1. home and garden

LKQ Corporation Distribution Building
EXECUTIVE SUMMARY
Burleson, Texas (Dallas / Fort Worth Metroplex)
Under construction, to be
completed in May 2014
Call for offers:
Wednesday, April 23rd
In association with:
Douglas Longyear
415-677-0458
Doug.Longyear@cassidyturley.com
Lic #00829911
Andrew Bogardus
415-677-0421
Andy.Bogardus@cassidyturley.com
Lic #00913825
Christopher Sheldon
415-677-0441
Chris.Sheldon@cassidyturley.com
Lic #01806345
Blake Anderson
972-692-1739
Blake.Anderson@cassidyturley.com
TX Lic #469316
Offering & Investment Highlights
The Offering
•
Metro Area Economy
nder construction, a new 94,000 +/- sq. ft. distribution building situated
U
on a 72 +/- acre site leased to LKQ Best Automotive Corp for 15 years and
guaranteed by the parent, LKQ Corporaton (NASDAQ: LKQ). Completion is
scheduled for late May 2014.
•
No state corporate or personal income taxes
•
Diversified economy with energy, communications, food processing,
aerospace, logistics and more
•
Price – $12,300,000
•
•
Rent & Rent Increases - To be proposed by Purchaser and subject to
acceptance by Seller
entral U.S. location and low cost of doing business attracts corporate
C
relocations
Lease / Tenant
Metro Area’s Fortune 500 HQ’s
•
ExxonMobil – Oil & Gas
•
AT&T – Telecommuncations
•
Flour – Construction
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American Airlines – Airline
•
Kimberley Clark – Consumer Products
•
New 15-year triple net lease with LKQ Best Automotive Corp.
•
The lessee’s obligations guaranteed by LKQ Corporation
•
LKQ Corporation is the industry leading company for distributing after market
and recycled auto parts
•
LKQ is an environmental benefactor
•
HollyFrontier – Oil & Gas
•
LKQ Corporation bonds have an S&P BB+ bond rating
•
Energy Transfer Equity – Energy
•
LKQ Corporation’s revenues and profits have increased every year since 2000
•
Southwest Airlines – Airlines
•
J.C. Penney – Retail
•
Dean Foods – Food Processing
•
Texas Instrument – Semiconductors
•
Tenet Healthcare – Healthcare
•
GameStop – Retail
•
Commercial Metals – Steel & Metal
Strategic Interstate 35 Location
•
I-35W links to the highway network serving the DFW Metroplex
•
I-35W connects Dallas/Fort Worth with Austin, San Antonio and Laredo
•
Houston may be accessed via I-35W, H-84 and I-45.
Metro Area Strengths
•
he Dallas Fort Worth Arlington metro area has the largest population in the
T
Southwest, and the 4th largest in the U.S.
•
Celanese – High Tech Materials
•
Dr. Pepper Snapple – Beverage
•
Since 2000, the population has grown from 5,000,000 to 6,750,000
•
Energy Future Holdings – Utility
•
Low unemployment rate – 5.4%
•
Highly ranked nationally by Moody’s and Kiplinger for future job growth
LKQ
SKF
Corporation
USA, Inc.
2
1
Investment Overview
Location
2955 South I-35W, Burleson, Texas (situated on the frontage road for Interstate 35W)
Lot Size
Approximately 72 +/- acres — 3,136,320 +/- square feet
Site Uses
Parcel 1 (68 +/- acres) will contain the subject building and LKQ’s outdoor storage area. The 94,000 +/- sq. ft. building will be used primarily
for the storage and distribution of aftermarket and recycled auto parts. Approximately 18,527 sq. ft. of the building will be used for dismantling
cars to recycle selected parts. The outdoor area with be used to store automobiles for additional parts removal and recycling. Cars in the outdoor
storage areas are sold to scrap metal companies after three to eight months in the yard. Parcel 2 (4 +/- acres) is used by County Road 711 L.P.
for extracting natural gas.
Building Improvements
Under construction, a new 94,000 +/- sq. ft. distribution building which is scheduled to be completed in late May 2014. The building will
have metal sides, a metal roof, 11 dock high truck doors with levelers, 17 drive in truck doors and 6,781+/- sq. ft. of ground floor office and
6,781 +/- sq. ft. of mezzanine office space. The mezzanine space is not included in the building’s total sq. ft. The clear height in the warehouse
area will be 30’. The office space will be air conditioned. The warehouse area will have heating, fans and side wall louvers for air circulation. The
building will have an ESFR sprinkler system. Parking spaces will be available for 12 delivery vans and approximately 104 cars.
Site Improvements
The 68 +/- acre Parcel 1 site will contain the following uses: 94,000 +/- sq. ft. for the building foot print; 3.9 +/- acres of concrete paving for
truck circulation and vehicle parking; 5.5 +/- acres for landscape and green belt areas; 46 +/- acres of 8” thick crushed concrete for outdoor
inventory storage; and 5.8 +/- acres for storm water detention ponds. The site will be surrounded by an 8’ high, hardy plank wall.
