Gerber Collision & Glass 3319 E Texas St

KW Commercial is pleased to offer for sale two (2) STNL Gerber Collision & Glass locations in the Shreveport-Bossier City, Louisiana Market. The tenant (Gerber) recently replaced the roofing systems at both locations, with both systems having a 20-year warranty that started January 2024.
Gerber is one of five (5) operating subsidiaries of Boyd Group Services, Inc. (BGSI), a publicly traded Canadian corporation with shares that trade on the Toronto Stock Exchange under the symbol BYD.TO. The Boyd Group, in terms of sales and locations, is one of the largest operators of non-franchised collision repair facilities in North America.
On the recent 3Q2023 earnings call, Boyd reported another quarter of explosive growth in sales and revenue, driven by the addition of 78 new locations and an 18.3% increase in same store sales over the first three quarters of 2023. The CEO also confirmed that the company was still on track to double in size by 2025, based on the FY2019 constant currency basis.
Prior to being purchased by Gerber, the Shreveport and Bossier stores operated as CBS Collision, which was one of the largest collision repair businesses in the Shreveport-Bossier market in terms of repair volume and sales. This prominent position in the market made CBS a highly sought-after acquisition target by all of the national collision repair companies.
Based on Boyd/Gerber’s superior strength and size in the collision industry, the owner/operator of CBS selected Gerber out of the multiple bidders for the business, with the transaction closing in March of 2022. Due to Gerber’s entry into the market being an acquisition, Gerber was able to acquire a solid cashflow operation, as well as secure two leases at rental rates that are almost half of the $20.00/SF/Yr NNN rate paid by a national competitor that recently entered the market by primarily constructing new facilities.
Utilizing CBS’ trailing and projected store sales prior to the Gerber purchase, Gerber’s current rent-to-sales ratio is estimated to be between 4.0% and 5.5% for both stores. While the general rule of thumb is roughly a 12.0% ratio, both Gerber stores have significantly higher profit margin potential than most retail sales businesses and/or the ability to absorb potential short-term fluctuations in the local collision repair industry.
With both stores having prime retail locations, as well as substantially low rent-to-sales ratios, an investor has the opportunity to invest in two, high-quality properties leased to a collision industry leader with over twenty-eight years of the combined primary term and four (4) 5-year options. In addition, the leases provide an investor 10% rental increases every five years, including during the option periods.
Additional Gerber Collision & Glass For Sale at 2575 East 70th Street, Shreveport, LA 71105.