NNN CALIBER COLLISION

SVN | DENVER COMMERCIAL | 414 14TH STREET, SUITE 100, DENVER, CO 80202 OFFERING MEMORANDUM

NNN CALIBERCOLLISION5486 N. GARFIELD AVE.LOVELAND, CO 80538

Kevin MatthewsManaging [email protected]

Troy MeyerManaging [email protected]

NNN CALIBER COLLISION | 5486 N. GARFIELD AVE. LOVELAND, CO 80538 SVN | Denver Commercial | The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Disclaimer

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be usedfor any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent ofthe SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person isauthorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receivingthese materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the informationcontained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. ThisOffering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct,and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representationsor warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or madeavailable to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fullyexecuted and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor anyof their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this OfferingBrochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, toreject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with anyentity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OfferingBrochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on termsacceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing andagreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any suchcorrespondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospectivepurchaser proceeds at its own risk.

INTRODUCTION – This investment offering consists of a brand new, single tenant NNN, state-of-the-art Collision Center. The property is 100% leased to Caliber Collision on a 15-year initial term with two 5-year options, and is backed by a Corporate Guarantee. This is a fantastic opportunity to acquire a prime absolute net-leased asset with increasing investment returns, zoning barriers to new construction of collision facilities, and a fantastic location in one of Colorado’s hottest markets. It serves its demographics well and should offer its new owner a very secure investment along with long-term capital preservation and growth for years to come. TERM* ANNUAL RENT CAP Rate 11/05/2018 – 11/30/2023 $358,895 5.70% 12/01/2023 – 11/30/2028 $394,785 6.27% 12/01/2028 – 11/30/2033 $434,263 6.89% 12/01/2033 – 11/30/2038 (Option 1) $477,689 7.58% 12/01/2038 – 11/30/2043 (Option 2) $525,458 8.34% TENANT – Founded in 1997, Caliber Collision is the largest collision repair company in America with over 600 I-CAR Gold Class Professional certified collision repair centers across nineteen states along with the District of Columbia. The Company is under contract to merge with ABRA Auto Body, which will grow the brand to over 1,000 locations in 37 states. This will give Caliber Collision an unparalleled 10% market share in the collision industry. Because of their national strength and reputation, Caliber Collision already benefits from a distribution system that includes all major auto insurance companies and will grow further with a national presence that will soon include almost the entire continental US. Caliber currently has over 10,000 employees and is consistently ranked among the highest customer satisfaction scores in the industry and backs all repair work with a written, lifetime warranty available at any of its repair centers. AREA DESCRIPTION – The Subject Property is well located off Highway 287, adjacent to a brand new Tractor Supply Co. The Loveland/Fort Collins MSA, located about 45 minutes north of Denver, is a thriving metropolitan area with a population exceeding 325,000. The northern Front Range region is home to several key industries due to the exceptional workforce, quality of life and vibrant business climate the region has to offer. The area was once strictly an oil and gas hub, but has recently expanded to include a diverse array of employment in multiple industries. Larimer County features an extremely educated workforce with over 45% of residents possessing a four year degree. Some of the top employers in Larimer County include University of Colorado Health, Hewlett Packard, Banner Health, Avago Technologies, Woodward, Otterbox, New Belgium Brewing, and Anheuser-Busch. Offers may be in the form of a Letter of Intent or Purchase Contract and should be submitted to one of the advisors indicated below. Kevin Matthews Troy Meyer 303-974-5893 303-974-5737 [email protected] [email protected]


Offer Instructions & Considerations

1 PROPERTYINFORMATION

5486 N. Garfield Ave.Loveland, CO 80538

NNN CALIBER COLLISION | 5486 N. GARFIELD AVE. LOVELAND, CO 80538 SVN | Denver Commercial |

OFFERING SUMMARY

Sale Price: $6,300,000

Cap Rate (Initial): 5.7%

Cap Rate (Initial Term Avg.): 6.29%

Initial NOI: $358,895

Rent Increases: 10% ever 5 Years

Lease Term: 15 Years

Lease Structure: Absolute NNN

Corporate Guaranty: CH Hold Corp.

