An OC-based private investor purchased a new construction, single-tenant property occupied by Fast5Xpress Car Wash in Ontario, adjacent to the Ontario Mills Mall, one of the top shopping and tourist destinations in California. The sale price was $3.5 mil for the new 35-year absolute triple-net ground lease.
Built in 2021, Fast5Xpress Car Wash occupies a 4.4k sf building on 1.17 acres at 4392 East Ontario Mills Pkwy. The property is located at the signalized intersection of Ontario Mills Pkwy (16,175 cars per day) and Inland Empire Blvd, and across the street from the Ontario Mills Mall (28 million annual visitors). The property is also near the Interstate 10 Fwy (271,000+ cars per day) and Milliken Ave. Fast5Express is less than two miles from the Ontario International Airport (5.5 million passengers, 2019) and less than half a mile from the Toyota Arena (11,000+ capacity venue).
Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors represented the seller and developer, Evergreen Development. The all-cash, 1031 exchange buyer repped themselves.
Fast5Xpress is one of the largest and fastest-growing express car wash companies in Southern California. The chain currently has 20 locations open and operating, with two more under development.
“The Ontario Mills Mall area is an outstanding regional retail destination pulling consumers from all over the Inland Empire, providing a very strong customer base of people that benefit from a subscription-based express car wash service,” said Asher. “The average household in Ontario owns two or more vehicles with nearly 280,000 people with an average household income of $96,660 reside within a five-mile radius.”
According to Asher, the U.S. car wash services market size is expected to reach $23.78 bil by 2030, expanding at a compound annual growth rate (CAGR) of 5.5%.
Asher notes, “Express car washes are one of the most profitable tenants in the net-lease sector, with margins between 50% to 60%. As a result, we expect this segment will continue to experience steady demand from investors in 2023.”