auto service - loopnet · 2019. 8. 26. · largest independent auto service centers in sonoma...

DRIVE RITE Auto Service

An Established Auto Service Center

Windsor, CA Presented by Richard Paille

REALTOR®



CONFIDENTIAL: This business has never been offered for sale. Information contained herein is not for public

dissemination. Please use discretion as you investigate the details, property and business when you investigate the

property and perform an expected due diligence. It is required that viewers of this prospectus acknowledge the reading,

approval and acceptance of a non-disclosure agreement.

Table of contents:

1. BRIEF Summary Market and Location of Auto

Service Business

2. Goals and History of the business enterprise

3. Present Operations

4. Automotive Service Excellence

5. Building and Grounds

6. Scope of Business

7. Who is Served

8. Demographics: Pending development /

maps, planning descriptions

9. Town of Windsor and Other Neighboring In-

fluences

10. Financial Proforma Information

11. Conclusion: Disclaimers and Caveats


Unique Auto Service Center

Drive Rite is a million-dollar auto service center with a loyal customer base, a

long-term professional staff and a location/facility that would be next to impossible to duplicate in the current environment.

The care for customers, the attention to the needs of the staff and the quality of the facility are unequaled in a non-franchise auto service center that

enjoys SIX Figure revenue each month.

Location/Location/Location. Fronts US Hwy 101, surrounded by a dynamic growing community,

median age is 40.2 years and median income per household $86,192, providing the foundation for

long term success. The business is poised to take advantage of a large surge in the area population

growth planned for the next 5 years.

Size: 12,000 sq. ft. of heated

building

Parcel: 1.6 acres Fronting US

HWY 101

12 Full-time employees


Auto care has become specialized and technical. There is an assured future for a top-quality auto care center in any

urban corridor. A large clientele of retail and commercial customers depends on this regional auto service

center to keep them on the road. A trained staff with the state of the art tools is available with this offering.

The Market:

Today there are 17,000,000 cars

and trucks manufactured around

the world every year. There are

1 billion cars on the road


SECTION 2

Driving Goal of the Drive Rite Business Enterprise

Don’t worry. We’ll take care of you.

The emotional connections with a vehicle

and their owner and their service center has

been a highly regarded part of the business

philosophy. Repeat clients and referrals are

common elements that have made this busi-

ness a magnet for area residents.

The technical work is well done. The facility

is clean and welcoming.

Vehicles are complex machines that

represent one of the most expensive items

within a household. For this reason, they

can cause anxiety and financial strain.

Consumers are met with a wide variety of

choices when it comes to taking care of their

vehicle investment. Visit our website: http://www.driveriteauto.com

Getting to know, like and trust your auto service center is the hard part of the equation.

Since establishing Drive-Rite as an independent auto service center in Healdsburg, C in 1989 the business has

prospered because the management has stressed making the customer experience exceptional.

http://www.driveriteauto.com


Owners of modern vehicles can be intimidated by the complex data driven machines they

depend on. At Drive Rite efforts are made to make the customer feel comfortable. The lobby is

inviting. It is bright, clean and well attended. Customers find a friendly smile and a warm

greeting when they need auto care. They also feel confidence in the highly skilled auto

technicians who they work with.

HISTORY:

With forethought and practical experience, the

Drive Rite team designed a state of the art auto

center that would accommodate a wide range of

vehicles. Work space ergonomics were addressed.

A modern workflow pattern was incorporated into

the plans. Customer comfort was considered.

The highly visible location of the project site that

sits adjacent to the main N/S route of US Hwy 101

will continue to gain value as future predicted

growth emerges.

In 1990 when the owner embarked on the development plans for a state of the art auto service

center, Windsor, CA, emerged as the place with a future in the North Bay Area.

Demographic trends were considered. Household net worth, job creation and residential

growth patterns were researched.


Since the development of

Drive Rite’s new location,

the population has more

than tripled. The town

became a modern suburb

with new development,

including homes, schools

and shopping centers.

There is a healthy mix of economic engines that drive

the Bay Area economy. No one sector is dominant.

Sonoma County is viewed with these

five main categories:

Small manufacturing, technology and innovation

Wine industry with production and distribution

Government Services

Finance, Insurance and Real Estate development

Retail/small business and national chains (Sorry this is not the affordable community of Windsor, but it is an hour

away heading north). AT&T Park, home of the Giants, and San Francisco

Growth is continuing and described in

more details in the section marked

“Community Demographics”


Everything done in the development of this business was done with an eye toward the

expected growth.

