Legacy Automotive Capital (Legacy) recently completed the sale/leaseback of Kia of West Nyack and Clifton Park CDJR in partnership with one of the country’s fastest growing dealer groups, Dennis & Co. Automotive Group (Dennis & Co.). Chelsea Mandel, founding partner of Ascension real estate advisory firm, advised Dennis & Co. on the transaction.
Dennis and Co., with stores in Manhattan and the surrounding greater New York City MSA, utilized Legacy’s sale-leaseback program to access the “Real Estate Blue Sky” or growth capital trapped in its real estate holdings. Dennis & Co. will use the proceeds to support its existing dealership footprint and to fund its future Buy/Sell expansion efforts.
Brian Dennis, Dennis and Co.’s CEO stated: “We continue to be focused on expanding our dealership network and Legacy offered a way to provide us with a competitive advantage in the Buy/Sell marketplace by unlocking the value in our real estate. Legacy offered the most competitive terms by a significant margin and was able to execute and close quickly. We look forward to partnering with them on future deals”.
Legacy, which has raised a $1.5bb fund to purchase New Car Franchised dealership real estate, added these two assets to what was a record-breaking quarter for the young company. CEO Benjamin Catanese stated: “It was a pleasure to work with Brian and his team on this transaction as they understand the importance of building the most efficient capital stack in the hyper competitive market for dealership Buy/Sells. We will certainly work together again in the near future.”
Real Estate Blue Sky: The hidden value dealers have in their real estate in excess of appraised value.