Year Built 2018

Lot Size: 90,122 SF

Building Size: 16,900 SF

Market: Fort Collins MSA

Submarket: Loveland

Traffic Counts: Over 41,000 VPD

The team of Kevin Matthews and Troy Meyer with SVN Denver Commercial are proud to present to qualified investors theopportunity to purchase a brand new single tenant Caliber Collision flagship location on a long term NNN lease. Theproperty has an initial 15 year primary lease term with 2 - 5 year options. The offering includes an attractive immediatereturn with 10% rent increases every 5 years. The asset features a corporately guaranteed lease with Caliber Collision,which will operate over 1,000 locations in 37 states once the merger with ABRA closes. Caliber has relationships with allmajor automobile insurance companies, which has helped it become the largest collision operator in America.

PROPERTY OVERVIEW

Located along Highway 287, which is the busiest thoroughfare in Loveland with over 41,000 vehicles traveling by theproperty each day. The subject property rest directly adjacent to a newly constructed Tractor Supply and is surrounded bya number of national credit tenants. Loveland is a suburb of Fort Collins, which is connected via Hwy 287.

LOCATION OVERVIEW

PROPERTY HIGHLIGHTS

• Largest Collision Repair Operator in America with 600+ Locations (Will be 1,000+ Locations Once Abra Merger Closes)

• Flagship Location for Fort Collins/Loveland MSA - 16,900 SF on just Under 2 Acres of Land - Located Along an ExtremelyBusy Thoroughfare with Excellent Visibility from Highway 287

• Newly Developed Property - Long Term 15 Year NNN Lease - 10% Rent Increases Every 5 Years

Property Summary


WHY BUY SINGLE TENANT NET LEASE?

- Security - Guaranteed cash flow by a strong company. These

properties are often compared to corporate bonds, yet unlike bonds, STNL properties provide some of the added benefits of owning real estate such as capital appreciation, tax benefits (such as depreciation), and the ability to leverage the asset.

- Low Risk - Leased to a strong company for many years. The tenant

bears the risk of rising operating expenses while they lease the property.

- Minimal Landlord Responsibility - During the lease term the tenant

pays the taxes, utilities, insurance, etc. and pays their rent on time like clockwork because they do not want to risk defaulting and losing the building and their profitable business.


Why Buy Single Tenant Net Lease?


Company: Caliber Collision

Founded: 1997

Number Of Locations: 600+

Vehicles Repaired Annually: 850,000+

Number Of Employees: 10,000+

Headquarters: Lewisville, Texas

Website: www.calibercollision.com

OVERVIEW

• Largest Collision Repair Operator in the US - Over 600 Locations• Pending Merger with Abra will Bring Total Locations to over 1,000 in 37 States• Recession Proof Tenant• Over 850,000 Vehicles Repaired Annually• Huge Financial Backing - OMERS has over 60 Billion in Assets

TENANT HIGHLIGHTS

Caliber Collision Centers ® didn’t become the nation’s largest collision repaircompany by accident. It’s taken an unyielding commitment to their customers,communities, culture, and the highest-quality service. It’s a commitment that beganwhen the company was founded in 1997 and continues strong to this day. CaliberCollision was started in Lewisville, Texas and has since expanded to 19 states alongwith the District of Columbia. They have experienced rapid growth in the past 5years growing from approximately 150 locations to over 600 today. The expansivegrowth has been fostered by Caliber leading the industry in employee training whichranks as the highest number spent per employee in the collision industry. Caliberbelieves that investing in great people has helped to make them the great companythey are today. The company specializes in paintless dent repair, collision bodywork, and services.

THE COMPANY

Caliber Collision Centers was purchased by OMERS Private Equity, Inc in 2013. Withover 6 billion dollars under management, OMERS is the private equity investmentarm of one of Canada's largest pension funds with over 60 billion dollars in netassets. One out of every twenty employees in the province of Ontario is an OMERSmember. OMERS has helped Caliber retain incredible relationships with all majorinsurance companies and has fostered their recent rapid expansion. The top 4companies in the collision industry only own about 12% of the market , which givesCaliber an incredible opportunity, unmatched in any other industry, to continue togain market share.