Price
$12,300,000. Seller shall have the option to increase the price by up to $200,000 or decrease it by as much as $200,000 prior to closing with
reasonable notice to Purchaser.
Lease
Lessee
Lease Term
Renewal Options
Lessee Obligations
Lease Guarantor
LKQ Best Automotive Corp.
15 years commencing at the closing
Four 5-year renewal options
Triple Net – real estate taxes, insurance, and maintenance including roof and structure
LKQ Corporation (NASDAQ: LKQ) (S&P BB+ bond rating)
Annual Base Rent
To be proposed by Purchaser and subject to acceptance by Seller
Rent Increases
To be proposed by Purchaser and subject to acceptance by Seller
LKQ Corporation
2
121
287
35W
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Location / Regional Map
The property is located at 2955 South I-35W, Burleson,
Texas. South Burleson Road is a frontage road on the east
side of Interstate 35W.
FLOWER
MOUND
The property’s location along I-35W offers LKQ significant
strategic value. The Burleson facility will distribute 114
parts to auto repair businesses located throughout the
Metroplex. I-35W facilitates this distribution by linking
to the highway network serving the entire Metroplex.
GRAPEVINE
The Burleson facility exchanges parts with the Houston
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facility every night. Houston may be accessed via I-35W,
H-84 and I-45. The Burleson facility will receive parts
121
that are manufactured in Mexico. I-35W passes through
Dallas/Fort Worth
Austin and San Antonio on its way to Laredo which is the
35W
border transit point for approximately
60% of the import/ International Airport
export trade volume between Mexico and the U.S.
BEDFORD
287
PLANO
77
CARROLLTON
RICHARDSON
FARMERS
BRANCH
NORTH DALLAS
IRVING 114
77
UNIVERSITY
PARK
GARLAND
635
30
67
DALLAS
FORT WORTH
820
MESQUITE
30
30
35W
ARLINGTON
820
GRAND
PRAIRIE
45
360
20
20
35E
20
BURLESON
67
174
HIGHPOINT
BUSINESS PARK
CLEBURNE
LKQ
MANSFIELD
35E
67
WAXAHACHIE
45
LKQ Corporation
67
ENNIS
3
Site Plan
Parcel 1 – 68 +/- acres
Parcel 1 will contain the LKQ building and LKQ’s outside
storage yard.
Parcel 2 – 4 +/- acres
Parcel 2 is used by County Road 711 L.P. to extract
natural gas.
PARCEL 2
WALLS
GAS PAD
LOADING
DOCK
FIRE LANE
INTERSTATE 35 W
DETENTION
POND
FIC
E
LOADING DOCK
STORAGE
OF
OUTSIDE STORAGE AREA
FIRE LANE
TREE PRESERVATION
AREA
PARCEL 1
LKQ Corporation
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LKQ Corporation
Billions
Revenue (in Billions)
$6
5.063
$5
4.123
•
LKQ has the largest market share of any company operating in its sector.
•
LKQ’s Revenues and Profits increased each year during the last recession.
•
KQ’s Revenues and Income from Continuing operations have increased at compounded annual rates of
L
21.5% and 26.0%, respectively since 2008.
•
LKQ’s long term debt has an S&P bond rating of BB+.
$4
3.270
LKQ Corporation was founded in 1998 and is headquartered in Chicago, Illinois. LKQ distributes a variety of products
to collision and mechanical repair shops, including aftermarket collision and mechanical products, recycled collision
and mechanical products, refurbished collision replacement products such as wheels, bumper covers and lights, and
remanufactured engines. Collectively, LKQ refers to its products as alternative parts. LKQ reports to be the nation’s
largest provider of alternative vehicle collision replacement products and a leading provider of alternative vehicle
mechanical replacement products, with its sales, processing, and distribution facilities reaching most major markets
in the United States. LKQ’s wholesale operations also reach most major markets in Canada. LKQ has a total of 404
facilities in the U.S. and Canada. LKQ reports to be a leading provider of alternative vehicle mechanical replacement
products in the United Kingdom, the Netherlands, Belgium and France.
$3
2.470
1.908 2.047
$2
1.127
$1
0.789
$0
2006
2007
Millions
$350
2008
2009
2010
2011
2012
2013
Income from Operations
(in Millions)
312
$300
261
$250
Insurance Companies Drive Business to LKQ
Insurance companies, which ultimately pay for the majority of collision repairs of insured vehicles, help drive demand
for LKQ’s products. Insurance companies tend to exert significant influence in the vehicle repair decision. Because of
their importance to the process, LKQ has formed relationships with certain insurance companies in North America for
which LKQ is designated a preferred products supplier. LKQ provides customers with a value proposition that includes
high quality products at lower cost than new OEM products, extensive product availability due to its broad distribution
network, responsive service and quick delivery. The breadth of LKQ’s alternative parts offerings allows it to serve as a
“one-stop” solution for customers looking for the most cost effective way to provide quality repairs.
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Financial Information
$200
LKQ’s Total Revenue for FY 2013 was $5.06 billion, 22.7% higher than in 2012. Its Net Income for FY 2013 was
$311 million, 19.2% higher than in 2012. LKQ’s Total Assets and Shareholders’ Equity at the end of 2013 was
$4.51 billion and $2.35 billion, respectively.
