Legacy Automotive Capital grows in real estate partnerships with dealers
Investment firm expects to have deployed more than half of its original $500M in starting capital by end of year and has another $1 billion fund available.
Dennis & Co. Auto Group completed two dealership sale-leasebacks with Legacy Automotive Capital this year to quickly free up millions of dollars in funding for the growing group to use to aid future acquisitions.
By not sitting on the stores’ real estate, “we’re able to focus on our primary business: car dealerships and selling cars,” CEO Brian Dennis told Automotive News. “The ability to sell these properties and become a tenant rather than a landholder has freed up capital to continue our growth.”
A typical sale-leaseback involves a dealer selling the dealership real estate and the buyer immediately leasing the property back to the dealer.