caliber-collision-des-moines-ia

Deep Tenant Commitment Backed by Institutional Credit: The landlord’s $189,000 dollar investment in tenant improvements reflects a highly specialized collision repair buildout, effectively sticking the tenant to the site due to high relocation costs and infrastructure dependency. The tenant, Caliber Collision, the largest collision repair operator in the United States with more than 1700 locations, maintains preferred relationships with major insurance carriers, ensuring a consistent, insurance driven customer pipeline. The lease is corporately guaranteed and backed by Hellman and Friedman, significantly reducing default risk compared to franchise or local operators.
Strategic Positioning in a High Growth, Stable Metro: Located in Des Moines, one of the fastest growing metropolitan areas in the Midwest, the property benefits from a diversified and resilient economic base anchored by insurance, finance, and government sectors, supporting a stable, high-income population that consistently maintains and repairs vehicles. Positioned along NW Prairie Lane, the site captures traffic from rapidly expanding northern suburbs, offering strong accessibility, high vehicle density, and proximity to key thoroughfares critical for collision center performance.
Zoning Barriers and High Cost to Replicate Specialized Facility: Auto body and collision repair zoning is increasingly difficult to obtain due to noise, environmental, and land use restrictions, creating a meaningful barrier to entry and protecting the site from future nearby competition. The 12600 square foot facility sits on approximately 1.5 acres and is purposely built with specialized bays, ventilation systems, and drainage infrastructure. Replicating a similar asset today would require significantly higher costs, reinforcing long term value as construction and land prices continue to rise.
Stable NN Lease Structure with Reduced CapEx Risk and Fee Simple Upside: The double net NN lease requires the landlord to maintain the roof, structure, and parking lot; however, with the asset built in 2019, these major components remain in the prime of their lifecycle, significantly limiting near term capital expenditure exposure. This structure provides operational security while still allowing ownership to benefit from fee simple depreciation advantages.

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Adam Marek