Property Listing No Longer Available for Sale

1515 East Glenn Avenue, Auburn, AL

Retail for Sale - $1,180,000 - 2,449 Sq. Ft. on 0.89 acres


Property Info

CIMLS#63557
Location
  1515 East Glenn Avenue
  Auburn AL 36830
UpdatedJanuary 27th, 2009
TypeRetail
Price$1,180,000
Building2,449 Sq. Ft.
Land0.89 acres

Property Description

The city of Auburn is located approximately 40 miles from Columbus, GA and 60 miles from Montgomery, AL. Auburn is located in the southeastern part of Alabama and is accessible by Interstate 85, US 29, and US 280. Auburn is a college town and is home to Auburn University. Auburn is a thriving city of approximately 50,000 permanent residents and 20,000 student residents for a combined population of near 70,000. Auburn is located along Interstate 85 in east central Alabama. It is the principal city of the Auburn Metropolitan Area, a MSA with a population of 123,254 which, along with the Columbus, Georgia-Alabama MSA and the Tuskegee, Alabama Micropolitan Statistical Area, comprises the greater Columbus-Auburn-Opelika, Georgia-Alabama Combined Statistical Area with an estimated population of 276,000.

This site is located in the east side of Auburn, AL off Glenn Avenue near the airport. Retailers in the immediate area include: Kroger, CVS Pharmacy, Walgreens, NAPA Auto Parts, AutoZone, Winn-Dixie, Sonic Drive-In, Mc Alister's Deli, Chili's Grill & Bar and IHOP Restaurant.

American LubeFast started in 1997 in Atlanta. By summer of 1999 there were 7 stores in Atlanta. In August 1999, with the help of Castrol and FFCA, the company purchased 52 stores of the Super Lube chain. The acquisition expanded the Company in South Georgia, South Alabama and Northwest Florida markets. Currently, there are 78 stores and the Company has recently expanded into southern Mississippi.

In most of the markets that American LubeFast operates in, they are the largest automotive service company. This allows American LubeFast the ability to achieve economies of scale in advertising costs. Whereas American LubeFast will spend as much on advertising as their competitors, the greater number of stores in the markets equates to a lower cost of advertising per store than competitors in the same market.

The large number of stores in the markets that American LubeFast operates in allows the Company to be very aggressive with any local competitor. The Company has a significant cost advantage over smaller operators and subsequently can lower its prices at one store, making it very difficult for competitors to price match, and resulting in a negligible impact on the Company’s profit.

The Company’s diversified operating markets provide the ability to test different ideas without having to roll it out everywhere. A new product, service or price can be experimented with, for example, in a town in South Georgia. This allows the change to be tested and then implemented across additional markets if it is successful, without disrupting everyday operations of all operating stores.

American LubeFast has developed a good system for selling additional services. These services have much higher profit margins than a standard oil change. The Company has created a culture of service orientation. This has helped build a team that constantly focuses on trying to help customers and ways to help American LubeFast as a whole.


Financials

Cap Rate: 10%

Lease Type: Net, Net, Net Lease. No Landlord responsibilities. Tenant has option to purchase, please see lease.

Lease Term: Twenty (20) years

Lease Commencement: September, 2007

Lease Renewal Options: Two (2) Ten (10) year options