Car Wash Investment Cleans Up for $1.9 Million
A car wash investment opportunity with redevelopment upside (STCA) at Dandenong North in Melbourne’s south-east has been sold by Ray White Commercial Glen Waverley for $1.9 million and a 6.25 per cent yield.
The approximately 1,400 sqm site at 99-101 Gladstone Road, Dandenong, was sold to a private investor by Ray White Commercial Glen Waverley’s Ryan Trickey and Ben Ainsworth following an Expression of Interest campaign on behalf of a private owner.
Ryan Trickey said the offering provided a secure commercial investment opportunity as the property enjoyed main road exposure and a well-established car detailing business tenant returning net rental of approximately $115,000 per annum.
“With an increase in high density living around Melbourne’s activity centres, car wash businesses are a great place to invest,” Ryan Trickey said.
“They generally have lower contamination exposure to owners when compared to assets such as service stations.
“Find one on a corner or in high profile location and cash flow should be secure as a good car wash should be easy to lease and retain tenants.”
Ryan Trickey said car wash assets can deliver strong returns in comparison to other investments.
“A site such as the Gladstone Rd one is returning net rental of approximately $115,000 per year which is a lot stronger than the $40,000 gross rent you might receive from two adjoining rental houses in the same location.”
Ben Ainsworth said the car wash business is on the major intersection of Gladstone and Heatherton roads and benefits from both homebound and inbound traffic.
“Residential and commercial development in this area is well documented, both landlord and tenant should gain from the increase in consumers in this area,” he said.