167
$150
127
97
$100
63
$50
44
$0
2006
2007
2008
2009
2010
2011
2012
2013
LKQ Corporation
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Burleson
Burleson is a suburb of the Dallas Fort Worth metro area (commonly referred to as the
Metroplex) located south of Fort Worth on Interstate 35W. The city straddles both Johnson
and Tarrant counties. The city’s population grew approximately 75% between 2000 and
2013. The current population is estimated to be 36,690. While this figure may not be
large, it masks the fact that Burleson is part of the larger Metroplex which has a population
of 6.7 million people. Burleson is transitioning from a bedroom community to a mix of
residential and commercial/industrial development. The catalysts for the new commercial
and industrial development are the LKQ project and the HighPoint Business Park.
HighPoint Business Park
HighPoint Business Park is a 159 acre master planned business park located directly across
I-35W from the LKQ site. HighPoint is being developed by the city of Burleson. All utilities
are now available to the site. The city is offering 5 to 45 acres sites and state and local
economic incentives to attract companies. One year ago there was no evident activity. Now,
two main roads are in, utilities have been brought to the park, some sites are being graded
and the park has won a 90,000 sq. ft. climate controlled building requirement for Chicken
E Food Service. This company will use the facility to house its corporate headquarters and
store refrigerated food for distribution.
Two other recent developments include a new 136,000 sq. ft. Sam’s Club located near the
intersection of I-35 and Highway 174 and a 5,000 sq. ft. building for Axogen, a medical
devices company.
In addition to its new commercial and industrial development, Burleson is a well-regarded
residential community. Burleson was recognized in September 2010 as one of the “100
Best Communities for Young People” by the America’s Promise Alliance, the nation’s largest
partnership organization dedicated to youth and children. The city has exceptional school
districts which consistently bring in student SAT and ACT scores that are higher than the
state and national averages.
A review of the Dallas/Fort Worth Metroplex is useful to grasping the value of the surrounding
area to the subject property and its use.
Dallas, Texas Skyline
LKQ
FedEx
Corporation
Ground
8
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Demographics
Census 2010 Summary
10 miles
20 miles
30 miles
Population
151,850
1,055,178
2,456,231
Households
52,152
373,103
873,594
Families
41,026
265,145
616,990
2.89
2.78
2.78
Owner Occupied Housing Units
40,910
245,599
546,659
Renter Occupied Housing Units
11,242
127,504
326,936
35.0
33.5
33.2
Average Household Size
Median Age
2012 Summary
Population
157,959
1,079,797
2,512,216
Households
54,206
383,084
896,105
Families
42,172
268,360
623,731
2.89
2.78
2.77
Owner Occupied Housing Units
41,938
248,035
551,409
Renter Occupied Housing Units
12,269
135,049
344,696
35.1
33.6
33.4
Median Household Income
$54,046
$52,731
$51,223
Average Household Income
$68,037
$69,484
$67,045
Average Household Size
Median Age
2017 Summary
Population
170,714
1,153,856
2,682,735
Households
58,309
406,969
951,744
Families
45,700
287,879
669,197
Average Household Size
2.91
2.79
2.79
Owner Occupied Housing Units
45,590
267,775
595,668
Renter Occupied Housing Units
12,719
139,194
356,076
35.4
34.1
33.8
Median Household Income
$61,010
$59,701
$57,924
Average Household Income
$75,291
$77,568
$74,761
Population
1.57%
1.34%
1.32%
Households
1.47%
1.22%
1.21%
Families
1.62%
1.41%
1.42%
Owner Households
1.68%
1.54%
1.56%
Median Household Income
2.45%
2.51%
2.49%
Median Age
Trends: 2012-2017 Annual Rate
Fort Worth, Texas
LKQ
FedEx
Corporation
Ground
15
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Disclaimer
The information contained in this marketing brochure (“Materials”) is proprietary
and confidential. It is intended to be reviewed only by the person or entity receiving
the Materials from Cassidy Turley Northern California (“Agent”). The Materials are
intended to be used for the sole purpose of preliminary evaluation of the subject
property/properties (“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial, property,
and market information to a prospective purchaser to enable it to establish a preliminary
level of interest in potential purchase of the Property. The Materials are not to be
considered fact. The information contained in the Materials is not a substitute for
thorough investigation of the financial, physical, and market conditions relating to the
Property.
The information contained in the Materials has been obtained by Agent from sources
believed to be reliable; however, no representation or warranty is made regarding the
accuracy or completeness of the Materials. Agent makes no representation or warranty
regarding the Property, including but not limited to income, expenses, or financial
performance (past, present, or future); size, square footage, condition, or quality
of the land and improvements; presence or absence of contaminating substances
(PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and
federal); or, financial condition or business prospects of any tenant (tenants’ intentions
regarding continued occupancy, payment of rent, etc). A prospective purchaser must
independently investigate and verify all of the information set forth in the Materials. A
prospective purchaser is solely responsible for any and all costs and expenses incurred
in reviewing the Materials and/or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set
forth herein.
LKQ Corporation
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