CBRE's objective at the onset of the assignment was to achieve the highest-possible price for each asset and secure cost-effective occupancy costs for CARQUEST. The challenge was to attract qualified bidders who had the appetite to accept short term leases on the properties. Thirty-eight percent (38%) of the portfolio contained new 5-year leases, twenty-five percent (25%) were 10-year leases and thirty-seven percent (37%) were 15-year leases. Traditionally, portfolio investors require a minimum of 20-year lease terms. In addition, many of the properties are located in secondary and tertiary markets throughout the US.
To execute the transaction, CBRE Portfolio Services compiled a strategic national team of experienced real estate brokers to underwrite the portfolio. Then CBRE Portfolio Services conducted an aggressive national and international marketing campaign. That campaign highlighted the excellent real estate fundamentals of the properties and General Parts International's dominant position in its industry.