| EXPRESS Exterior Tunnel Carwash makes a BIG SPLASH in Southern California!! |
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| J. R. "Jack" Muellerleile finds EXPRESS Exterior Carwash Sites |
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| Is the EXPRESS Exterior Carwash concept the answer to everybody's search for a high tech, high cash flow, low investment, low employee headcount retail business that delivers a frequently needed service on almost a completely self serve basis? Maybe so. At least all of Jack Muellerleile's carwash and gas station clients think so. While more than 50% of the nation's 22,000+ tunnel carwashes now feature this design, the concept is just starting to be noticed in the Los Angeles Basin. It has created a lot of excitement in Southern California and not a little anxiety for some like the coin-op crew who stand to get clobbered if one of these appears nearby and drains their customer base, which may occur in the not too distant future. Even the high end, full service carwash is losing customers (or some of their wash purchases) to this newest concept because it just can't compete with the "$ 5.00 ~ 5 Minute ~ Free Vacuum" price point that they worry may create a loud sucking sound as it pulls customers off the street...most of whom are coming from the industry's largest untapped market segment...persons who wash their cars on the driveway at home or have no driveway since they reside in apartment buildings or mobile home parks. With well over 60% of the patrons women (many of whom have children in the vehicle), all of the traditional retail factors apply...plus the "PLeasant and Enjoyable Experience" factor becomes just as important as 'visibility' and 'accessibility' especially during those super busy peak volume hours. See the pictures below for a look at one of these well located, well designed, well run, high cash flow operations...and check out the CASH FLOW it is producing.
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Research collected on the AMAZING Southern California rush to the EXPRESS Exterior Carwash concept includes the following:
~ 141% Cash on Cash Return on Investment (ROC)
~ First 30 mos. Actual Washed Car Volume & est. Cash Flow at above El Segundo unit
~ Capital Requirements & How Funded
~ Why do they appeal to customers?
~ How are they financed? Coast Commercial Credit Program Overview
~ Sample Site Plan A Site Plan B Site Plan C
~ Demographics & Site Selection
~ Proforma Data Requirements
~ How to develop one of these
~ See pictures of one of these "cash cows"
A well located, correctly designed and properly managed EXPRESS Exterior Carwash is believed to be capable of reaching its "seasoned" volume within the first year of operation. That "seasoned" volume in the Los Angeles Basin can be 30,000 cars monthly at $6.50 minimum per car. As such, over $2,000,000 in sales can be expected...about 40% of which funds the operating expenses while the other 60% covers the land occupancy costs, debt service (if any) and the owner's bottom line. Cash-on-cash returns may be expected to run 50% to 300% or even higher. That may replace the owner's cash seed money in 2 years or less once the "seasoned" washed cars volume is reached.
The location pictured above is performing at this level. The "El Segundo 5-minute Express Carwash" is located at 125 N. Sepulveda Blvd., El Segundo, CA 90245 just north of El Segundo Blvd. It sits on a 51,400 SF triangular lot having 338’ of frontage on Sepulveda Blvd, 277’ of depth along its northern property line and 439’ along the diagonal lot line comprising its southwesterly border. The traffic count per CALTRANS is 60,000 ADT a/o the year 2005. It was featured as the cover story of Auto Laundry News in August 2006. To read much more about this concept, go to www.carwashmag.com , enter "August 2006" in the archives "search by date" address bar, then scroll down to the feature article entitled "Express Exterior Challenges CA's Hand-Wash Mindset" and click on that link to this article. Or, just click here on Ease of Operation for excerpts from this article (and a link to the entire thing). To learn more about the firm that developed it, click here on About NS Wash Systems .
Jack Muellerleile is a consultant and real estate broker with 40+ years experience in the retail petroleum and carwash industries. Along with casework handled for various petroleum & non-petroleum consulting clients, he finds sites for EXPRESS Exterior Carwash and SUPERSTATION clients. At this writing, over 30 such clients with carwash experience and strong financials have signed Buyer's Agreements guaranteeing him a generous brokerage fee for each of the prized but difficult to locate sites they acquire. Several other clients who are new to this industry are served by Jack as a well paid consultant.
