Machine Investment Group Buys 8-Property Jiffy Lube Portfolio
The properties totals 38,360 square feet and are located in the San Francisco Bay Area.
Machine Investment Group has acquired an 8-Property Jiffy Lube portfolio in the San Francisco Bay Area. The portfolio totals 38,360 square feet and it 100% occupied by Jiffy Lube International under triple-net leases.
The purchase illustrated increased investment interest in auto parts, servicing and collision real estate, which are seen as ecommerce resistant. According to Randy Blankstein, president of The Boulder Group, the asset class performed well during the pandemic in 2020, and competition is heating up among collision centers as companies, like Caliber Collision are in expansion mode as they look to steal market share from local operators. Investor interest is driven by the fact that many don’t have a foothold in the auto sector with tenants like Jiffy Lube and Valvoline, companies that are in expansion mode. As a result, investors are increasing exposure to the market.
Machine Investment Group purchased the portfolio in partnership with The Cogent Group, a single-tenant net lease owner. Machine Investment Group launched in July 2020 and focuses on middle market investments. The Jiffy Lube acquisition is the company’s seventh since its inception, including the $208 million recapitalization of a hospitality portfolio located in Hollywood, CA. With the package, sponsor Relevant Group can complete the construction of the two hotels by this summer.
The portfolio, which is under construction, includes the Thompson and tommie branded hotels and event and food and beverage spaces in the Citizen News Building. The $208 million whole loan moves the previous senior mortgage held by Calmwater Capital to a $136 million A-note and incorporates a $72 million B-note originated by Machine. A joint venture sponsored by affiliates of Machine Investment Group and Taconic Capital provided the B-note.