COBBLESTONE CAR WASH | $5,995,935 | 6.15% CAP
This investment opportunity offers a solid foundation for long-term stability, featuring a 20-year absolute triple net (NNN) sale-leaseback structure. The corporate guaranty from Spotless Brands, LLC, covering over 160 units, enhances the investment's security. The lease terms include 1.50% annual rental increases and the potential for a 40-year lease with four five-year tenant renewal options. Significant tax advantages are also available through accelerated and bonus depreciation, with properties qualifying for both 80% bonus depreciation and 15-year accelerated depreciation.
The location is strategically positioned in a dense retail corridor featuring well-known brands such as Taco Bell, KFC, Jack In The Box, Burger King, Carl’s Jr., Starbucks, Little Caesars, Dollar Tree, and more. The surrounding community is affluent, boasting an average household income exceeding $103,300 within a one-mile radius and strong demographics of over 107,600 individuals within a five-mile radius. The property benefits from robust traffic counts, with over 12,700 and 31,600 vehicles per day along South Cotton Lane and Estrella Parkway, respectively. The academic presence is notable, with Desert Edge High School and Basis Goodyear Primary School located within a three-mile radius, collectively enrolling over 2,500 students.
The property serves as an outparcel to Canyon Trails Towne Center, hosting over 40 retail tenants, adding to its appeal. The tenant, Spotless Brands, founded in 2019, is a rapidly growing and major player in the car wash industry. Operating over 160 car washes across the country in partnership with four industry-leading brands – Cobblestone Auto Spa, Okie Express Auto Wash, Flagship Carwash, and Ultimate Shine Car Wash – Spotless Brands is recognized for its innovative approach. Cobblestone, in particular, holds the undisputed leadership position in the car wash industry in both Phoenix, AZ, and Denver, CO. Utilizing state-of-the-art equipment and processes, Cobblestone Car Washes offer best-in-class service, with experienced crews capable of performing a full-service car wash in less than 15-25 minutes. This investment combines a strong lease structure, prime location, and a tenant with a proven track record of success and industry leadership.