Jack usually has a number such sites in play at any one time. Examples are listed at Jack's Published & Still Available ECW Sites a/o 10.21.09 . To see all the details and be able to personally inspect them, experienced cash liquid folks need to download, print, fill out, sign and date his 1 page EXPRESS Exterior Tunnel Carwash Sites Confidentiality & 10% Buyer's Agreement , then email or fax it to him. Upon its receipt, Jack will contact you. New to the industry folks need to get Jack signed up as a paid consultant to help them quickly climb the 'learning curve', get properly connected with the folks that count and confirm or deny their interest in developing one of these facilities; then, if it's a green light, proceed to get to work doing just that. Jack may be reached at:
Tel: 714.220.1806
Fax: 714.826.1143
Cell: 714.865.6494
Email: sitepro1@ca.rr.com ; or
jrm@4VQP.com
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How good are the new-to-industry ECW sites Jack finds??
See the chart below for a sampling of the kind of new-to-industry ECW sites Jack is finding for his clients. While the national credit crisis exists and the economy is still in recession...extremely attractive, high volume ECW sites are within the grasp of every client, not just the big national credit tenants like Walgreens, CVS, National Banks and Nationally Branded Quick Service Restaurants. Now is the very best time to grab one or more of these sites since they won't remain available after the economy recovers; and the EXPRESS Exterior Tunnel Carwash concept thrives during recessionary times.
Jack's
Site # |
Size in
Sq. Ft. |
Traffic
Count |
Land Lease
or Purchase |
Estimated
Cash
Required |
Estimated
Net Cash Flow |
Estimated
Cash-on-Cash
Return
(ROC) |
Link to Full
Exhibit |
| 123 |
40,000 |
79,000 |
Lease |
$391,500 |
$1,173,000 |
300% |
See Exhibit # 1 |
| 131 |
40,000 |
79,000 |
Lease |
$448,500 |
$1,304,000 |
290% |
See Exhibit # 2 |
| 131 |
76,000 |
76,000 |
Lease |
$448,500 |
$1,304,000 |
272% |
See Exhibit # 3 |
| 131 |
76,000 |
79,000 |
Purchase |
$1,948,500 |
$1,048,000 |
53% |
See Exhibit # 4 |
| 135 |
56,000 |
50,000 |
Lease |
$448,500 |
$747,000 |
166% |
See Exhibit # 5 |
| 135 |
56,000 |
50,000 |
Purchase |
$1,198,000 |
$672,000 |
56% |
See Exhibit # 6 |
| 137 |
35,000 |
63,000 |
Lease |
$448,500 |
$763,000 |
170% |
See Exhibit # 7 |
| 137 |
35,000 |
63,000 |
Purchase |
$972,000 |
$971,000 |
100% |
See Exhibit # 8 |
| 138 |
Retrofit
14,000 SF bldg.on
55,800 SF lot |
53,000 |
Lease |
$269,000 |
$763,000 |
248% |
See Exhibit # 9 |
| 140 |
44,000 |
79,000 |
Lease |
$478,500 |
$1,777,000 |
246% |
See Exhibit # 10 |
| 140 |
44,000 |
79,000 |
Purchase |
$1,318,500 |
$1,196,000 |
90% |
See Exhibit # 11 |
3 Sites PRD Strategy
(123 + 131 + 140)
Controls
12 miles
of the heavy traffic blvd.
w/ 3 new units |
See above
3 Sites
#123 - 40K
#131 - 40K
#140 - 44K |
76,000+ |
Lease all 3 sites |
$1,318,500 |
$3,654,529 |
277% |
See above ROC Analysis Exhibits
# 1 + # 2 + # 10
which, when combined, add
up to these numbers. |
HOW IS JACK PAID?
Many web site visitors call Jack asking about this. To explain the various situations he put together an exhibit answering the question and providing examples of compensation as a consultant, as a real estate broker in California, for fee acquisitions and for lease transactions. To look this over, go to HOW IS JACK PAID?
