CarMax

Tenant Description

CarMax is dedicated to making the process of buying and selling used cars more accessible, efficient, and reliable for consumers. It is the United States’ largest used-car retailer and a Fortune 500 company. CarMax does not maintain a Standard & Poor’s rating, but has very strong financials.  The company´s slogan “The way car buying should be” says a lot about its business model.

What We Like About CarMax

Unique Niche Market

What To Look For When Buying A CarMax

High Price Points

Competition

CarMax competes against the certified pre-owned used cars offered at traditional franchised used car dealers (i.e. new car dealers selling used cars).

What Is Sold In A CarMax

Used Cars

CarMax Website

https://www.carmax.com/

Corporate Office Location

12800 Tuckahoe Creek Parkway – Richmond, VA 23238

Fast Facts

As of January 2019 CarMax operates 190+ locations in 35+ states. The largest presence is in California, Texas and Washington DC, and Baltimore.

In 2013, CarMax was named one of Fortune’s “100 Best Companies to Work For”

While CarMax stores focus on marketing used vehicles, the company acquired its first new car franchise with Chrysler Corporation in 1996. By 1999, it added new vehicle franchises for Mitsubishi Motors, Toyota, and Nissan as well.

The company´s sales consultants work on fixed commissions, so they make the same amount of money regardless of which car the customer buys. The company wants to ensure that employees don´t have the incentive to push those cars which generate higher margins for the company, and they can focus their time and energy on finding the best vehicle for each customer.

Stock Price
Tenant News
Average Cap Rate Trend
6.75%
2019
6.50%
2020
12 mo avg with 10+ yr lease term (*Data Points Are Rounded Up*)
Average Sale Data & Lease Structure
Avg. Sale Price$15,000,000
Avg. Annual Rental Income$1,000,000
Average Price/SF$625/SF
Typical Lease TypeTriple Net
Typical Lease Term 20 Years
Typical Lease EscalationsNone
Credit Rating
S & PN/A
Moody'sN/A

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