Valuation of self serve carwash

[Dirtgirl47]

I am trying to determine what my California 8 bay SS carwash is valued at. I have 12 vacs, 2 bill changers, 5 vendors. High traffic area, good visibility. Average annual gross is 220k. Lease is 2500.00 monthly. The structures are very aged and in extreme need of structural and cosmetic upgrading.

 

[Roz]

I am trying to determine what my California 8 bay SS carwash is valued at. I have 12 vacs, 2 bill changers, 5 vendors. High traffic area, good visibility. Average annual gross is 220k. Lease is 2500.00 monthly. The structures are very aged and in extreme need of structural and cosmetic upgrading.

If the landlord is not fixing the building then no one will seriously look at at the place or they will lowball an offer (significantly). Get the landlord to fix the place or you will be hard pressed to sell for 1x NOI especially with visible structural issues. You will have a challenging time regardless since the place does not include the real estate but you can mitigate that issue a little if you have a long term lease that defines the rent for 10-20 years. If equipment is old or tired then probably 2x NOI, if in excellent shape then you probably can obtain 3x NOI. Your revenue numbers ($2300/mo/bay) are solid for a SS location so that is in your favor. Good luck!

 

[soonermajic]

Ask Robert Roman. He is the best

 

[sjb]

The lease terms will be the most important in allowing you to have something to sell… as the landlord controls the deal.

can you elaborate on the lease terms, tenure and the landlords agenda…?

Also, what are you netting on $220k minus $30k in rent in CA….?