Property Listing No Longer Available for Sale

3301 Spring Hill Road, Mobile, AL

Retail for Sale - $580,000 - 1,788 Sq. Ft. on 0.26 acres


Property Info

CIMLS#63636
Location
  3301 Spring Hill Road
  Mobile AL 36608
UpdatedJanuary 27th, 2009
TypeRetail
Price$580,000
Building1,788 Sq. Ft.
Land0.26 acres

Property Description

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.

The subject property is located off Interstate 65 on Spring Hill Road. Retailers in the immediate area include: Dollar General, Autozone, O'REILLY Auto Parts, Rite Aid, Burger King, McDonald's, Waffle House, Zaxby's, Hardee's, KFC, Subway, Taco Bell, Wendy's and Chick-Fil-A.

Mobile is the third most populous city in the state of Alabama and is the county seat of Mobile County. Mobile is the principal municipality of the Mobile Metropolitan Statistical Area, a region of 399,843 residents which is composed solely of Mobile County and is the second largest MSA in the state. Mobile is included in the Mobile-Daphne-Fairhope Combined Statistical Area with a total population of 540,258, the second largest CSA in the state.

Located at the junction of the Mobile River and Mobile Bay on the northern Gulf of Mexico, the city is the only seaport in Alabama. The Port of Mobile has always played a key role in the economic health of the city beginning with the city as a key trading center. Currently it's the 10th largest port in the United States.

As one of the Gulf Coast's cultural centers, Mobile houses several art museums, a symphony orchestra, a professional opera, a professional ballet company, and a large concentration of historic architecture. Mobile is known for having the oldest organized Carnival/Mardi Gras celebrations in the United States, as well as the oldest Carnival mystic society.


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



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