NEWPORT BEACH, Calif. — RealSource Group, a national commercial real estate brokerage company focused on retail, healthcare, automotive and education properties, announced in a press release the pre-sale of a new construction, single-tenant net-lease investment occupied by Mach-1 Express Car Wash.
Mach-1 is located at a new Publix grocery-anchored shopping center in Huntsville, Alabama. The sale price was $4.3 million.
RealSource’s Senior Vice President of Investment Sales Austin Blodgett, in association with ParaSell Inc., represented the seller, a private developer based in Tampa, Florida, and the buyer, a 1031 exchange private investor based in Riverside, California, in the off-market transaction.
Mach-1 Express Wash is a family-owned and operated business with over 15 years of experience in the express carwash industry with 11 sites opening or coming soon located across the U.S. in Alabama, Delaware, Georgia, Mississippi, New Jersey, North Carolina and Ohio.
The new single-tenant, 4,000-square-foot Mach-1 Express Wash was built on 0.91 acres at 1624 Old Monrovia Rd. at the signalized intersection of Old Monrovia Rd. and Johns Rd.
This intersection sees 31,660 cars per day, the press release stated.
The Huntsville metro area has approximately 500,000 people, making it the largest city in Alabama.
“We were working with the developer, a preferred developer of Mach-1 Express Car Wash, to pre-sell the single-tenant carwash real estate while at the same time representing a California-based 1031 exchange buyer who was familiar with express carwash net-lease deals,” said Blodgett. “The carwash’s high-identity location at the Publix-anchored shopping center, the strong demographics and traffic count, limited direct carwash competition and Mach-1’s absolute triple-net long-term lease were all very appealing to the buyer. As a result, we structured a mutually beneficial closing for both parties just weeks after the carwash opened for business.”
The Property is near the US Highway 72’s retail corridor, which is lined with national and regional retailers and situated just north of Cottages at Old Monrovia, a 25-acre housing development.
Within five miles of the shopping center, there are over 112,000 people with an average household income of $82,000.
Thus far in 2022, RealSource Group has completed the sale of 11 single-tenant net-leased carwashes valued at more than $55 million located in the Midwest and Southeastern states.
“We expect that the demand for new single-tenant net-lease carwashes will continue to be strong in 2022,” said Blodgett. “There is currently little on the market that can compare to the return on a brand-new construction express carwash with a new 20-year triple-net lease with a corporate guarantee and annual increases. Also, accelerated depreciation is always a driver for investors to purchase these sites, giving them tremendous tax advantages over other retail asset types.”