BlueWave Express Wash

Highlights:

• • LONG TERM LEASE - Over 11.5 years remaining on an original 25 year lease, providing an investor long term and stable investment. In addition, there are six 5-year lease extensions, potentially keeping the tenant at this site for the next 45 years.
• • RENTAL INCREASES - There are 10% rental increases every 5 years in the base term and all extensions providing an investor hedge against inflation.
• • PROVEN LOCATION - The site has been operational for over 10 years providing insight on future operations and profitability.
• • ABSOLUTE NNN LEASE - With the current lease in place, there are no Landlord responsibilities, providing an investor a steady return free from management hassles.
• • STRONG FRANCHISEE/GUARANTOR - Blue Wave Operates 41 Express Car Wash locations in Texas and California and the lease is guaranteed by all 41 locations.
• • BONUS DEPRECIATION - Fee simple ownership of a Car Wash provides the landlord the opportunity to use accelerated Bonus depreciation model. Consulting your Accountant or Tax Attorney is advised.
• • HOUSTON MSA - The Greater Houston metropolitan area, is the fifth-most populous metropolitan statistical area in the United States and the second-most populous in Texas after the Dallas–Fort Worth metroplex.

Description:

Prime Net Lease is pleased to present the exclusive opportunity to acquire a single-tenant, net leased, Blue Wave Car Wash located at 9801 Jones Rd , Houston, TX (the "Property"). Its strategic location in an affluent part of Houston with high traffic counts and high household income ensures a steady flow of customers. The Property has been successfully operating as a car wash for over the last 10 years. The property features an express car wash tunnel and 16 covered and free vacuum stations. The property is encumbered by a 25-year Absolute NNN lease. There are currently 13+ years remaining on the base term. In addition, there are Six, 5-year lease options. The lease provides for 10% rental increases every 5 years in the base period as well as during the extension periods. Due to the current lease structure, there are no landlord responsibilities in the ownership of this Property, providing an investor a stable, predicable monthly income stream. While taking advantage of the tax benefits of Fee simple ownership of this car wash provides, the landlord also has the opportunity to use accelerated Bonus depreciation model.

BlueWave Express Car Wash delivers unbeatable quality, eco-friendly washes at unbeatable prices. Free unlimited turbo-powered vacuums, clean restrooms, and a full staff on site. BlueWave car washes reclaim and reuse up to 80% of the water used in the car wash process through a state-of-the-art Pure-Water Recovery System. They use biodegradable soaps and detergents and capture and dispose of all contaminants. BlueWave also works locally with city groups on educating residents on the importance of water conservation. BlueWave selects high visibility, high traffic, premier retail locations in the markets it serves. The goal of BlueWave is to become the “Starbucks of Car Washes.”

Houston is the most populous city in Texas and in the Southern United States. It is the fourth-most populous city in the United States after New York City, Los Angeles, and Chicago, and the sixth-most populous city in North America. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the seat of Harris County and the principal city of the Greater Houston metropolitan area, which is the fifth-most populous metropolitan statistical area in the United States and the second-most populous in Texas after the Dallas–Fort Worth metroplex.

Houston is recognized worldwide for its energy industry, particularly for oil and natural gas, as well as for biomedical research and aeronautics. Renewable energy sources, wind and solar, are also growing economic bases in the city. The city and area have also been growing centers for technology. Major technology and software companies within Greater Houston include Cybersoft, Houston Wire & Cable, and HostGator. In 2019, it was announced that HP Enterprises would relocate its global headquarters from California to the Greater Houston area. The Houston Ship Channel is also a large part of Houston's economic base. In 2013, Houston was identified as the number one U.S. city for job creation by the U.S. Bureau of Statistics after it was not only the first major city to regain all the jobs lost in the preceding economic downturn, but also after the crash, more than two jobs were added for each one lost. The city of Houston is also highly regarded for its diverse food and restaurant culture, with major publications consistently naming it one of "America's Best Food Cities".

The Houston area is a leading center for building oilfield equipment. Much of its success as a petrochemical complex is due to its busy ship channel, the Port of Houston. In the United States, the port ranks first in international commerce and 16th among the largest ports in the world. Unlike most places, high oil and gasoline prices are beneficial for Houston's economy, as many of its residents are employed in the energy industry. Houston is the beginning or end point of numerous oil, gas, and products pipelines.

The University of Houston System's annual impact on the Houston area's economy equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs generated. This is in addition to the 12,500 new graduates the U.H. System produces every year who enter the workforce in Houston and throughout Texas. These degree-holders tend to stay in Houston. After five years, 80.5% of graduates are still living and working in the region.

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