Frankton car and dog wash

The six-bay complex on a 919 sq m site at 28-30 Lake Rd, Frankton. Photo / Supplied

A well-established car and dog wash facility on a high-profile corner site in Frankton, Hamilton, is sale with a new five-year lease in place and renewal rights for a further 20 years.

The 259sq m six-bay complex on a 919sq m site in two titles at 28-30 Lake Rd is generating net annual rent of $77,026.

The property is being marketed by Alex ten Hove and Mike Swanson of Bayleys Waikato and will be offered for sale in Bayleys' Hamilton auction rooms at 11am on Thursday May 10, unless sold prior to that date

"This is a state-of-the-art complex, with a replacement value estimated to be in excess of $3 million, offering property investors an excellent, passive diversification opportunity in a thriving, growth industry," says ten Hove.

"In operation since 2011, Frankton Car Wash - formerly Scrubbers Car Wash - is a convenient go-to vehicle and dog washing facility for those living and working in the central city and surrounding suburbs.

"It is strongly located on a very busy intersection with large traffic flows and great visibility from the road due to the property's eye catching branding and signage. The flat easy access with two street frontages also helps draw in customers."

The property's lease runs for five years from March 2018, with four further five-year rights of renewal which, if exercised, would take the final expiry out to March 2043. The lease has built in rental growth with fixed increases based on the Consumer Price Index (CPI) as well as reviews to market on renewal dates.

Under the net lease structure, the tenant pays all outgoings including power and water charges, rates, insurance as well as for equipment maintenance and painting.

The well-appointed car wash facility has five self-service wash bays with eight function options including a pre-soak/degreaser, foam brush, high pressure rinse functions as well as coat protectant and sealant products.

There is also a brushless automatic wash bay which uses the latest in touchless technology and offers three wash options. Automatic measuring and sensing technology determines the size and shape of the vehicles with a spray arm circling them and applying a carefully formulated combination of soaps and protectants along with high pressure washing.

Six vacuum stations with one combination shampoo and vacuum machine, for interior cleaning, and an enclosed dog washing facility complete the complex. There is also a vending machine, located next to the main note changer machine, offering a variety of car care products.

Swanson says all facilities are self-service, operated by coins or tokens. "Motion activated lighting throughout the facility means it can be used 24/7 and the business can be operated by one person with an office area overlooking the property."

He says the facility uses top-of-the-line equipment and products from industry leading companies such as Gin San Industries, Wash World Inc and Turtle Wax Pro.

"Roof rainwater is collected and stored for use in the wash bays which contributes to conserving Hamilton's precious water supply, with the average commercial wash also using substantially less water than hose washing a vehicle at home," says Swanson. "All contaminants are retained on site through waste receptors and disposed of using council approved contractors.

"It is difficult to obtain a resource consent to establish a car wash facility, because of stringent environmental and discharge requirements, and there are only two of these types of self-care wash complexes in Hamilton."

Alex ten Hove says the continuing growth of Hamilton, now New Zealand's fourth largest city, augurs well for the future of its business sector.

"Vehicle numbers will continue to increase along with the population which creates additional potential customers for specialist auto service providers such as Frankton Car Wash."