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See what savvy carwash industry professionals have to say about this concept. It was the cover story for the March 2007 edition of Professional Car Care Magazine. Just click here on The EXPRESS Exterior Phenomenon .
"Car Wash" defined: A Google_Answers.com_Wikipedia search result for
"car wash" offers good general descriptions with lots and lots of linked details...but does not provide the above type of coverage for this EXPRESS Exterior Carwash concept.
EXPRESS Exterior Carwash project INVESTMENT CAPITAL: Some developers gather the needed capital by offering "investors" the opportunity to share in the ownership of the new project. After locating and securing control of the site, they prepare descriptive exhibits and "market the opportunity" to likely investor candidates. An example of this may be viewed here by clicking now on Ride The Wave .
08.16.07 Professional Car Care eNews - Boomerang Car Wash opens 6th EXPRESS Tunnel Carwash in Oklahoma City, its 21st overall. For story, go to http://www.carwash.com/news.asp?N_ID=67439 . For a look at all Boomerang's locations, go to http://www.boomerangcarwash.com/ .
03.28.08 Los Angeles Times - Unions join to organize carwash workers. Leaders target 18,000 workers in Southern California. To read this article, click here on United Steelworkers Union (AFL-CIO) take aim at FULL SERVICE Tunnel Carwash workers . This is another reason savvy old timers are seeking sites for the almost 100% computer controlled EXPRESS Exterior Tunnel Carwash concept which requires only 2 employees per shift.
04.02.08 United Steelworkers Union web site - See postings on the subject of unionizing Southern California carwash workers including the union's EXECUTIVE SUMMARY of the situation from its point of view. Click on Unionization of Carwash Workers?
04.04.08 Western Carwash Association (WCA) - The WCA news release intending to offer the public a Fair & Balanced picture of the working conditions in the professional carwashing industry may be looked over by clicking here on Punish the "rogue" carwashers, not the rest .
06.18.08 Los Angeles Times Business Section - UCLA still foresees no recession...but there will be little or no growth in GDP this year or next, Anderson experts say - See this article and Jack's comments at Perfect Economic Times for explosion of the EXPRESS Exterior Tunnel Carwash concept .
06.25.08 Los Angeles Times Business Section - Chapman (University) sees U.S. in recession - See article and Jack's comments at More Reasons Why EXPRESS CW concept is so popular among CW investors .
10.01.08 PC&D Online - TECH TIPS - Setting Up An EXPRESS Detailing Operation
To see the notes taken by Jack Muellerleile during a Carwash Investing Seminar conducted by industry expert Fred Grauer, click on the following links:
~ State of the Industry
~ Petro Sites with Carwash
~ Self-Serve Model
~ In-Bay Rollover Automatic
~ Conveyorized / Tunnel
~ Consumer Washing Habits
~ Adding a NTI Facility
10.14.08 Professional Carwashing & Detailing - Living wage complaint filed by L. A. Carwash workers . This article highlights another reason full service carwash developers / owners / operators are flocking to the EXPRESS Exterior Tunnel Carwash concept.
10.17.08 U.S. National Credit Crisis? Not for Carwash SBA loans. Carwash deals are BOOMING while hotel and other suffering segments are flatlined. See the testimony of a nationwide carwash & gas station SBA loan specialist by clicking here on Carwash SBA loan biz booming!
DECEMBER 2008 - PC & D - Managing an Express Chain
12.01.08 / L. A. Times - Click here for SCAL Carwash workers unionization update
12.08.08 Unionization Efforts in L. A. Still Going Strong - EXPRESS Exterior Tunnel Carwash developers believe ECW concept not vulnerable! Click here for Details & Access to Union Web Site .
