Milton, Washington’s newest car wash combines cutting-edge technology with environmental goals, supported by a loan that meets both lender and borrower needs.

The Glacier Car Wash project is a 4,200-square-foot state-of-the-art facility, which will feature cutting-edge water reclamation technology designed to minimize wastewater discharge and optimize resource use. Clean water used during the vehicle wash process will be stored in multiple reclaimed water tanks for further use in washing the underside of vehicles.

ECO-Friendly development offers new opportunity

The loan will support the entrance into a growing industry with innovative technology and sustainability at its core. The opportunity for us was to engage into an asset class and niche that has growth potential and is underserved. Although the car wash sector is experiencing significant growth, a clear gap in financing options exists.

Exit Strategy

Construction is expected to be completed by Spring 2025. The exit strategy is to refinance and hold.

Final Considerations

The project has a higher LTC than what a bank typically would have provided, but it was offset by a low LTV. As a result, the client was able to leverage their construction experience and finance more than 80% of the costs while providing the lender an LTV that was less than 50%. Both the needs of the sponsor and the lender were fulfilled. As a family office lender, conventional underwriting requirements and financial covenants were able to be overcome to build the project.

The project brings Milton a high-quality eco-friendly car wash that supports local economic growth and creates local jobs. It also promotes sustainability through water conservation and energy-efficient technology, contributing to the city’s long-term environmental goals.