CHRIS SALERNO
Ian Djuric
Founder & CEO chris@qccapitalgroup.com
Djuric Family Office ian@djuricfamilyoffice.com
This document is confidential and may not be reproduced or redistributed. The information presented herein has been prepared for informational purposes only and is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or fund interest or any financial instrument and is not to be considered investment advice. This presentation is for institutional use only and is not to be distributed to any party other than its intended recipient. the following materials present information regarding a proposed creation of a special purpose vehicle (the “Issuer”) which would offer securities (the “Securities”) To finance its acquisition of a portfolio of financial assets to be selected and managed by the portfolio manager referred to herein (the “Manager”). These materials have been prepared to provide preliminary information about the Issuer and the transactions described here end to a limited number of potential underwriters of the Securities for the sole purpose of assisting them to determine whether they have an interest in underwriting the Securities. Views and opinions expressed in this presentation are those of QC Capital, LLC. and are subject to change based on market and other conditions. Although the information presented herein has been obtained from and is based upon sources QC Capital believes to be reliable, no representation or warranty, expressed or implied, is made as to the accuracy or completeness of that information. No assurance can be given that the investment objectives described here end will be achieved. Reliance upon information in this material is at the sole discretion of the reader. This data is for illustrative purposes only . Past performance of indices of asset classes does not represent actual returns or volatility of actual accounts or investment managers, and should not be viewed as indicative of future results . The investment discussed may fluctuate in price or value. Investors may get back less then they invested. Forward looking information contained in these materials is subject to certain inherent limitations. Such information is information that is not purely historical in nature and may include, among other things, expected structural features, anticipated ratings , proposed or target portfolio composition, proposed diversification or sector investment, specific investment strategies and forecasts of future market or economic conditions. The forward-looking information contained herein is based upon certain assumptions, which are unlikely to be consistent with , and may defer materially from, actual events and conditions. In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be but material. Prospective investors should understand such assumptions and evaluate whether they are appropriate for their purposes. These materials may also contain historical market data; however, historical market trends are not reliable indicators of future market behavior. Information in these materials about the Manager, its affiliates and their personnel and affiliates and the historical performance of portfolios it has managed has been supplied by the Manager to provide prospective investors with information as to its general portfolio management experience and may not be viewed as a promise or indicator of the Issuer's future results. Such information and its limitations are discussed further in the sections of these materials in which such information is presented. Past performance of indices or asset classes does not represent actual returns or volatility of actual accounts or investment managers and should not be viewed as indicative of future results. The comparisons here and of the performance of the market indicators, benchmarks or indices may not be meaningful since the constitution and risks associated with each market indicator, benchmark, or index may be significantly different. Accordingly, no representation or warranty is made to this sufficiency, relevance, important, appropriateness, completeness, or comprehensiveness of the market data, information, or summaries contained here and for any specific purpose. Past performance is not indicative of comparable future results. Given the inherent volatility of the securities markets, it should not be assumed that investors will experience returns compared to those shown here. Market and economic conditions may change in the future producing materially different results than those shown here. All investments have inherent risks. QC Capital. All rights reserved. No part of this document may be reproduced, stored, or transmitted by any means without the express written consent of QC Capital.
Table of Contents Executive Summary
4
Property Profile
10
Express Car Wash Systems
18
Investor Instructions
24
QC Capital
28
Executive Summary ✔ ✔ ✔ ✔
Investment Offerings Return Structure Car Wash Branding Debt Financing
Investment Summary We are pleased to announce that the QC Capital Team has identified a new car wash acquisition for QC Car Wash Fund I. Located in scenic Greenville, South Carolina, the property was built in 2011 and the Seller recently invested $435K of CapEx on new equipment, signage, paint, and plumbing in 2021. Situated on 0.75 acres in a swiftly developing neighborhood, the site includes a 70ft express tunnel. Our acquisition of this asset represents an exceptional opportunity, well below replacement cost. Under the AquaShine Express Car Wash brand, we aim to revamp operations, enhance efficiency and overall performance to better serve this growing community. The Greenville-Spartanburg region, also known as the Upstate, is South Carolina's largest metro area and a thriving manufacturing center. According to CoStar, over 14% of its workforce is in the manufacturing sector, particularly excelling in automotive and advanced textiles. Major players such as BMW, Michelin, and Bosch not only anchor the region but also draw in suppliers, reshaping the textile industry's focus toward automotive use. Recent job announcements, including 500 positions at ZF and 50 at Huvis Indorama, underscore the region's momentum. Clemson University, renowned for its engineering excellence, houses the International Center for Automotive Research (ICAR), amplifying the region's automotive research capabilities. This engineering prowess also attracts aerospace manufacturers, like Lockheed Martin, which is set to hire 200 workers for a significant Air Force contract at its Greenville facility. This asset is situated at the epicenter of this lively region and is conveniently positioned just across from Greenville Technical College, home to over 15,000 students. Greenville is an ideal spot for a car wash business ready to cater to the expanding community and leverage the thriving economic vitality. This offering is a 506(C) and is open to accredited investors only. An accredited investor has either a net worth of $1 million, not including their primary residence, OR an annual income of $200,000 (or $300,000 if married) for the last two years and you have a reasonable expectation that it will continue.
