What would you do?

[Cool Wash]

Hope you can provide me some insights and suggestions. A 2 bay SS and 1 automatic car wash came to my attention. it was built from ground up in 2018. The operator has given up and the property is now owned by bank. However, there is NO equipment. The utilities lines seem to be okay. Of course, no financial or previous performance history available.

The bank is asking 500k and county appraisal value is 446k.

This wash is about 3 miles from my SS wash. I think my attendant can service this one as well. I do not have experience with automatic.

it is on a 2 lanes (each way) street. The speed limit is 40 mph.

Traffic count 16,000

Population in 1 mile 11k and 75k in 3 mile. HH income over 60k.


There is no Express wash in 5 miles but one 2 bay touch free (very old laser wash)and another 7 bay SS that is located behind a strip center within 2 miles.

My concern is that it is not near any destination location like grocery or strip center. It is adjacent to a small gas station.


is this a viable project? How much will it cost to install 2 SS and an automatic? Would you go for Touch free or friction? Will touch free be a good strategy to minimize Express impact that may come in the future?


I appreciate your help!

Thank you

 

[Bigmatthew86]

I don’t know where you’re located but that seems like a lot for nothing really. Just throwing an uneducated number out seems like it could easily cost you another 200k to get an automatic & equipment for the 2 bays. I’m sure it could be done for less but around here decent running ones go for what they’re asking.

 

[Greg Pack]

Sounds too pricey. You could easily spend 300K on a reload of equipment. Ask yourself how much would you pay for a ground up 2/1in a secondary or tertiary site? It's not going to be anywhere near the sum of asking price and equipment reload.

 

[OurTown]

Around here $500k would be a reasonable asking price and there's no way you could build it for that amount. $500k doesn't go very far at all these days. Agree with Greg that you would put at least $300k in equipment depending on what you spec out. What size is the auto bay? Hopefully they built it really long. Did it have equipment installed in it and then was torn out or just never got that far?

 

[Burky]

I built a 4ss and 1 IBA in 2018. With all the permitting, paperwork, and land development in todays market 500 is pretty good. My traffic count is comparable and no other shopping destinations nearby and I am happy with my results.

 

[Cool Wash]

Thank you all for your thoughts. I was on fence before and now you helped to make the right call.

 

[soonermajic]

Offer the bank $300k, & see how close they'd go.