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INSURANCE AUTO AUCTIONS, INC. 4401 37th Street North Fargo, ND 58102 NET LEASE INVESTMENT OFFERING
INSURANCE AUTO AUCTIONS, INC.4401 37th Street North Fargo, ND 58102
NET LEASE INVESTMENT OFFERING
TABLE OF CONTENTS
TABLE OF CONTENTS
II. Location Overview Photographs Site Plan Map
III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview
I. Executive Profile Executive Summary Investment Highlights Property Overview
NET LEASE INVESTMENT OFFERING
DISCLAIMERSTATEMENT:
DISCLAIMER STATEMENT
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NET LEASE INVESTMENT OFFERING
EXECUTIVESUMMARY:
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a new single tenant Insurance Auto Auctions, Inc. (NYSE: KAR) property located in Fargo, North Dakota. There are over 17 years remaining on the Insurance Auto Auctions lease which expires on November 30, 2035. The lease features rare annual CPI rental escalations that will be no less than 3%. This absolute triple net lease features no landlord responsibilities.
The 19.1 acre Insurance Auto Auctions property is strategically located next to Hector International Airport which is the largest airport in Fargo with over 789,000 passengers in 2016. The property is also positioned just off of Interstate 29, which serves as a primary north-south thoroughfare through Fargo. There are over 210,000 people living within 10 miles of the property and earning an average household income of $74,752. Fargo is the most populous city in the state of North Dakota, accounting for nearly 16% of the state population. In 2014, Forbes magazine ranked Fargo as the fourth fastest-growing small city in the United States.
Insurance Auto Auctions, Inc. is one of the leading North American salvage auto auctions with the largest facility footprint, strong buyer base and high auction returns. The company operates more than 170 locations throughout the United States and Canada and is one of three business divisions of KAR Auction Services. KAR is a publicly traded company with a market capitalization in excess of $7.2 billion. On average, over 29,000 vehicles are checked-in, inventoried, stored and set for sale each week. In 2016, IAAI sold nearly 2 million vehicles to registered buyers around the globe.
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS:
INVESTMENT HIGHLIGHTS
• Long term lease with over 17 years remaining
• Rare annual rental escalations that will be no less than 3%
• Insurance Auto Auctions, Inc. is a business division of KAR Auction Services which is a publicly traded company (NYSE: KAR) with a market capitalization in excess of $7.2 billion
• Brand new facility built in 2012 with expansions and improvements made in 2015
• Absolute triple net lease with no landlord responsibilities
• Insurance Auto Auctions, Inc. is one of the leading North American salvage auto auction companies with over 170 locations
• Strategically positioned next to Hector International Airport and just off of Interstate 29
• Over 210,000 people living within 10 miles of the property and earning an average household income of
$74,752
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW:
PROPERTY OVERVIEW
NET LEASE INVESTMENT OFFERING
Price:
Cap Rate:
Net Operating Income:
Rental Escalations:
Renewal Options:
Lease Expiration Date:
Tenant:
Year Built
Lease Type:
Building Size:
Land Acreage:
$6,109,289
6.75%
$412,377 (As of December 2017)
Annual CPI (no less than 3% and not greater than 5.5% during primary term)
Two 5-Year*
November 30, 2035
Insurance Auto Auctions Inc.
2012
NNN – No Landlord Responsibilities
5,500 SF
19.1 Acres
* Rent for the first year of each renewal option is set at FMV. The remaining years of each option period have annual CPI rental escalations. The escalationsshall be no less than 3%, nor greater than 5%.
NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS
NET LEASE INVESTMENT OFFERING
SITE PLAN
37
TH
ST
RE
ET
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STORAGE YARD
SECURITY GATE
MAP
NET LEASE INVESTMENT OFFERING
MAP
MAPMAP
NET LEASE INVESTMENT OFFERING
DEMOGRAPHICREPORT:
DEMOGRAPHIC REPORT
Population 3-Mile 5-Mile 10-Mile
Total Population 5,653 49,963 210,030
Total Households 2,463 20,868 88,402
Income 3-Mile 5-Mile 10-Mile
Median Household Income $53,588 $47,180 $53,483
Average Household Income $79,781 $68,184 $74,752
NET LEASE INVESTMENT OFFERING
MARKET OVERVIEW
MARKETOVERVIEW:
Fargo, North DakotaFargo is the most populous city in the state of North Dakota, accounting for nearly 16% of the state population. Fargo is also the county seat of Cass County. Fargo, along with its twin city of Moorhead, Minnesota, as well as the adjacent cities of West Fargo, North Dakota and Dilworth, Minnesota, form the core of the Fargo-Moorhead, ND-MN Metropolitan Statistical Area, which in 2016 contained a population of 238,124. In 2014, Forbes magazine ranked Fargo as the fourth fastest-growing small city in the United States.
Founded in 1871 on the Red River of the North floodplain, Fargo is a cultural, retail, health care, educational, and industrial center for eastern North Dakota and northwestern Minnesota. The city is also home to North Dakota State University which has 14,516 students. NDSU has grown rapidly into a major research university, and forms a major component of the city’s identity and economy. Most students live off-campus in the surrounding Roosevelt neighborhood. The university has established a presence downtown through both academic buildings and apartment housing. In addition, NDSU Bison Football has become a major sport following among many area residents.
Since the late 1990s, the Fargo-Moorhead Metropolitan Statistical Area has consistently had one of the lowest unemployment rates among MSAs in the United States. Coupled with Fargo’s low crime rate and the decent supply of affordable housing in the community, this has prompted Money magazine to rank the city near the top of its annual list of America’s most livable cities throughout the late 1990s and early 2000s. The economy of the Fargo area has historically been dependent on agriculture. That dominance has decreased substantially in recent decades. Now, the city of Fargo has a growing economy based on food processing, manufacturing, technology, retail trade, higher education, and healthcare. In a study published by Forbes, Fargo was ranked the best small city in the nation to start a business or a career.
NET LEASE INVESTMENT OFFERING
TENANT OVERVIEW
TENANT OVERVIEW:
NET LEASE INVESTMENT OFFERING
Insurance Auto Auctions, Inc. (IAAI)Insurance Auto Auctions, Inc. (IAAI) is one of the leading North American salvage auto auctions with the largest facility footprint, strong buyer base and high auction returns. With an exclusive focus on the automotive total-loss industry and over 170 facilities across the United States and Canada, IAAI provides sellers and buyers with the best solution to process and acquire total-loss, recovered-theft, fleet lease, dealer trade-in and collision damaged rental vehicles. On average, over 29,000 vehicles are checked-in, inventoried, stored and set for sale each week. In 2016, IAA sold nearly 2 million vehicles to registered buyers around the globe.
The hybrid auction model, including live, internet and proxy bidding – combined with a mature buyer base and diverse inventory – produce exception returns on each sale. There are over 3.5 million vehicles deemed total-losses each year in the United States. Since 1982, this number has grown significantly, mostly due to vehicle manufacturing changes and improvements including air bags.
The company was founded in 1982 and since then has been one of the leaders in the salvage auto auction industry and worked to ensure the best value to buyers and returns to sellers.
IAAI is one of three business divisions of KAR Auction Services Inc. KAR is a publicly traded company with a market capitalization in excess of $7.2 billion. KAR’s two other business divisions include ADESA and Automotive Finance Corporation. ADESA is a wholesale, used-vehicle auction operation with 76 locations and a complete online service offering for auto dealers, manufacturers, banks, finance, fleet, lease and rental companies. Automotive Finance Corporation is a capital funding source with 118 offices that provides inventory financing and comprehensive business services primarily to independent used-vehicle dealers.
Website: www.iaai.comLocations: 170+Year Founded: 1982Headquarters: Westchester, IL
Randy [email protected]
Jimmy [email protected]
3520 Lake Avenue, Suite 203Wilmette, IL 60091
www.bouldergroup.com
