|Address:||832 E. Moreland Blvd. Waukesha, WI|
|Net Rentable Area:||1,151 square feet|
|Parking:||Ample with room for more|
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Valvoline Oil Change is owed by Ashland Inc. (NYSE: ASH). Ashland serves more than 100 countries worldwide and is a leading marketer, distributor and producer of quality branded automotive and industrial products and services. Fiscal 2013 sales for Ashland Inc. exceeded $7.8 Billion. Valvoline Instant Oil Change has done over 100 Million Oil changes at over 900 locations throughout the US for over 25 years. Valvoline Instant Oil Change operates both franchised and corporate locations.
Great Lakes Quick Lube Ltd. is headed by its Operating Partner Jim Wheat. Mr. Wheat has over 40 years experience in all levels of automotive retail and franchise management with a proven record of turning around troubled companies through brand development and implementing proven business practices. He started his career as part time “Stock Boy” in a Western Auto store and spent the next 18 years with the company holding numerous management positions. Wheat joined Pennzoil Company in 1990 as part of the management team recruited to head up the Jiffy Lube acquisition, initially supervising the Eastern franchise operations. Mr. Wheat worked with the management team and Franchisees to successfully resolve franchise conflicts.
He was promoted to Sr. VP in 1992, developed a company store division as part of the franchise conflicts resolution and ultimately to Exec. VP, assuming responsibility for all company and franchise operations. He was promoted again. This time he was promoted to President of JLI and Group VP of Pennzoil in 1995. He lead the company to record sales, earnings, store count growth and solid franchisee relations.
In 1998 Mr. Wheat was recruited by the Penske Corp as President of Penske Auto Centers (formally K-Mart Auto Centers), an acquisition troubled and unprofitable at the time. He retooled the business model and utilized his experience to improve sales and earnings annually until 2002 when the Kmart Corporation filed for bankruptcy, resulting in several hundred PAC locations being closed.
From 2002-2004 he utilized his experience in retail automotive service business to take on troubled entities in order to determine the viability of the entities for their current management and ownership groups ( including Big-O Tires). This ultimately led him to connect with a private equity group in 2004 to build, manage and run Great Lakes Quick Lube Ltd.
|Investment Strategy||Buy and Hold|
|Hold Period:||7-10 years|
|Total Project Cost :||$500,000|
|Property Type :||Free-Standing Single-Tenant Retail|
|Net Rentable Area:||1,151 square feet|
|Distributions:||7.02% First Year
Cash on Cash grows annually by .11%
7.90% Eighth Year
|Purchase Cap Rate:||8.56%|
|Projected Distribution Timing:||Monthly|
|Estimated Closing Date:||May 1, 2015|
Mr. Schwetz has managed, leased, and financed over 1 million square feet of retail real estate and has financed over $100,000,000 worth of commercial real estate. As a member of the International Council of Shopping Centers for the past 28 years, Mr. Schwetz holds the highest designation of CRX, Certified Retail Property Executive as well as a CSM, Certified Shopping Center Manager. Additionally he has been a licensed California Real Estate Broker since 1988.
JDS Real Estate Inc. leverages its extensive relationships with owners, lenders and listing brokers to access retail and single-tenant properties. Over 50% of previous deals and existing deals have been acquired through off-market or limited market processes.
Jason Schwetz is also the Founder, CEO and President of JDS Restaurant Group Inc. For over 22 years, JDS Restaurant Group Inc. has owned and operated Senor Grandes Fresh Mexican Grill located in Woodland Hills, CA. JDS Restaurant Group, created, built and operated 4 quick-service restaurants. Three of the four restaurants were sold between 1995 and 1997. The Woodland Hills location continues to serve delicious, fresh Mexican food.
When Jason is not working (which is rare) he is an avid hockey player, fan and coach.
Note: The financials below assume 1814 LLC invests the full amount of the funds needed to close this transaction.
NO REPRESENTATION IS BEING MADE THAT ANY TRANSACTION WILL OR IS LIKELY TO RESULTS OR PROFIT SIMILAR TO THOSE SHOWN. THIS ESTIMATE IS NOT A GUARANTY. ESTIMATES OF PERFORMANCE DOES NOT MAKE OR IMPLY ANY PERFORMANCE REPRESENTATIONS OR GUARANTEES.
ALL TRANSACTIONS ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH AT WWW.TRIPLENETZERODEBT.COM AND ALL DOCUMENTS RELATED TO THIS TRANSACTION AND THE LEGAL DOCUMENTATION AND AGREEMENTS THAT ARE A PART OF THIS TRANSACTION.
|Equity Breakdown:||* Member’s Equity – $250,000 – 90.91%
* Managing Member’s Equity – $25,000 – 9.09%
|Project Funding:||* Equity – $275,000 – 100%|
|TOTAL USE OF FUNDS||$275,000|
Members will earn monthly distributions equal to 7.1% of their equity contributions until 8/31/2017. Commencing 9/1/2017 (assuming the first option is exercised) Members will earn monthly distributions equal to 7.2% of their equity contributions until 8/31/2022.
All operation expenses of the LLC will be deducted from the LLC first prior to any distributions. Examples of deductions include but are not limited to: filing fees, accounting fees, tax returns, K1s, legal fees, and reserves. Because any and all fees are not known at this time, Members distributions stated above are reasonable estimates.
Distributions will commence on the 91st day following the closing. The first two months of rental income (estimated to be $3,781.00) will be added to the Properties reserves.
The above distributions does not include any distributions (if any) that will result from the sale of the Property. Any distributions made as a result of Sale Proceeds (if any) will be in addition to the above cash on cash returns.
All distributions are at the discretion of TripleNetZeroDebt.com and the Managing Member, who may need to delay distributions for any reason, including but not limited to: maintenance, repairs, replacements or capital reserves. All distributions are contingent upon the tenant paying its rent and CAMs in a timely manner and/or exercising its Option(s).
Ninety percent of all distributable funds will be first distributed to the Members, then ten percent will be distributed to the Managing Member (or its assignee) until such time as all Members have received their initial capital contribution. After all Members have received their full initial capital contribution, then all future distributions will be distributed sixty-five percent (65%) to the Members and thirty-five percent (35%) to the Managing Member. The Managing Members distributions are in addition to any and all distributions due the Managing Member as an investor Member.
Certain fees and compensations will be paid over the life of this transaction. Please also see the Management Agreement which is part of this transaction and may include additional fees.
Type of Fee
Amount of Fee
4.75% of purchase price ($13,000)
4.75% of sale price (upon Sale of Property)
This page list some frequently asked questions that pertain to this specific Property. Please feel free to submit your own questions by emailing them to: info@TripleNetZeroDebt.com
Owners of properties sell for any number of reasons. Why a Seller is selling is not the question, the question should be “Why is the buyer buying?” If you are satisfied with the due diligence and the financial benefits are acceptable, then the buyer should buy and the investor should invest.