FLAGSHIP CAR WASH
This investment opportunity presents a solid foundation for long-term stability, featuring a 20-year absolute triple net (NNN) sale-leaseback structure with corporate guaranty from Spotless Brands, LLC, covering an impressive 160+ units. The lease terms include 1.50% annual rental increases and the potential for a 40-year lease with four five-year tenant renewal options. The properties also offer significant tax advantages through accelerated and bonus depreciation, qualifying for both 80% bonus depreciation and 15-year accelerated depreciation.
Situated in a vibrant retail corridor, the location boasts well-known establishments such as TJ Maxx, Dollar Tree, CVS, Wawa, Aldi, Target, Macy’s, AutoZone, Taco Bell, and Chick-Fil-A, among others. The surrounding community is affluent, with an average household income exceeding $123,700 within a five-mile radius, and strong demographics of over 100,425 individuals within the same radius. The property benefits from robust traffic counts, with over 49,000 and 17,900 vehicles per day along Crain Highway and Billingsley Road, respectively. The academic presence is notable, with Westlake High School located just two miles away, hosting over 1,200 enrolled students.
Spotless Brands, the tenant, was founded in 2019 with the goal of revolutionizing the car wash industry. As one of the fastest-growing and largest car wash companies in the United States, Spotless Brands operates over 160 car washes in partnership with four industry-leading brands: Cobblestone Auto Spa, Okie Express Auto Wash, Flagship Carwash, and Ultimate Shine Car Wash. Notably, Flagship, operating for over 35 years, holds a dominant position in the DMV market with 34+ locations and plans for continued expansion, aiming to reach 40+ locations in 2024. This investment combines a robust lease structure with a prime location and a tenant with a proven track record and strategic growth plans.