Hanley Investment Group is organizing a pre-sale of a new construction car wash

VALENCIA, CA — Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and consulting firm specializing in retail real estate sales, announced in a press release that the firm has arranged the pre-sale of a new BLISS car wash in Valencia, CA.

The sale price was $3.72 million for the absolute triple net ground rent.

This is Hanley Investment Group’s 68th car wash sale in the last 36 months and marks Hanley Investment Group’s fourth sale of properties in this complex, now totaling $13.84 million.

Bill Asher and Jeff Lefko, executive vice presidents of Hanley Investment Group, represented the developer and seller, Fountainhead Development of Newport Beach, California.

The buyer, a private investor based in Los Angeles, was represented by Jenny Eng at CBRE in Glendale, California.

“We sourced 1,031 stock buyers through industry relationships and successfully closed escrow executing a pre-sale marketing strategy,” Asher said. “We structured a short due diligence period and closed escrow for seven days before construction was complete and before the tenant began operating. BLISS was officially paying rent at closing.”

Asher noted, “This sale represents the first BLISS car wash to be traded as a rental investment.”

“The car wash business, which is service-based and Internet resilient, is a more than $15 billion industry, growing at 3.2 percent per year,” Asher added. “Advances in technology, including the introduction of mobile apps, on-demand services and subscription packages, have increased efficiency and convenience and greatly increased the demand for express car washes.”

The new 2023 BLISS car wash is located in the southwest quadrant of the high-traffic signalized intersection of Copper Hill Drive and Rio Norte Drive (36,000 cars per day).

The 4,263-square-foot building, which sits on 1.26 acres, is scheduled to open in the first quarter of 2024.

BLISS Car Wash currently has 10 locations in operation and seven more will be opening soon in Southern California, including the Valencia location.

“BLISS Car Wash has signed a new long-term absolute lease on the triple net land,” Asher noted. “The Southern California-based chain of self-serve, fully automated car washes is one of the top 100 conveyor car washes nationwide, according to Commercial Plus (2022). The founder of BLISS Car Wash, David Delrahim, has 30 years of experience in the industry and established the chain in 2019.”

BLISS’ state-of-the-art water reclamation systems play a key role, enabling the chain to reclaim and reuse a remarkable 70% of the water used by the car wash, according to the release.

While a traditional car wash can use up to 80 gallons of fresh water per wash, and a home car wash can waste up to 100 gallons, the BLISS Car Wash excels at using less than 24 gallons. BLISS’ Smart Meter technology further enhances their conservation efforts, enabling real-time monitoring of water consumption and facilitating efficient consumption management.

“Through biodegradable products, water reclamation, energy efficient equipment and a commitment to responsible environmental practices, BLISS Car Wash is a leader in the car wash industry,” said Asher.

“Express car washes are some of the most profitable tenants in the net lease sector and therefore we expect this segment to continue to experience robust investor demand,” continued Asher. “With margins between 50% and 60%, the average location can be very profitable and withstand potential future economic challenges. In certain markets, top-performing car washes are filling vacant lots, former store buildings and junior pit spaces and becoming something of a mall anchor. These car washes can bring tens of thousands of cars to the malls annually. Based on the recent growth of multiple car wash operators, we expect a significant increase in single tenant car wash properties for sale over the next six to 12 months.”

Valencia is one of the fastest growing communities in the region. There are 152,959 residents within a five-mile radius and a median household income of $168,118 within a one-mile radius of the car wash location.

Hanley Investment Group previously sold two new single-tenant ground lease sites, one leased to El Pollo Loco Drive-Thru and the other to Circle K in addition to a new single-tenant net lease investment Havana Savannah Coffee Drive- Thru , within the same complex at the intersection of Copper Hill Drive and Rio Norte Drive.

All three properties were sold to three separate private buyers at record low prices.

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