Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

FFCA Provides Approximately $62 Million of Sale/Leaseback Financing to Discount Auto Parts, Inc.

SCOTTSDALE, Ariz. -- Franchise Finance Corporation of America has announced it has provided approximately $62 million in financing to U.S. Realty Advisors, LLC for the acquisition of 101 automotive parts stores sold and leased back by Discount Auto Parts, Inc., one of the Southeast's leading specialty retailers and suppliers of automotive replacement parts, maintenance items and accessories.

Under terms of the proposed transaction, which closed on February 27, 2001, the purchase of the 101 automotive parts stores was financed by USRA's equity investment and FFCA's fixed rate mortgage financing supported by master leases between affiliates of USRA and Discount Auto Parts.

"To help Discount Auto Parts achieve its financial objectives, FFCA formulated a creative financing solution utilizing sale/leaseback financing," stated Stephen G. Schmitz, Executive Vice President and Chief Investment Officer of FFCA. "This allowed Discount Auto Parts the ability to free up capital that had been tied up in corporate real estate ownership. The relationship between FFCA and USRA provides FFCA's clients the opportunity to monetize the value of their real estate assets and thereby put capital into their business operations."

"We were very pleased with USRA and FFCA's ability to complete this transaction on an aggressive timeline and in a difficult market," states C. Michael Moore, Executive Vice President and CFO of Discount Auto Parts. "With the closing of this transaction, the capital needs of Discount Auto Parts should be addressed for the next two to three years."

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?