Overview
The Ovaness-Rostamian Group of Marcus & Millichap is pleased to present the exclusive offering of two trophy automotive dealership properties leased to Penske Automotive Group,Inc. (NYSE: PAG), strategically located in the prestigious Santa Ana Auto Mall in Orange County, California. The Volkswagen and Audi assets may be purchased together or separately, offering flexibility for a wide range of investor profiles. Penske recently exercised one of four (5-Year) Options for each location. Both properties are 100% NNN leased through December 31, 2029, with three (3) five-year renewal options, with non-cumulative CPI increases every 5 Years capped at 12.50%, delivering stable, long-term cash flow backed by a corporately guaranteed lease from one of the nation’s leading auto retailers.
In the first year of ownership, investors may realize substantial tax advantages through a strategic cost segregation approach. By leveraging both 100% bonus depreciation and straight-line depreciation methods, the property could generate between $7,588,951 and $9,461,700 in potential tax shelter. These benefits significantly enhance the after-tax return profile for investors. For a detailed breakdown of these projections, please refer to the Cost Segregation Study included in the Financial Analysis section.
Investment Highlights
Two Trophy Dealership Assets:
Exclusive Offering of Volkswagen and Audi Dealerships in the Prestigious Santa Ana Auto Mall, Orange County, CA. Properties May Be Purchased Together or Separately, Appealing to a Wide Range of Investor Profiles.
Long-Term, Predictable Cash Flow:
Both Properties Are 100% NNN Leased to Penske Automotive Group, Inc. (NYSE: PAG) Through December 31, 2029, With Three (3) Five- Year Renewal Options, Providing Stable Income and Long-Term Upside. Penske Recently Exercised One of Four (5-Year) Options for Each Location With Both Having Increases Every 5 Years Based on Non-Cumulative CPI Capped at 12.50%.
Strong Credit Tenant:
Penske Automotive Group Is the Second-Largest Publicly Traded Auto Retailer in the U.S. by Revenue, With a BB+ S&P Credit Rating (Stable Outlook) and a Market Capitalization of $11.53 Billion.
First Year Tax Benefits Cost Segregation:
Utilizing 100% Bonus Depreciation and Straight-Line Depreciation, Investors Can Potentially Achieve Between $7,588,951 - $9,461,700 of Tax Shelter Year 1 of Ownership. Please See Cost Segregation Study in the Financial Analysis Section for Further Details.
Strategic Market Position:
Penske Has Made Significant, Long-Term Investments in the Santa Ana Auto Mall, Where It Owns and Operates Multiple Dealerships Including Audi, BMW, VW, Mini, and Saab, Reinforcing Its Commitment to the Market.
Major Capital Improvements • Audi Site:
$7 Million Redevelopment in 2010, Reducing Relocation Risk and Enhancing Asset Value. • Santa Ana Portfolio: Over $70 Million Invested in Upgrades and Renovations Across Penske’s Dealerships.
Prime Orange County Location:
Located in the Prestigious Santa Ana Auto Mall, With Direct Access to the 55 Freeway (Edinger Ave Interchange). Exceptional Visibility and Strong Traffic Volume Make This an Irreplaceable Dealership Location.
Enterprise Zone Benefits:
Both Assets Are Situated Within the Santa Ana Enterprise Zone, Providing Valuable Tax Incentives for BusinessesandEmployees.
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