Commercial Property Investments & Developments

Mike Scarff Subaru
of Auburn



Property Investment

M&M Ventures purchased this Auburn Dealership property from Roger Vermazen and leased the site to related tenant Mike Scarff Motors. After the purchase, substantial investments were made to upgrade the building's interior and exterior to comply with Subaru of America facility standards. The property and the Subaru franchise was subsequently sold to Greg Rairdon Motors in 2017.

  • Address: 3025 Auburn Way N Auburn, WA 98002
  • Single Tenant: Mike Scarff Motors, LLC
  • Date acquired: 12/26/2012
  • Date sold: 8/14/2017
  • Acquisition price: $3,800,000
  • Selling price: $6,000,000
  • Capital investment (M&M Ventures): $1,140,000
  • Profit (less closing costs of $120,000): $2,080,000
  • Internal rate of return (IRR - Unlevered): 9.9%

 

Carco

Used Car Superstore

of Renton


Property Development

Carco was a new venture by Mike Scarff into the Used Car Superstore concept originally introduced in the late 1990s by Wayne Huizenga, who founded AutoNation and Waste Management. The Carco Dealership was a ground up development in Renton at the I-405 and 167 Freeway interchange where Brotherton Cadillac, Sound Ford and Good Chevrolet are currently located. In the late 1990s, the City of Renton was offering various incentives to encourage auto dealers to locate at this prime freeway location. In 1996 M&M Ventures acquired and leased various residential and vacant parcels at this Renton site to assemble a 5 acre site and proceeded to construct a 30,000sf split block dealership facility which opened in 1998. The overhead from this large site proved to be too much for the used car dealership operation and the business was closed in 2000. M&M Ventures leased the site to Brotherton Cadillac and ultimately sold the property to an investor in 2004 at a profit. Significant land development and contruction experience was gained from this ground up venture in Renton, WA.
  • Address: 215 SW 12th Street, Renton, WA 98057
  • Single Tenant: Carco
  • Date acquired: 4/1/1998
  • Date sold: East Parcel on 9/1/2000 for $829,235 & remaining property on 4/4/2004 for $4,616,816
  • Acquisition price (M&M Ventures): $4,481,119
  • Sales price: $5,446,051
  • Profit: $964,932
  • Internal rate of return (IRR - Unlevered): 3.7%

Bowen Scarff Ford Satellite


Dealership Development

This was another ground up Dealership development on a vacant parcel in Covington managed by Mike Scarff in the early 2000s. This site was not owned by M&M Ventures. Instead, Mike assisted the Scarff family in developing this site as a satellite dealership location for Bowen Scarff Ford of Kent. This site was previously owned by a junk yard and presented numerous envirnmental, zoning, construction and financing challenges to be overcome. This was was another good experience in commercial land development and ground up building construction.

 

  • Address: 27222 Covington Way SE Covington, WA 98042
  • Single Tenant: Bowen Scarff Ford Sales
  • Date acquired: 2003
  • Date sold: Current Holding of Kristu LLC
  • Acquisition price: TBD
  • Estimated market value (based on budgeted capitalized earnings): TBD
  • Capital investment (Owned by KrisStu LLC, Siblings): N/A
  • Potential profit (based on estimated market value less 5% selling costs): TBD
  • Potential internal rate of return (IRR): TBD