INVESTMENT SUMMARY Purchase Price
$2,800,000
Equity Raise
$2,300,000
Wash System
Express Tunnel
Type
Acquisition
Lot Size
.75 Acres
Hold Period
5 Years
Class A Preferred Equity Return
10%
Class A Return at Refinance
5%
Class B Preferred Equity Return
12%
Class B Return at Refinance
8%
Estimated Closing Timeline
Site 1: Greenville, SC March 15th 2024
| 6
Prefered Equity Return Structure Two-Tiered Prefered Equity Structure Allows Investors to Match Investment Goals
Class A
General Partners
40%
Min. $50,000
LIMITED PARTNER (B)
❖
10% Current Preferred Equity Return
❖
5% at Exit
LIMITED PARTNER (A)
Class B
DEBT
Min. $200,000
60%
*Based on 5 year hold for limited partner investment **Projected cash on cash returns are based on projected assumptions for these properties.
❖
12% Current Preferred Equity Return
❖
8% at Exit | 7
Car Wash Branding Following the acquisition of our AquaShine Express locations, our marketing team will implement signage at all locations, featuring our branded logo below. Furthermore, this logo will be utilized for the website, social media platforms, and any other marketing initiatives we undertake.
*subject to change before closing
| 8
DEBT FINANCING* Requested Proceeds
$2.1 Million
Est. Loan to Value
60% - 70%
Lender
Private Bank
Amortization Period (Years)
15 - 25
Term (Years)
5
Floating/Fixed Rate
Fixed Rate
Interest Rate
7.50% - 8.25%
*subject to change before closing
| 9
Property Profile ✔ ✔ ✔ ✔
Property Specifications Business Plan Wash Count Pro Forma Projections
509 S. Pleasantburg Dr. Greenville SC 29607
Site Specifications Acquisition 70 Foot Express Tunnel Sonny’s Equipment 0.75 Acres Built in 2011 & Renovated in 2021
About Greenville, South Carolina
$60,388
74,548
33,089
52.4%
Median Household Income
Total Population
Number of Households
Have a Bachelor's Degree
| 12 | 12
| 13
Business Plan The strategy for the car wash acquisition centers on a comprehensive revitalization plan. It begins with a rebranding initiative to invigorate the site's identity, followed by essential enhancements like restriping the parking lots and giving the exterior a fresh coat of paint. The key focus lies in amplifying the overall customer experience and value proposition by elevating operational standards. This involves assembling a stellar on-site team, ensuring top-notch service, and refining operations for seamless efficiency. Additionally, augmenting marketing efforts will play a pivotal role, aiming to amplify visibility and attract a wider audience. By implementing these strategic steps, the goal is to not only enhance the site's appeal but also justify increased membership pricing through a superior and elevated service offering.
14
| 15
Traffic/Wash Count
Pro Forma Projections
*Numbers are subject to change
| 17
Express Car Wash System ✔ ✔ ✔
Why Car Washes are Booming Major Car Wash Types Car Wash Stats
Why Car Washes are Booming 1.
83% of Americans who own or lease a vehicle used a Professional Car Wash (PRO) at least once in the past year. This is the highest percentage of PRO washers since the ICA conducted its first U.S. Consumer Study in 1996.
2.
Home washing declined in popularity. The fact is, we live a world where convenience and quality are paramount. This is clearly evidenced as at-home washing (DIY) declined dramatically, from 54% in 2016 to 42% in 2019. Car washes could not be more on-trend.
3.
The desire for convenience and quality reached an all-time high among past-year car wash consumers. 77.5% chose a PRO wash most often while DIY most often declined to just 22.5%. This increase in the mix of PRO most often versus DIY most often is in sharp contrast with the mix just three years ago.
4.
The health of the U.S. economy is huge. The confluence of record-low unemployment, strong consumer confidence and a 40-year-high in new vehicle sales were instrumental.
5.
Car Wash price/value is both fair and reasonable. Only 23% of all consumers expressed any dissatisfaction with the price paid per wash.
6.
New vehicle owners are passionate about keeping their new vehicle looking new. 57% of new vehicle owners (3 years old or newer) wash their vehicles at a car wash once a month or more often compared to 44% of owners of vehicles more than 10 years old.
7.
