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