Demographic studies that have been used by area planners were researched. The shape of the

community was anticipated in its early planning stages.

This foresight allowed Drive Rite to become a main

hub for area residents in need of auto service.


Designed by a mechanic to be a state of the art auto center, Drive Rite is one of the

largest independent auto service centers in Sonoma County under one roof.

Attention to the needs of a skilled workforce has been built into the facility. Based on

experience and research into the work-flow, production is enhanced. One will find in

the shop areas, double bays, large workbench areas and plenty of natural light.

The staff works to educate the customer so that they can make an

informed decision based on their needs, resources and time.

The workers at Drive Rite understand that people are stressed and

confused when it comes to needing auto services.

Customers know that auto maintenance is costly. They are often

facing many choices. The atmosphere and the staff at Drive Rite

are helpful and pleasant to deal with.


The staff is on salary and not

compensated by

commission sales.

There is no

Emphasis on “UP” selling.

There is even a children’s play area for

family ease.


Section 4

Automotive Service Excellence ASE certified technicians are the cream of the

crop. At Drive Rite they make up the majority

of the day to day staff.

Four highly educated auto service techs have

been with the

company more than

10 years. Two

technicians are

“Master

Technicians” with

college degrees in

automotive

technology.

The auto industry is a job creator. As

cars become more and more improved,

they became more complex. Systems

have become more refined and difficult to

maintain.

Special tools and superior skills are need-

ed to achieve the excellence demanded by

customers.

Demand for trained auto technicians is high. Today a qualified automotive tech is a

highly regarded tradesman, supported by a $ billion market place.

The ethics of the National Institute for Automotive Service Excellence, a non-profit

organization is woven into the fabric of Drive Rite.

The staff has worked to gain training and certifications that improve the quality of

vehicle repair and service.

ASE promotes excellence in the auto service industry.

Three of the customer support staff are ASC certified. Four customer support staff

are available on most days to ensure that customers at Drive Rite are cared for.


There is no place like this in the

North Bay Area!

If you started today, from scratch, one could be entangled in bureaucratic

red tape and development restraints for years in order to duplicate just

the plant and facilities of Drive Rite.

Upon years of effort and the expenditure of vast financial resources, you

would have to gain the market share and trust of this affluent community.

Then you would have to compete with the Drive Rite Auto Service Center.


Section 5

Building and Grounds

This turnkey operation is available for the first time ever. There is both an existing $ million income stream and a real estate equity position that could not be easily duplicated in

today’s real estate space.

This offering represents a once in a lifetime opportunity for an operator who is driven to succeed and has a passion for the

auto industry.

Located in a highly visible corridor that draws customers, Drive Rite has a reputation for quality work and the ability to service

a wide variety of vehicles.

This business is a strong pillar in the community with an existing clientele. It is located in an affluent and growing

region of northern California’s wine country.


Permits and Public records information available for

review at Sonoma County Administration Ctr.

(apn: 161-060-047)

Building built: 2002 Size: 11,890 sf

Parcel: 69,696 sf.


New Bell Village Development

Drive Rite Auto Center

Excellently located between the 101 Freeway and Old Redwood Highway near many residential and commercial

Developments, including the new Bell Village development.

DRIVE RITE

The modern design of the high ceiling, glass covered lobby

was unusual for an Auto Service Center.

Auto Service

Behind the service counter and lobby is a wall that hides a wide

walkway. This corridor functions as a sound wall. It separates

the back shop so that the industrial work is muffled.

Customers are insulated from the harsh environment of the

work place. There is a quiet calm and bright lit lobby to discuss

their concerns.

Machines and auto techs are separated by this wide hall-like

floor to ceiling air space that is quite ingenious.

The Customer Experience was important

as the business plan was laid out.

Customers discuss their needs over granite countertops with service

writers who relate to their needs.


The fumes and chaos that is often in evidence at an

auto service center have been insulated.

The customer remains safe. The work going on behind

the wall is hidden from view and technicians are able to

focus. Interruptions are kept to a minimum which helps

to achieve high efficiencies for staff. Vehicles are moved

in and out without commotion, while customers enjoy a

pleasant and secure feeling in the front lobby.

A fenced yard secures customers cars in a locked compound when the vehicles are re-

quired to be stored.

SECURED Fenced and monitored yard:

This paved lot is frequently

accessed during the day by the

auto techs who work in drive

thru bays when repairs are

made. The secure area stores

customer vehicles for a short

term period.


