Property Listing No Longer Available for Sale

2526 Fisk Road, Montgomery, AL

Retail for Sale - $710,000 - 1,912 Sq. Ft. on 0.4 acres


Property Info

CIMLS#63635
Location
  2526 Fisk Road
  Montgomery AL 36111
UpdatedJanuary 27th, 2009
TypeRetail
Price$710,000
Building1,912 Sq. Ft.
Land0.4 acres

Property Description

Montgomery is the capital and second most populous city of the U.S. state of Alabama and the county seat of Montgomery County. Montgomery is served by Interstate 65 and Interstate 85. I-65 is the primary north-south freeway through the city leading between Nashville, TN and Mobile, including Birmingham and Huntsville, while I-85, another north-south (running east-west in the city) freeway, leads northeast to Atlanta, and serves as the southern terminus of the route.

Retailers in the immediate area include: Kmart, Winn-Dixie, True Value, Dollar General, Burke's Outlet, Rite Aid, Walgreens, Autozone, Super Foods Stores, Subway, Captain D's Seafood, McDonald's, Wendy's, Taco Bell and KFC.

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, lease see lease.

Lease Term: Twenty (20) years

Lease Commencement: September, 2007

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



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