T here
is a brand new, just opened for several
months ARCO with an
AmPm convenience store,
and express car wash. This
station is a “cash cow in training” with
multiple sources of revenues, profits,
and cash flow. It is located in a
Community Redevelopment District, and as
such, has no
competitive gas stations
within several miles in any direction,
nor will there be for the foreseeable future.
Once it is fully seasoned, ARCO
expects this station is pumping about
210k + gallons of gasoline
per month, C-Store
is grossing about $75,000-$90,000/per
month, and at least another $50,000
per month from the express car
wash. Once everything is in place,
the
projected EBITDA
for 2010 is an
estimated $600,000.In 2011,EBITDA is projected to reach approximately $1.1 million
before debt service. Once fully seasoned, EBITDA could exceed $1.3
million annually.
We are also in the early stages
of developing a second location about 6
miles from the first location.
Once financing is in place, we anticipate
being able to open this store by the end
of Q4 this year.
This 1.15acre
location is right off a freeway exit, and will have a 50 foot sign visible
from the freeway.
Similar to the first, this new location will be an ARCO with
an AmPm convenience store, with an
express car wash, per the attached
diagram. While there are other gas
stations in the vicinity of
this exit,
none of them have the full combination
of gasoline, convenience store, and car
wash.
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The original developer of these
facilities and _______ are committed to the
long-term
success
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of these stations. The on-site
manager (who is also one of the minority
owners) has over
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20 years of experience in successfully running ARCO stations, and has personally opened 10 other
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locations across Southern California ________ has a number of
resources in the car wash
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industry, and
has the expertise available to
demonstrate how the express wash will revolutionize
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the ARCO model. The
successful launch of these locations
will give us access to a number of other
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development and acquisition
opportunities in the ARCO space.
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This Arco AmPm is
located in
corner of 2 major roads in
re-development area. Lot size : 1+ acre.
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C-store
size: 3500 sq.ft, Car wash not
yet complete. Lease : $2,500/mo. Lease:
30
years.
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Land own by the City. The
Business owners has the option
to buy the lot @ $400k.
Similar sized ARCO with AM/PM
convenience stores, including some with
smaller “in-bay”car washes,
are
currently listed for sale by other
brokers and ARCO for $6-8 million. We
expect long term
values to remain at
that level even in the current economic
environment, and increase once
the
economy has turned around, which leads
us to project that we could sell this
station
in 5 to 7 years for as much as
$8 million. By developing several
similar locations in the region,
and
building additional brand equity on all
of the express washes, we are optimistic
that we could increase the long-term
valuation multiple on a package
sale in
5 to 7 years.
There are two options that we
are offering to Investor(s):
Option #1:
We are looking for an investor
partner to help us complete the
full operation on Store #1, and
fast track the development of
Store #2. In our ideal
scenario, an investor(s) would
acquire 40% of both stations for
$2.0 million, although the
investor(s) could choose to
invest $1.0 million for a 40%
interest in one or the other
station, instead of both. We
will also need the investor’s
help to secure a permanent
take-out loan on Store #1, and a
construction loan on Store #2.
We also have opportunities for
other development locations in
Southern California , so we
would like to build a long-term
relationship with our investor(s)
to have them participate in
these future opportunities.
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Option # 2: Car wash only, as a
stand alone Entity: We are looking for an investor
partner to help us complete the
Express Wash. An
investor(s) would acquire 49% of
the Express Wash for $450,000,
which would be used as follows:
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·
$264,000 for
Express Wash equipment
·
$135,000 for
tunnel construction (attached to
the convenience store)
·
$44,000 for “soft
costs” (architecture,
engineering, related consulting
fees, closing costs)
·
$7,000 for signage
We expect to pay out
approximately 90% of Operating
Profit as a distribution to the
partners in the Express Wash,
which should result in a target
payout of up to $200,000
annually to the investor(s), for
a cash on cash return on
investment of up to 44%
annually. Longer term, similar
sized Express Washes are
currently listed for sale by
other brokers for $2-3 million.
We expect long term values to
remain at that level even in the
current economic environment,
and increase once the economy
has turned around, which leads
us to project that we could sell
this Express Wash alone in 5 to
7 years for as much as $2.7
million, which would be a return
on equity of three times the
requested investment.
For additional information,
please contact Quinchee Loeng at :626-416-8826 ( cell ).
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___________________________________________________
Buyer
application :
request
from Seller. Investor please provide us an updated (not older then one
month old ), authentic/verifiable proof of funds on investment, to present to Seller for review and
approval prior for meeting.
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___________________________________________________
Disclaimer:
All the
information regarding this Business /Property for sale is provided by
the Seller or /and its reliable Associate, and is not verified in any
way by U.S. Business Brokers. Brokers and it Associates have no
knowledge of the accuracy of said information and made no warranty
express or implied as to the accuracy of such information. Investor / Buyer must
perform their own due diligence, personally inspect, verify and solely
satisfy Investor/ Buyer regarding all physical conditions and capacities,
property improvement descriptions and legal descriptions, without
reservation. It subject to
change of price/ terms or withdrawal from the market without prior
notice.
___________________________________________________
U.S.Business
Brokers.net
2540 Huntington Dr, suite #
109, San Marino, CA 91108
Office : 01-626-285-5653. Fax: 01-626-285-5612 . or 01- 626-416-8826 (
mobile ).
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