Section 6:

The Scope of the Enterprise:

Everyone at Drive Rite exhibits a pride in the

workplace. Staff and management have a

genuine concern for the good of the

organization.

The range of experience is wide within the

company.

A core philosophy of management has been to

make the customer experience excellent and

to provide a nurturing environment for

employees.

The business employs 12 people. The newest employee

joined the firm about ten years ago.

At Drive Rite all auto techs are on a set salary. Long term employees enjoy 401K retirement plans and are

covered by an employer provided health plan for themselves. Employees can supplement payments under

medical insurance policies for immediate family.

The salary ranges at Drive Rite range from: $35,000 to $70,000 per year.


This allows for efficient productive use of time and space. The bays are

uncommonly wide and each accommodates two standard sized vehicles.

Techs like the extra space as it accommodates specialized tools and allows for

ease of access around a variety of vehicles.

Change has been the constant in the modern

transportation industry.

It is a testament to the quality of the administration, the passion for

the business and work place environment that most of the long-term

employees have worked for the company more than 10 years.

Technicians/Mechanics, most of whom are college graduates, are also

ASE Certified. Continuing education is encouraged. There are 4 on

staff who have California Smog Certifications.

Technicians work in double bays that have front and back access.

There are 12 bays total; each bay can accommodate 2 vehicles.

On weekends, when the shop is closed, a professional crew of property

maintenance specialists are employed to clean the whole facility. The

weekends find the auto lifts in each bay raised so that maintenance people

can have easy access to clean the garage floor area. Workers enjoy a large

clean work space that allows them to be well organized and productive.

Such work space adds to job satisfaction.


TECHNOLOGY:

Technology is a big part of the modern auto

service center’s life blood. Tech tools are

expensive, easily misplaced and require

trained technicians to operate them.

Training in car and truck care has evolved because of the com-

plicated systems that the modern vehicle employs. A high

degree of education has become necessary. The staff has

become skilled in interpreting advanced logics and

electrical circuits that are central to a modern vehicles

performance

Protected in a special room are lab scopes and scanners that are provided to the techs to assist them

in diagnosis. The company subscribes to a majority of factory sites and data sources to stay on the

cutting edge of auto repair frontiers.

Beyond the electronics imbedded in the modern vehicle, there

remains a basic mechanical element that needs attention. Brakes, engines,

transmissions, heating and cooling systems, tires and more necessitate that

auto techs seek out continuous schooling to keep up with modern demands on

their skill sets.

The facility can do jobs that many other

garages must turn away.

Drive Rite has commercial customers who

depend on them to keep their cars and

trucks up and working.


Section 7: Who is Served

Drive Rite is a full auto service center.

From a small oil change, to an engine replacement to

traveling family stuck with a disabled motor home they

can attend to their needs.

Most auto service centers cater to a customer base

that is less than ¾ of a mile in diameter. Due to the

nature of the facility, the quality of the technical

staff and the ability to service large heavy vehicles

like medium duty trucks and motor homes, Drive

Rite has a much larger reach

Tires are available as well as many smaller parts that

often require replacement.

Commercial fleet customers are a regular part of the customer base.

Complete auto care is offered for:

The family car or SUV

The light duty truck / van

Fleet services for commercial cus-

tomers

Medium duty commercial trucks

Specialty vehicles

Recreational vehicles

Sports cars and classic vehicles


Section 5

DEMOGRAPHICS: Pending Development

The busiest thoroughfare in the city limits is the road in

front of Drive Rite, the old Redwood Highway.

It extends to the North bound Hwy 101 freeway on ramp

that intersect Arata Lane that is planned for improvement.

The city has funding in place to widen the Old Redwood Hwy

to four lanes.

Adjacent to the Drive Rite property are large parcels that

have been designated for mixed use. This is expected to in-

clude retail, office and residential uses. Many projects are in

the planning stages.

Residential and nonresidential construction is on the rise to

meet this pent-up demand. The value of non-residential

building permits has increased much faster than the value of

residential housing permits.

HOUSEHOLD INCOME: The median household income in Windsor grew by 23%

between 2000 and 2015 to $77,205. Growth is expected to continue with median

income rising to $86,914 by 2020.

HOUSEHOLD MAKE UP: The median home price had dramatically increased over

the years as demand has grown and supply has been limited. The average house-

hold size was pegged at 2.98, with families (74.8%) making up the majority of all

households. There were 8,890 households counted in the last census (2010)

Sales tax revenue has been trending higher over the last 4 years with gains in excess of 10%.


is one of the largest mixed-use projects ever proposed in Windsor. Bell Village when

fully built will include 387 apartments and 83,500 sq. ft. of commercial space.

