Strickland Brothers Oil Change & Car Wash
Special Purpose | 7.00% CAP | 6,907 SqFt
Marketing description
Surmount is pleased to present the exclusive listing for a Strickland Brothers Car Wash located at 2550 FM Hwy 365, Port Arthur, TX 77640. The site consists of roughly 6,907 rentable square feet of building space on an estimated 1.7-acre parcel of land. This Strickland Brothers Car Wash is subject to a 20 Years-year Triple Net (NNN) lease, which commenced 3/9/2023. The current annual rent is $674,050 and has scheduled increases of 2.00% annually.
Investment highlights
Bonus Depreciation Opportunity | The property qualifies for 100% bonus depreciation, offering investors significant tax advantages in the early years of ownership. These incentives enhance after-tax cash flow and improve overall investment returns, making this asset especially attractive for buyers seeking efficient tax treatment on real estate holdings. SURMOUNT is not a tax advisor. Please consult your own tax professional.
Long-Term Tiple-Net (NNN) Lease | The property features an original 20-year absolute triple-net (NNN) lease, with over 17.5 years of term remaining, offering true passive ownership. With zero landlord responsibilities and a national brand tenant in place, the investment offers predictable cash flow and minimal management.
Strong Corporate Guarantee | The lease features a strong corporate guarantee from SB PEP Holdco, LLC, ensuring financial backing from the parent entity of Strickland Brothers. Strickland Brothers is a rapidly growing operator of oil change and car wash locations and currently operates over 250 locations across the United States.
Income Tax Free State | Texas is 1 of 9 income tax free states in the United States. Ownership of an asset in an income tax free state can provide several benefits to landlords. Discuss with a Certified Public Accountant for further details.
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