12.23.08 Los Angeles Business Journal - State Regulators Crack Down On employers .
02.16.09 Nationally recognized gas price analyst "The Gas Guy" predicts the end of the California "Mom & Pop" gas station is coming soon. Jack Muellerleile sees many of them converted to an EXPRESS Exterior Tunnel Carwash (ECW) and cash flowing far better than before. To check out this scenario, click on the links below:
1. Say Goodbye to the California "Mom & Pop" neighborhood gas station**
2. EXPRESS Exterior TWIN-TUNNEL carwash replaces gas station
3. Cash-on-cash return if built on fee property
4. Cash-on-cash return if built on leased property
**More choices - On 03.30.09, an 80 ft TUNNEL SMALL CORNER OPTION was added to the above TWIN-TUNNEL design solution. To see this design and its Cash-on-Cash Analyses, just click on the links below:
1. EXPRESS Exterior 80 ft TUNNEL OPTION for small 150' x 150' former gas station corner lots
2. Cash-on-cash return if 80 ft TUNNEL OPTION is used on fee property
3. Cash-on-cash return if 80 ft TUNNEL OPTION is used on leased land
**UPDATE - 03.29.09 Pump Pain: Owners hit by pricey upgrade.
**UPDATE - 1000 California Gas Stations Face April 1, 2009 Permanent Closure ...claims the Gas Guy's 03.31.09 Open Letter to California Governor Arnold Schwarzenegger. Why? They are small independents who can not afford the $11,000 per nozzle cost of compliance with the CARB mandate requiring EVR Phase II nozzles and vapor scrubbers to capture another 3% of vapor emissions (increasing capture from 95% to 98%) by that date. Temporary solution? Extend compliance date one year to April 1, 2010.
**UPDATE - 04.12.09 No Happy Days for California Gas Station Owners ..."The Gas Guy" says that according to CARB, its mandate has caused owners of 5% of the state's 11,500 gas stations to already close down the facility; and, by the 12.31.09 absolute drop dead date, about 1,000 are expected to hang up their nozzles and lock their pumps for good. For more details, click on the "No Happy Days" link above.
03.01.09 PC& D Magazine - Fred Grauer says "Become More Efficient"
03.01.09 PC & D Magazine - R. L. "Bud" Abraham, Detailing Editor, explains How to Find and Court an Investor...don't think too small
2009 Winter edition / RCA report - Chief Economist Robert Bach at Grubb & Ellis sees strong investment potential in Top 10 U.S. Markets despite the widespread economic downturn...and Los Angeles leads the list in 3 out of 4 categories. In RETAIL, Los Angeles is # 1, Orange County is # 6 and San Diego is # 9. See all the details at Market Strength Forecast 2009-2013 .
03.26.09 ALL CLIENTS ALERT - SBA Loans are becoming MUCH MORE ATTRACTIVE again .
07.01.09 PC & D Magazine - BE WATER SMART...Reclaim, recycle, manage & treat the water at your carwash. To read the full article, go to http://www.carwash.com/article.asp?IndexID=6637227 .
Comments by Jack Muellerleile: Government water conservation regulations targeting the carwash industry and all consumers where they live, work and play may have a silver lining since they push the largest segment of the carwash industry off their driveways at home and into the commercial
carwash establishments. These new customers will likely head for the in-bay automatics (which are mostly at gas stations), the coin-ops and the EXPRESS Exterior Tunnel Carwash (ECW) units which use the aggressive "$5.00 ~ 5 Minute ~ Free Vacuum" offer to maximize the volume of washed cars. In fact, when enough ECWs are present in the marketplace to neutralize the 'convenience factor' it's expected they will be the dominant beneficiary of this new river of customers since ECWs are able to offer customers the best overall bundle of benefits vs. the In-bay Automatics & Coin-ops, including:
1. Lowest price for the wash & vacuum;
2. Best quality wash;
3. Driest car;
4. Least amount of physical exertion by the customer; and
5. Shortest amount of time on site ("wash only' can be done in 3 minutes).
CONCLUSION: This is yet another reason for savvy carwash investors to concentrate their efforts on developing qualified sites for the EXPRESS Exterior Tunnel Carwash concept and designing the improvements to handle a lot more volume than can be predicted based only upon factors present at the time of the site acquisition.
