Hanley Investment Group Facilitates $3.72M Sale of BLISS Car Wash in Valencia
Hanley Investment Group facilitated the $3.72M sale of a new BLISS Car Wash in Valencia, CA, prior to its opening. The property, leased on an absolute triple-net basis, highlights the growing demand for express car washes in net-lease investments.
Strategic Investment in a High-Traffic Retail Corridor
A Los Angeles-based private investor acquired the absolute triple-net ground lease of a newly constructed BLISS Car Wash in Valencia, CA, for $3.72 million. The transaction was completed before construction was finalized and before the tenant officially opened for business. At the time of closing, BLISS was already paying rent, making this a unique pre-opening sale.
The 2023-built BLISS Car Wash is strategically positioned at the southwest quadrant of the signalized intersection of Copper Hill Drive and Rio Norte Drive, a high-traffic location with an average daily traffic count of 36,000 vehicles. The property includes a 4,300-square-foot building on 1.26 acres and is scheduled to open in the first quarter of 2024. BLISS Car Wash currently operates 10 locations across Southern California, with seven more set to open, including the Valencia site.
Industry-Leading Car Wash Operator in a Growing Market
BLISS Car Wash is a fast-growing express car wash chain known for its commitment to eco-friendly operations and water conservation. Unlike traditional car washes that consume up to 80 gallons of fresh water per wash, and home car washes that waste as much as 100 gallons, BLISS Car Wash utilizes a cutting-edge water reclamation system that reuses 70% of the water from each wash, using fewer than 24 gallons per wash. Additionally, BLISS’ proprietary Smart Meter technology allows real-time monitoring of water consumption, ensuring efficient and sustainable operations.
Hanley Investment Group’s Role in the Transaction
Bill Asher and Jeff Lefko of Hanley Investment Group Real Estate Advisors represented the developer and seller, Fountainhead Development of Newport Beach. The buyer, a private investor based in Los Angeles, was represented by Jenny Eng of CBRE in Glendale. According to Asher, this sale represents the first-ever BLISS Car Wash to be traded as a leased investment.
Demand for Express Car Washes in Net-Lease Investments
A Thriving Industry with Strong Investor Interest
“The car wash industry, which is service-based and internet-resistant, represents a $15 billion market growing at an annual rate of 3.2%,” Asher noted. “Advances in technology, including mobile apps, on-demand services, and subscription-based models, have increased efficiency and convenience, leading to rising demand for express car washes.”
Express car washes have proven to be among the most profitable tenants in the net-lease sector. With profit margins between 50% and 60%, these businesses are well-positioned to withstand economic fluctuations and continue attracting investor interest.
The Role of Express Car Washes in Shopping Centers
Express car washes have increasingly become high-traffic anchor tenants in retail centers, backfilling vacant pads and repurposing underutilized retail spaces. “In some markets, top-performing car washes bring tens of thousands of vehicles into shopping centers annually, significantly boosting foot traffic for surrounding businesses,” Asher added.
Future Trends in Single-Tenant Net-Lease Car Wash Properties
“With the recent expansion of numerous car wash operators, we anticipate a significant increase in single-tenant net-lease car wash properties for sale over the next 6 to 12 months,” continued Asher. Investors are increasingly drawn to the stability, profitability, and growth potential of express car washes, especially as demand for service-based and essential businesses remains strong.
Why Investors Are Targeting Net-Lease Car Wash Properties
- Resilient Business Model: Unlike traditional retail, car washes offer subscription-based revenue streams and high customer retention.
- Eco-Friendly Operations: Sustainable car wash models, like BLISS, appeal to environmentally conscious consumers and investors.
- High-Traffic Locations: Positioned along major intersections and high-density retail corridors, car washes generate consistent customer volume.
- Attractive Cap Rates: As one of the most profitable net-lease investment categories, express car washes continue to trade at competitive cap rates.
Conclusion
Hanley Investment Group‘s successful facilitation of the $3.72 million sale of BLISS Car Wash in Valencia underscores the growing investor demand for net-leased express car washes. This transaction, completed before the property opened for business, highlights strong market confidence in the profitability and resilience of service-based retail investments.
As the car wash industry continues to evolve, with technology-driven enhancements, water conservation initiatives, and subscription-based models, net-leased car wash properties are expected to remain a high-demand asset class for investors in the coming years.
Are you interested in learning more? Check out the links below:
- Learn more about Hanley Investment Group
- Explore BLISS Car Wash and its sustainability efforts
- Read about Net-Lease Investment Trends
- Discover insights into Retail Real Estate Market Trends
A Los Angeles-based private investor paid $3.72 mil for the absolute triple-net ground lease of a new BLISS Car Wash in Valencia. The transaction was conducted prior to the completion of construction and before the tenant opened for business. BLISS was formally paying rent at closing.
The new 2023-construction BLISS Car Wash is located at the southwest quadrant of the signalized, high-traffic intersection of Copper Hill Dr and Rio Norte Dr (36,000 cars per day). The 4.3k sf building, which sits on 1.26 acres, is scheduled to open in the first quarter of 2024. BLISS Car Wash presently has 10 locations operating and seven more will be opening soon across southern California, including the Valencia site.