The passion for a clean car is rational and logical. 59% of Americans believe that washing a vehicle is an important and necessary part of routine maintenance. It protects the value of their vehicle, prevents rusting and is part of regular vehicle maintenance.
8.
But even more so, the deepest passion lives in the heart. 86% say that “a clean vehicle makes me feel good” while 78% see it as “a good reflection on me.”
9.
The love of a clean car is fueling unlimited wash programs. 14% of consumers claim to be members. The upside potential to drive membership is huge and another reason to be buoyed.
10.
The desire for convenience extends to location. The growth of the industry is making car washes more convenient to find. Greater penetration and visibility triggers both the rational and emotional desire to have their vehicle look its best.
| 21 International CarWash Association
3 Major Car Wash Types
Full Service
In-Bay Automatic/ Self Service
Express Tunnel
In the car wash market, three primary types stand out: express tunnel, in-bay automatic, and self-service. Self-service demands customers to clean their vehicles themselves, lacking convenience. In-bay automatic options have limitations in the number of cars they can efficiently wash per hour, impacting throughput. Express tunnels merge the ease of automatic service with impressive efficiency in handling a large volume of vehicles. They provide a balance of convenience and high throughput, making them a preferred choice for many seeking a quick and effective wash. Express tunnels are the fastest growing segment of the car wash industry. These systems utilize a series of automated machines and processes, swiftly guiding vehicles through a predetermined sequence of cleaning stages. These systems are known for their efficiency, handling multiple cars simultaneously and delivering a quick yet thorough wash in a matter of minutes. The conveyor belt technology in express tunnels are valued for their ability to maximize throughput and reduce wait times for customers. These wash systems often incorporate advanced technologies for precise cleaning, making them popular choices for car wash businesses aiming for speed, efficiency, and quality service.
| 22
Car Wash Statistics
66%
2B+
$14.7B
Of car owners in the U.S. wash their vehicles 1 -2x a month
Cars are washed by car washes in North America every year.
Was brought in from the professional car wash industry in 2022
10-50
3.1%
77%
Gallons of water used to wash a single car.
Anticipated compound annual growth rate from 2022 to 2030.
Of Americans consider environmental impacts when purchasing products.
40-60%
14%
13
Profit margins for car wash facilities.
Of car wash consumers have memberships.
Car washes per year on average for Americans
| 23
Investor Instructions ✔ ✔
Investor Expectations How to invest
Investor Expectations
| 26
How to Invest: Accredited Investors Please follow the steps below to make your investment in this offering. CLICK HERE for detail on the criteria to be an Accredited vs Non-Accredited investor.
Create Account 1.
Register on the QC Capital Investor Portal
4.
Accreditation Letter
Soft Commit
2.
Make a soft commitment
Upload or obtain a third-party accreditation letter in the portal (free verification available)
Wire Funds
Firm Commit Make a firm commitment by completing the subscription agreement
3.
5.
Wire in your investment fund using the wiring instruction in the secure portal.
Please complete the paperwork as soon as possible. Remember, completing the paperwork will indicate your intention to invest; however, it does not guarantee a spot in the deal. At this point, it will be a first-come, first-serve opportunity based on when funds are received.
| 27
QC Capital ✔ ✔
Our Strategy Sponsorship / Management Team
Our Strategy • 100 – 200 locations in 5+ years • Growth markets with high traffic counts • Strategic acquisitions, develop quickly, manage in-house
Strategy • Class A 10% pref • Class B 12% pref • Monthly distributions
Cashflow • Class A 5% return on investment at exit • Class B 8% return on investment at exit • Initial capital returned
Equity Growth • 60% - 80% year 1 anticipated depreciation • 15-year depreciation schedule • Bonus depreciation
Tax Benefits • Refinance or portfolio sale
Exit Strategy | 30
| 31
QC Capital High-Yield Dispositions The QC Capital Team has been investing in commercial real estate assets since 2018 with a current and existing portfolio in excess up to $350M+ with 1000+ apartment units.
PARTNERS
CHRIS SALERNO CEO & FOUNDER
IAN DJURIC DJURIC FAMILY OFFICE
| 32
DEDICATED TEAM OF EXPERTS
JOE FAIRLESS ADVISOR
NICHOLAS ABRAHAM SENIOR DIRECTOR INVESTOR RELATIONS
GREG SILBERMAN ADVISOR
SARAH HANNA DIRECTOR ASSET MANAGEMENT
GREG EDMONDS DIRECTOR ACQUISITIONS
| 33
DEDICATED TEAM OF EXPERTS
JOHNA CHARLES MARKETING
EVAN PANDELL MARKETING
JAMES FRIDAY DIRECTOR
MAINTENANCE & CONSTRUCTION
| 34
Featured In