Use Cases for our Capital: Refinance Alternative

Use Cases for our Capital: Refinance Alternative

Dealers may stay in their real estate for generations, but their loans do not. The average commercial property loan is 5-7 years. Every 5-7 years a car dealer is facing current interest rates and LTV’s.

Example Scenario:

  • Dealer has 3% property loan expiring at an underappraised $20 Mil valuation.
  • Dealer is facing a refinance at 70% LTV with a 7.5% interest rate.
  • Dealer has $6 Mil + in trapped equity and a significantly higher mortgage cost.

Solution:

  • Legacy acquires the real estate at or above $20 Mil valuation
  • Dealer has zero trapped equity and can gain proceeds at Settlement
  • Dealer converts the mortgage to rent and lowers their monthly cost

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

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Succession Planning

Succession Planning

Succession planning is crucial for car dealers, but accessing capital without disrupting operations can be challenging. A sale leaseback strategy unlocks real estate equity, providing liquidity to fund ownership transitions while retaining control of the dealership.

This approach ensures a smooth succession, preserves working capital, and offers financial flexibility without restrictive covenants. In today’s high-cost market, leveraging real estate assets can be a game-changer for securing your dealership’s future.

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Tesla’s Use of SLB Capital

Tesla's Use of SLB Capital

Tesla has the fastest growing retail footprint among automotive retails nationwide with 237 stores and showrooms nationwide, 192 of which are stand alone service centers.

Tesla’s growth has been fueled by a focus on where they see the highest return on capital: operating an automotive business, not owning real estate.

Tesla’s continue embrace of the sale-leaseback and preferred developer program for their real estate has allowed them to accelerate their growth while maintaining a higher cash balance.

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Benefits of Sale Leaseback Strategy

Benefits of Sale Leaseback Strategy

Franchised new car dealers prioritize business operations but overlook the importance of a dealership real estate strategy. In today’s high-cost buy/sell market, Sale Leaseback Strategies offer a smart way to boost financial flexibility and fuel growth.

  • 100% + Financing
  • $0 Equity Required
  • Rates competitive or lower than market interest rates

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Real Estate Blue Sky – The Hidden Value For Dealers

Real Estate Blue Sky

The Hidden Value For Dealers

‘Real Estate Blue Sky’ is a term coined by Legacy Automotive Capital (LAC) to describe the intangible value that a New Car dealership property holds in addition to its physical attributes or based on the comparable sales of similar properties typically used in the appraisal process. New Car dealership properties are unique in that the true value of the real estate comes from various sources beyond the physical appraisal such as the “Shadow Credit” of the Brand, the value of the “goodwill”, and the pedigree/financial stability of the operator. These factors are widely ignored by the broader marketplace in Buy/Sell transactions resulting in New Car dealership real estate trading on average for far less than it is worth.

This hidden value that many dealers are leaving on the table today is what Legacy calls Real Estate Blue Sky.

In a Buy/Sell or a sale leaseback transaction the rental income that is paid by New Car dealers is often discounted or undervalued because of the arm’s length relationship that exists between the Operating company (The Dealer – OP Co) and the real estate entity (Prop Co) to which rent is paid. Legacy believes that this tenancy should be valued as is the custom in all other commercial real estate verticals. Furthermore, dealership tenancy is “sticky”, long-term and “no-touch” and in no way should be discounted or undervalued. In fact, Legacy believes that New Car dealer tenancy is buoyed by the franchise system, the backing of the OEMs, the adherence to brand standards and oversight of the captives and is some of the most valuable tenancy available in any marketplace.

This is why no one pays more than Legacy does for New Car Dealership real estate.

LEGACY AUTO CAPITAL + REAL ESTATE BLUE SKY = MAXIMUM VALUE FOR NEW CAR DEALERSHIP REAL ESTATE.

