What's my SS Car Wash worth?

[CarWashBoy]

Hi.. I have a offer to sell my Pristine 6-Bay Wash..It's on a busy street.. traffic count 30-35K cars per day.. across from Wal-Mart and many tag on stores.. property comps have been going 25$ per sq ft.. I have 35k sq ft with 120 feet of frontage.. gross revenue last year $254, 000 without any in Bay Automatics.. i have no in bay Automatics. 9 Vacuums and 6 bays.. my place I consider SPOTLESS.. no leaks or drips.. Air Dryers.. complete package.. all up to to date..

I would appreciate any input of what I should sell this place for.. what would you sell it for? ..

Thanks in Advance..
Doug..

 

[vinh]

Why would you sell? You wash looks like it is doing good. Convert you 6 bay to an express wash otherwise that guy that is try to look at your numbers will build express near you. Don't fall for it. Call Sonny Monday and get you a good contractor. You can thank me later.

I think nowadays with express competition, self-serve can only worth max 3 times gross. That guy looking to buy should not pay more than $750K for your wash otherwise he can have trouble paying his note, especially if competition comes knocking .

 

[robert roman]

Generally speaking, it’s not normal to find a self-serve wash with sales of about twice the benchmark located where the property values are more consistent with full or flex-serve carwash.

Likewise, it’s not normal to find a Wal-Mart store located on $25 per SF property unless it’s a neighborhood store in a tony area.

As one commenter alluded to, highest and best use analysis seems in order rather than opinion of value.

 

[BBE]

Why would you sell? You wash looks like it is doing good. Convert you 6 bay to an express wash otherwise that guy that is try to look at your numbers will build express near you. Don't fall for it. Call Sonny Monday and get you a good contractor. You can thank me later.

This was my thoughts as well. With traffic count and numbers like that, convert one of those bays into an IBA or mini tunnel. Then if you still want to sell in 5 years, you've probably just doubled your asking price.

 

[CarWashBoy]

Hi.. Selling because i'm moving and retiring.. LOL I would say 3 times the Gross is about right for a run down wash that needs to be remodeled... LOL.. A friend of mine just sold his for 6 times gross.. It was a Beautiful facility though..

 

[CarWashBoy]

Why would you sell? You wash looks like it is doing good. Convert you 6 bay to an express wash otherwise that guy that is try to look at your numbers will build express near you. Don't fall for it. Call Sonny Monday and get you a good contractor. You can thank me later.

I think nowadays with express competition, self-serve can only worth max 3 times gross. That guy looking to buy should not pay more than $750K for your wash otherwise he can have trouble paying his note, especially if competition comes knocking .

Sheesh. the Property alone is worth that.. LOL

 

[DiamondWash]

Have any Pictures?

 

[getnbusy]

Is the buyer buying your car wash or buying your land ? or both ? I mean if you are selling your wash, the price will be dictated by the cap rate the investor wishes to use. If selling your land, the comps nearby will dictate the price. I say put in a double automatic and get the income up and sell in 5 years

 

[robert roman]

35,000 SF / 120’ frontage = 291’ property length
2,350 SF building and used wand-bay stuff worth $0.10 to $0.15 on the dollar
$254,000 = $152,400 gross net
Wal-Mart across street
Land $25 per SF

If all of the above is true, it suggests this wash was built with hope the value of land would increase in the future and raise the property to higher and better use.

For example, at $25 per SF, locating a 6-bay on this site would waste $500,000 in real estate value alone not to mention significant income potential.

 

[Earl Weiss]

Maybe you want to rent it with option to buy.

 

[Greg Pack]

Hi.. Selling because i'm moving and retiring.. LOL I would say 3 times the Gross is about right for a run down wash that needs to be remodeled... LOL.. A friend of mine just sold his for 6 times gross.. It was a Beautiful facility though..

The days of 6x gross for SSs went away here about ten years ago. An operator may pay a premium for the wash if the land is so valuable, but 6x gross is more of a real estate play that a car wash income play. And all it takes is one express in the market to ruin that plan

 

[kentadel]

Is your wash between the vet hospital and the florist and across from gamestop?

 

[mac]

Good comments here on this, and congrats to you car wash boy. I especially got a kick out of vinh posting about all the good Sonnys is doing to convert the world to express exterior. I have lived and worked in FL for about 25 years now, and I've had the pleasure of meeting some fine wash operators. These are people I trust. I have been told by more than one that they were approached by a Sonnys rep to do a conversion. They were told that if they didn't, "someone" would put up a sign on a nearby parcel with the announcement of , you guessed it, a new express exterior wash with free vacs coming soon. There are at least four of these signs within 20 miles of my shop. And this is an area where there are already more tunnels than can be supported. None of them, if they get built, will ever do really good in a crowded market. Yes, you should buy vinh a nice dinner at RuthsChrist and a couple of cocktails.