Car Washes
Location: Center City, Philadelphia
Size: 3 operations
Project Type: Operation of cash-flowing businesses
Ownership Structure: Iron Stone Real Estate Fund I - owned jointly with venture partner
Total Projected Investment: $5.5 million
Status: Complete
Iron Stone acquired these three prime, high-traffic, suburban Philadelphia car washes located in Norristown, Flourtown, and Bryn Mawr, Pennsylvania from a small publicly-traded company. Upon acquisition Iron Stone implemented a new marketing strategy including new signage and improvements to the infrastructure. With better management we also improved the efficiency of the operations and lowered costs while increasing the volume of customers. The underlying real estate in Norristown and Flourtown may have value-added redevelopment potential in the future. Iron Stone acquired the car washes in a 50/50 joint venture partnership with a seasoned full service car wash operator who manages operations. This investment is yielding an ongoing 9% annual return on equity. In addition, the businesses and real estate have increased considerably in value due to the improvements we have made in operations.
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