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

5 Reasons Why Dealer Real Estate Valuations are Flawed

5 Reasons Why Dealer Real Estate Valuations are Flawed

Dealers can unlock trapped equity with Legacy Automotive Capital’s specialty financing programs, providing them access to funds to use for growth, renovation, or expansion.

Differing valuation perspectives by their Appraisers

1) Income Approach vs. Owner-Occupant Valuation:

  • Appraisers focus on property use value, de-emphasizing rental income
  • LAC values properties based on rental income and return on investment

2) Appraisers Incorrectly Compare Property Types:

  • Ex: Appraisers often compare Toyota properties to Nissan, Used Car, Carvana properties
  • LAC values properties appropriate

3) New Car Volume

  • Appraisers Ignore New Car Volume
  • LAC Highly Values new car volume

4) Brand Value

  • Appraisers do not understand brand value
  • LAC takes into account brand ranking/status

5) Image Compliance

  • Appraisers rarely understand if a property is newly imaged or in need of image redevelopment
  • LAC values image status appropriately

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Q1 2025 Update

Q1 2025 Update at Legacy

Despite challenging capital markets for both debt and equity, Legacy Automotive Capital continues to expand into new states in 2025. With buy sell capital and construction debt becoming harder to secure, our net lease and construction capital programs are proving more valuable than ever for developers and operators.

We’re proud to announce the successful closing of our first new construction project, a testament to our team’s dedication and our commitment to supporting growth in this challenging environment.

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Acquisition Announcement: Two AutoNation Properties in Arizona

Acquisition Announcement: Two AutoNation Properties in Arizona

Legacy Automotive Capital (LEGACY) is pleased to announce two AutoNation acquisitions – AutoNation Honda Property of Chandler, Arizona and AutoNation Hyundai Property of Tempe, Arizona.

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today

Acquisition – South Austin Nissan

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Acquisition – South Austin Nissan

[/vc_column_text][vc_column_text]Legacy Automotive Capital (LEGACY) is pleased to announce the successful acquisition of South Austin Nissan in partnership with IDEA Auto Group (IDEA).[/vc_column_text][vc_column_text]Legacy worked directly with IDEA, a Top 150 Dealer group, and its CEO Julie Herrera on this transaction. Legacy structured the purchase of the real estate so as to provide IDEA with a portion of the Blue Sky funding, thus allowing IDEA to enter the deal with no debt.[/vc_column_text][vc_column_text]Read the full article on Automotive News here.
[/vc_column_text][vc_single_image image=”32006″ img_size=”full”][vc_empty_space height=”20px”][/vc_column][vc_column width=”1/4″][vc_single_image image=”32001″ img_size=”large”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Contact Todd Marcelle at todd@legacyautocapital.com to receive a free assessment of your real estate.[/vc_column_text][/vc_column][/vc_row]

Acquisition Testimonial

[vc_row][vc_column][vc_column_text]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.[/vc_column_text][vc_row_inner css=”.vc_custom_1690142877182{padding-top: 25px !important;padding-right: 25px !important;padding-bottom: 25px !important;padding-left: 25px !important;background-color: #d8d8d8 !important;}”][vc_column_inner width=”3/4″][vc_column_text]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”.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][mpc_image image=”31878″ image_opacity=”100″ image_inner_border_gap=”0″ effect=”none” image_hover_opacity=”100″][vc_column_text]

Brian Dennis

[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space height=”25px”][vc_column_text]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.”[/vc_column_text][vc_empty_space height=”25px”][vc_row_inner][vc_column_inner width=”1/2″][mpc_image image=”31887″ image_opacity=”100″ image_inner_border_gap=”0″ effect=”none” image_hover_opacity=”100″][/vc_column_inner][vc_column_inner width=”1/2″ css=”.vc_custom_1690143054324{padding-top: 25px !important;padding-right: 25px !important;padding-bottom: 5px !important;padding-left: 25px !important;background-color: #d8d8d8 !important;}”][vc_column_text]Real Estate Blue Sky: The hidden value dealers have in their real estate in excess of appraised value.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]