Hanley Investment Group has arranged the pre-sale of a triple-net ground lease for a new BLISS Car Wash in Valencia, California for US $3.72 million.
Group EVPs Bill Asher and Jeff Lefko represented the developer and seller, Fountainhead Development of Newport Beach, California.
The buyer, a Los Angeles-based private investor, was represented by Jenny Eng from CBRE in Glendale, California.
Asher says: “We structured a short due-diligence period and closed escrow in seven days, prior to the completion of construction and before the tenant opened for business.
BLISS was formally paying rent at closing.
“The car wash business, which is service-based and internet-resistant, is worth over US $15 billion and growing at 3.2 per cent annually. Advances in technology, including the introduction of mobile apps, on-demand services, and subscription packages, have increased efficiency and convenience, and have substantially increased the demand for express car washing.
“With margins of between 50 and 60 per cent, the average location can be very profitable and withstand potential future economic challenges.
Express car washes are already one of the most profitable tenants in the net-lease sector and we therefore expect the segment to continue to experience steady demand from investors.
"In certain markets, top-performing car washes have been backfilling vacant pads, former shop buildings and junior box spaces and are becoming quasi ‘anchors’ to a shopping center."
Built this year, the car wash is located at the southwest quadrant of the signalized intersection of Copper Hill Drive and Rio Norte Drive which is used by 36,000 cars every day.
The 4,263-square-foot building on 1.26 acres is scheduled to open in the first quarter of 2024.
BLISS Car Wash currently operates 10 locations with another seven expected to open in southern California, including the Valencia site.
BLISS' cutting-edge water reclamation systems play a pivotal role, enabling the chain to reclaim and reuse a remarkable 70 per cent of water used by its operations at a time when traditional car washes typically utilise up to 80 gallons of fresh water per wash and cars washed at home, up to 100 gallons.
Valencia is one of the fastest-growing communities in the region with a population of 152,959 residents within a five-mile radius and an average household income of US $168,118 within a one-mile radius of the car wash site.
