250 Morris Street — Automotive Property Lease to Caliber Collision

The Challenge

For decades the owner had run an auto repair and collision shop at 250 Morris Street. Ready to retire, his plan was to close the business, sell the furniture, fixtures and equipment, and list the property.

Sonoma County commercial values were rising fast and buyer demand was strong, so a sale looked like the obvious path. The owner wanted to know whether leasing could produce a stronger long-term outcome.

The property carried attributes that created opportunity but needed careful evaluation:

• Existing automotive and collision-repair infrastructure
• Operational business permits and licenses tied to the use
• Installed equipment and specialized facility improvements
• A location suited to automotive service operations

The question was whether to sell into a hot market, or lease to a qualified operator who could use the existing improvements immediately.

The Action

We recommended marketing the property for sale and for lease at the same time — testing the market in real time and creating competitive pressure between buyers and tenants.

The response was immediate: investors and owner-users, including an all-cash offer at full asking price with a quick close. The lease marketing, meanwhile, reached automotive operators expanding in Sonoma County — among them Caliber Collision, one of the largest collision-repair operators in the country, for whom the zoning, permits, equipment and layout made this a rare turnkey location.

Caliber Collision's proposal:

• A 10-year lease term
• A triple-net structure with no landlord responsibilities
• Competitive rent supported by the specialized automotive improvements already in place

Because of the turnkey facility and the tenant's credit, the lease supported a lower cap rate than typical local industrial assets.

The Result

The owner concluded that leasing to a national operator created more long-term value than an outright sale.

The final transaction delivered:

• A 10-year NNN lease with Caliber Collision
• Zero landlord maintenance or operational responsibilities
• Stable long-term passive income supported by a national tenant

With the lease rate and tenant credit supporting a lower capitalization rate, the property's investment value exceeded the original sale listing price. The owner also captured value for the business infrastructure — permits, improvements and staff continuity — and now holds a passive asset that funds his retirement.