PARTNERS

The Tenant

Caliber Collision, ABRA to Merge (www.fenderbender.com/articles/11992-breaking-caliber-buys-abra) Dec. 4, 2018—Caliber Collision and ABRA have entered into an agreement to merge. The collision repair companies made their definitive merger agreement official on Wednesday morning in a joint press release; the news had been confirmed by multiple sources to FenderBender late Tuesday. “Today we are excited to share the news that two leaders in our industry, Caliber Collision and Abra Auto Body Repair of America, are joining forces to create the collision repair provider with the broadest geographic coverage in the United States,” a memo, obtained by FenderBender and issued from Caliber and ABRA management to its employees on Tuesday, stated. “We are confident that this combination will transform the collision repair customer experience like never before, position us for additional growth, and open up new career growth opportunities for our valued teammates.” On Wednesday, the companies officially announced their merger agreement by saying the merger will allow them to better serve their customers and insurance clients. The transaction, which, according to the companies is expected to close in early 2019, creates a collision repair supergiant with nearly 1,000 locations, and drastically changes the landscape of consolidation in the U.S. auto body industry. ABRA, which in October completed an acquisition of 38-shop Cooks Collision, had 390 facilities in 28 states prior to being purchased by Caliber. Caliber acquired its 600th location in August, earlier this year. Steve Grimshaw, Caliber's CEO, said in a press release that "with more than 1,000 stores in 37 states and the District of Columbia, we look forward to providing customers and insurance clients with the flexibility and convenience that come with the broadest geographic coverage in the United States and a full suite of services." David Roberts, managing director at FOCUS Investment Banking, a firm that handles many of the industry's acquisitions, told FenderBender that the "two behemoths will merge into one $4 billion giant." Roberts, who was not involved in the merger, said that his understanding was that "Helman & Friedman, the private equity owner of ABRA, has agreed to buy 55 percent of Caliber Holdings with current investors, OMERS, Leonard Green and management continuing to hold the remainder of the new entity. "Caliber's strategy is to continue to grow aggressively, and if you have 12 to 15 percent of the market share, which I believe they do, that gives them much more power than they had before." Caliber brand's Grimshaw will lead the combined company. According to the companies' memo, all locations will remain open and “both companies will continue on their growth trajectories.” The company will operate under the Caliber brand. "The combined entity is expected to continue opening brown and greenfields as well as continuing the aggressive acquisition schedules that both had embarked upon in 2018," Roberts said. And, in Wednesday's joint press release, it was noted that the combined company was created in an effort to offer customers more offerings, including dedicated non-drive, express, and aluminum-certified repair centers. Changes will not occur for several months. In Wednesday's statement, ABRA CEO Ann Fandozzi said: "Our industry becomes more complex every year. The combined company will invest in the equipment, training and technologies that will allow our teammates to build their careers while continuing to meet and exceed our customers' needs for years to come."


News Article - Caliber/ABRA Merger


Site Plan


Additional Photos

2 LOCATIONINFORMATION

5486 N. Garfield Ave.Loveland, CO 80538

NNN CALIBER COLLISION | 5486 N. GARFIELD AVE. LOVELAND, CO 80538 SVN | Denver Commercial |


LOVELAND, CO

Nestled between the Rocky Mountains, Colorado’s high plains and Denver International Airport – Northern Colorado communities consistently rank as some of the bestlocations in the country for business, lifestyle and craft beer. The city of Loveland forms part of the Fort Collins-Loveland Metropolitan Statistical Area and the Front RangeUrban Corridor. Loveland is situated 46 miles north of Denver and is the second most populous city in Larimer County.

CITY INFORMATION

Population: 76,897

Founded: 1977

Median Age: 35.3 Years

Median Household Income: $72,922

Median Home Sale Price: $224,565

Elevation: 4,982

CITY HIGHLIGHTS

• #4 Fastest Growing City in Colorado

• #1 Boomtown designation by Smart Asset 2015

• Livability Top 100 places to live

• Gallup and Healthways Well-Being Index-Voted third healthiest city

• 1 hour to Denver International Airport

• 17 miles of hiking/biking paths

• Northern Colorado anticipated to gain over 660,530 people by the year 2050 (Denver Post)

City Information


Retailer Map


NNN Caliber Collision NNN Caliber Collision

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NNN Caliber Collision

Regional Map


POPULATION 3 MILES 5 MILES 10 MILES

Total population 38,512 93,975 289,935

Median age 38.3 38.5 34.9

Median age (Male) 36.3 37.2 34.0

Median age (Female) 40.0 39.3 35.7

HOUSEHOLDS & INCOME 3 MILES 5 MILES 10 MILES

Total households 15,020 38,257 116,017

# of persons per HH 2.6 2.5 2.5

Average HH income $77,006 $75,796 $71,929

Average house value $253,954 $254,852 $267,523

* Demographic data derived from 2010 US Census

Demographics Map

NNN CALIBER COLLISION

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