Next door to Drive Rite

The 1st phase has been completed. The next residential phase has been started. Officials have sought such

development for years. Completed in 2017, a commercial center anchored by Oliver’s supermarket brought a much needed upscale

supermarket to the west side of the town. The 34,000 sf Oliver’s supermarket is part of the

first phase of Bell Village.

The SMART Train station, soon to be expanded, is a

short walk from Drive Rite Auto Service Center.

The Downtown/Village Green, a short five minute walk from DRIVE RITE draws locals and visitors to boutique shops, restaurants and small events in the large green park forms the focal point.


Section 9

The Community in the North Bay

Windsor is an incorporated town in Sonoma County. The town is 9 miles north of Santa Rosa and 63 miles north of

San Francisco. According to the 2010 census the population of Windsor was 26,800.


The quality of its Windsor Station

Area Plan:

The Northern California Chapter of the American Planning Association has selected the Windsor Station Area Plan to re-

ceive the Comprehensive Plan – Small Jurisdiction Award at the 2014 APA Northern Section Awards. EPS participated as

part of a multi-disciplinary team that developed the Plan for the area around Windsor’s downtown rail station. The Wind-

sor Station is part of Phase II of the Sonoma Marin Rail Transit (SMART) system. Construction of Phase I (from San Rafael

to Santa Rosa) is underway. EPS prepared a market demand analysis that evaluated the economic and real estate market

conditions and trends that will shape near and long-term growth opportunities in the Downtown Windsor Station Ar-

ea. EPS’s research and analysis targeted the housing, office, retail, and hospitality sectors. The work also helped to frame

the public participation and visioning process to ensure that realistic and achievable concepts were carried forward. The

Station Area Plan was adopted by Windsor Town Council in January of 2012

Being a healthy company:

The Town of Windsor was recently recognized as one of the 20 Healthiest

Companies in the North Bay by the North Bay Business Journal. The Town’s profile

will be featured in a special section of the November 23 edition of the North Bay

Business Journal. The town was also honored at the 2015 Health Care Conference

on Friday, November 20, held at the Hyatt Vineyard Creek in Santa Rosa. Mayor

Okrepkie accepted the award on behalf of the Town.

Windsor has received awards or recognition for: The quality of its Old Redwood Highway Improvements Project:

Windsor, California (October 24, 2016) – The Town of Windsor was recently selected to receive the “Infrastructure of the Year – Innovative Design” award from the American Council of Engineering Companies (ACEC), North Coast Chapter, for the recently completed Old Redwood Highway Improvements Project fronting Bell Village.


Neighboring Influences: Complimentary Development in the area

LYTTON RANCHERIA TRIBE IDENTIFIES PROPERTY

OVERVIEW:

Indian tribes have long been held to be distinct political communities. They

retain a sovereign status. This inherent sovereignty of tribal governments is

acknowledged in the United States Constitution, as well as treaties, legislation

and judicial and administrative decisions. Land is essential for tribes in order

for them to function as governments.

Tribes have been awarded trust lands so that they can provide governmental services for their members, such as housing, health care, education, economic

development.

Within the business sphere of Drive Rite

a large tract of land will soon see more

residents and potential customers.

Located west of Starr Road, east of

Eastside Road and south of Windsor

River Road, the 124-acre proposed

project includes 95 single family homes,

24 senior cottages and 28 townhomes. In

addition, there will be a 18,000 square

foot Community Center, a 4,200 square

foot Retreat and a ceremonial

Roundhouse, along with multi-use trails

and open space.


Section 10

Financials:

The following financial proformas reflect the income and expenses of an auto service business; however the actual books and records are reserved for review upon the submission of an acceptable offer to purchase. A written agreement and significant good faith deposit to purchase the land and business is required.

Drive Rite Proforma:


Getting Financing to Buy a Business:

When you start to buy a business in California, you probably have some ideas about talking with a banker or broker to help

you discover the many ways to fund your purchase.

Here are FOUR strategies for raising that extra money that has helped many buyers successfully close on their

transactions:

1. Non-SBA Lending Institutions:

The first place most people think of is a bank, savings and loan or credit union. A good candidate is a local business bank that may be willing to help finance the transaction if the buyer will then use that institution to handle the business banking needs for the business. The bank wants to build a relationship for the long term, not just make a purchase loan. Merchant credit card services, future lines of credit and leasing options are part of the banks business that they can employ to build the long term relationship that will endure them to the business owner.

