Cons
- Difficult to repurpose building
- Private company
- Possible environmental risks
Tenant Description
Christian Brothers Automotive is a growing auto service provider.
Christian Brothers’ leases are very attractive to investors, typically 15 years and require zero landlord responsibilities. The leases will commonly feature 1.5% annual rent increases. New Christian Brothers’ locations are selected and constructed by the company before being sub-leased to their franchisees. The company will target locations with growth potential in high income areas. Every Christian Brothers is locally owned and operated.
Auto repair buildings pose a challenge to retenant with anything other than another auto repair shop. Some investors may also have concerns with the potential environmental liability which can arise from the auto repair businesses.
Christian Brothers started in Mission Bend, Texas in 1982. From its inception, Christian Brothers wanted to focus on customer service and high-quality auto repair services. After helping a friend open another repair shop, the founder Mark Carr saw that his practices and principles could help repair shops thrive in different communities and under different management. This inspired Carr to begin franchising Christian Brothers Automotive in 1996. Today, Christian Brothers has grown to over 200 locations nationwide.
| Average Sale Price | $3,835,300 |
| NOI | $211,500 |
| $/Square Foot | $640 - $770 |
| Building SF | 5,000 - 6,000 |
| Lot Size | 0.50 - 1.25 acres |
| Lease Term | 15 Years |
| Escalations | 1.5% Annually starting in lease year 6 |
| Stock Symbol | N/A |
| Mesa, AZ | 5.00% |
| Colorado Springs, CA | 5.13% |
| Zionsville, IN | 5.75% |