07.30.09 Federal Way MIrror Reporter - Car wash pollution and the numbers to prove it - Article supplies more evidence that Government Regulations may soon be pushing folks off their driveways at home and into commercial car wash facilities. Go to Home Driveway Carwashing is detrimental to local waterways .
08.11.09 Wall Street Journal - ...U. S. economists say recession is over .
08.14.09 Waived SBA Loan Fees of $53,000 - $83,000 or more my expire by 12.31.09. For details go to Get Your SBA Loan Now .
10.27.09 Los Angeles Times - SBA loans are on the rebound. The number made in the region from April through September rises 50% from first half of U.S. fiscal year. To see the full article, go to Obama seeks to boost SBA loans .
11.02.09 SBA Loans Status Update by CW Specialty SBA Loan Broker Mike Ford - Click here on Good News & Action Needed .
02.02.10 PC&D - EXPRESS Exterior Tunnel Carwash - The Need For Speed .
Many investors who were heavily involved in residential real estate are now contacting Jack Muellerleile asking about the cash on cash returns one may expect in the RETAIL PETROLEUM and CARWASH industries. They are considering the following strategies: 1. Buy a modern, well managed gas station (with land) comprised of fuel sales and a C-Store on a 1/2 acre lot and run it as is. Assuming full market price is paid, the Cash on Cash return will likely be at least that described on this exhibit (some ROCs run as high as 40%): 9.9% ROC @ 2 Profit Center Modern Gas Station . 2. Buy an existing gas station capable of improving its performance by upgrading / adding profit centers, then hold it for its seasoned income stream or sell it for a profit. See Cash on Cash Return some are realizing with this strategy by clicking on: 51.4% ROC @ Value Added Existing Gas Station . 3. Buy land, build a high volume, multiple profit center gas station, ramp up the volume to a seasoned level then sell it for a profitable price. See example of this by clicking on: 43.9% ROC @ NTI High Volume 3 Profit Center Gas Station . 4. Buy land, build a Self-Serve Carwash & operate it as an income stream. See the numbers on this strategy at: 35.6% ROC @ NTI Self-Serve Carwash . 5. Buy land, build an In-Bay / Rollover Automatic Carwash & operate it as an income stream. This strategy is available for review at: 37.4% ROC @ NTI In-Bay / Rollover Automatic Carwash . 6. Buy land, build an In-Bay Rollover 5 + 1 Self-Serve Carwash and operate it as an income stream. The numbers for this strategy may be viewed at: 98.9% ROC @ NTI In-Bay Rollover / Self-Serve 5 + 1 Carwash . 7. Buy or lease land, build a FULL SERVICE Conveyorized Tunnel Carwash, ramp-up the volume then sell it for a profit. The facts & figures for this strategy may be reviewed at: 30.5% ROC NTI FULL SERVICE Conveyorized Tunnel Carwash . 8. Buy land, build an EXPRESS Exterior Conveyorized Tunnel Carwash, ramp-up the volume & retain it as an income stream. The Cash on Cash Return for this strategy has industry veterans hungry for correctly positioned land parcels meeting the site criteria for this most popular concept that now outnumbers the Full Service Tunnel Carwash nationwide. To see the expected returns for this strategy, click here on: 141.0% ROC @ NTI EXPRESS Exterior Conveyorized Tunnel Carwash . 9. The NEW WAVE in Carwash Configurations! For a look at the strategy involving DUAL 60' tunnels on a small 20,000 SF corner lot, click here on: 35.0% ROC @ NTI DUAL 60' Tunnels . 10. If you want the links to all of the above published ROC Gas Station and Carwash scenarios on a single page exhibit, please click here on: Links to all 9 ROC Scenarios on a single page .
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PHOTO EXHIBITS you may download and show to others are available below for your convenience:
1. "MODERN Design" EXPRESS Exterior Carwash on very small corner lot (30,000 SF) at signalized intersection.
2. "FUTURISTIC Design" EXPRESS Exterior Carwash on small corner lot (25,000 SF) at signalized intersection.
3. "SPANISH Design" EXPRESS Exterior Carwash on large lot (51,400 SF) upstream from signalized intersection.
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