Fast5xpress Car Wash, a rapidly expanding express carwash chain in Southern California, recently saw one of its prime locations in Ontario sell for $3.5 million. The newly constructed property, adjacent to the renowned Ontario Mills Mall, was sold in a 35-year absolute triple-net ground lease arrangement. Hanley Investment Group Real Estate Advisors, representing the seller and developer Evergreen Development, brokered the deal.
Fast5Xpress Car Wash Sale Highlights Strong Investment
The sale underscores the attractiveness of the express carwash industry as a net-lease investment. The buyer, a private investor from Orange County, California, recognized the long-term value proposition offered by the property’s strategic location and the strong performance of Fast5Xpress.
Key factors contributing to the successful sale include:
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Prime Location: Situated next to Ontario Mills Mall, one of California’s top shopping and tourist destinations, the property benefits from high traffic and visibility. It’s strategically positioned at a signalized intersection with direct access to major thoroughfares like Interstate 10 and Milliken Avenue. The mall itself draws approximately 28 million visitors annually.
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Long-Term Lease: The 35-year absolute triple-net lease provides the buyer with stable, long-term income and minimal landlord responsibilities.
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Strong Tenant: Fast5Xpress Car Wash is a leading express carwash brand in Southern California, boasting 20 operational locations and two more under development. Their subscription-based model ensures consistent revenue and fosters customer loyalty. The Ontario location, built in 2021, occupies a 4,446-square-foot building on a 1.17-acre lot.
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Thriving Car Wash Industry: The carwash industry is experiencing robust growth, projected to reach $23.78 billion by 2030. Factors driving this growth include increasing car ownership, the popularity of the express carwash model, and the rise of subscription services. High profit margins, typically between 50% to 60%, make express carwashes particularly attractive to investors.
Express Car Washes: A Resilient Investment in 2023 and Beyond
Hanley Investment Group’s success in selling 67 express carwashes in recent years further validates the sector’s strength. The firm currently has several more carwash properties in escrow or on the market, highlighting the continued investor demand for this asset class.
The Fast5Xpress Car Wash sale exemplifies the enduring appeal of well-located, service-based businesses in the net-lease market. The express carwash industry’s resilience to internet disruption, coupled with favorable demographic trends and strong profit margins, positions it for continued growth and investor interest. The Ontario location’s proximity to a major airport and entertainment venue further enhances its long-term potential. This transaction reinforces the value proposition of express carwashes as a compelling investment opportunity. The carwash industry, being largely service-based, offers resistance to online competition, further solidifying its appeal to investors. With the growth in car ownership and the convenience of express models, the industry is poised for continued expansion.