2. SBA Loan Program:

Financial institutions in the SBA lender network offer a variety of loans. If the borrower is short on collateral, but long on experience in the business the (7)a loan could work well. The lender is willing to make this type of loan because the repayment is guaranteed by the Federal Small Business Agency. The emphasis here is on the borrower’s ability to repay the loan, rather than the assets of the borrower. The buyer/borrower applying for an SBA loan program should be prepared to provide a great deal of information about work history and about the financial performance of the company being purchased. Members of its network need to follow the SBA's strict lending guidelines so the loan originator is satisfied that the business will generate enough revenue to cover the loan payments, and that the buyer/borrow has the experience need-ed to successfully run the business.


3. Private Lenders:

Borrowers who do not want to deal with government regulations and traditional bank guidelines have the option to seek

money from individuals or groups that lend money for business purposes.

The downside of this is that they probably will charge higher interest rates than financial institutions and require collateral

with value that meets or exceeds the loan amount. Be prepared to offer a second deed of trust in your home as security,

and to receive a foreclosure notice if you fall behind in payments. The benefits are quick turnaround from application to

funding, and the possibility of getting funding for a deal that doesn't fit the guidelines followed by conventional or SBA-

backed or Non-SBA financing firms.

4. Retirement Accounts:

Although many people think they can't touch their 401k or other retirement accounts before a certain age, the IRS rules

do permit tax payers to roll over funds from their retirement accounts into corporations set up for the purpose of buying

a business. This is not a DIY (do it yourself) project, however. The buyer/borrower contemplating using retirement sav-

ings for a down payment on a business purchase should consult with a tax lawyer or accountant to make sure to follow

the strict rules by which money from a retirement fund can be accessed, without penalty, for the purpose of buying a

business.


Section 11

CONCLUSION: The opportunity presented herein is enormous. This multi-million dollar auto service center is one of the best in California. Given the political climate, the environmental issues and the gentrification of the area, a large auto service center of this scale could take several years to acquire approvals needed. This is a best of class business and real estate offering. The location and facility would be almost impossible to duplicate due to social/political barriers to entry. NIMBYISM (Not In My Back Yard) is a common deterrent to any auto or industrial development in a community with an affluent educated population that will create a barrier to development of competing upstarts from gaining a foothold. Drive Rite enjoys an enviable reputation. The elements are in place to create and abundant life. The right operator can achieve a lifetime income stream. This is a highly sought desirable northern CA environment. The future owners of this business can be expected to prosper as the community grows.

CONFIDENTIAL: This business has never been offered for sale. Please use discretion as you investigate the details, property and business when you perform an expected due diligence. The owner is open and cooperative, seeking to find a buyer that will seamlessly follow in his footsteps. Such a buyer will be sensitive to the needs of the customers and workers who have shown their loyalty to Drive Rite. This opportunity is coming to the market because it is the intent of the current owner to cash out and retire. The information contained herein is considered confidential and subject to a not disclosure agreement. Drive Rite is a large presence in the community. A large loyal client base exists and is expected to grow. Regulars are well acquainted with the quality of the skilled team that is in place. It would be difficult to duplicate this business in the current social/economic atmosphere. Today the owner en-joys an abundance that is enviable in the auto service business. The capacity to sustain the current sales levels of the Drive Rite business seems to be simple. Like the customers who feel confident in having their vehicles needs met soon after pulling into the parking lot, a ready, willing and able buyer will feel secure in the whole package that is offered herein. There is sustainable income and a tremendous upside potential to expand the business.


RISK:

The prospectus is based on research and opinion gathered from many sources and while it is deemed to be reliable, it

cannot be guaranteed. Figures stated herein for income, building sizes and lot dimensions are estimated and proxi-

mate.

This business opportunity and real estate investment contains risks that may not be suited for all buyers. All buyers

and interested parties are advised to use due diligence, seek out their own research and determine the facts as they

wish to make any decisions to pursue this opportunity.

This investment contains risk and you may lose money. Buyers are advised to proceed at their own jeopardy and seek

appropriate council as desired.

Richard Paille

REALTOR®

707.328.3993

[email protected]

DRE# 00517699 FULL SPECTRUM 737 4th Street, Santa Rosa, CA 95404

DRE# 01522223

Each office independently owned and operated

auto service - loopnet · 2019. 8. 26. · largest independent auto service centers in sonoma...

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