Eagle Group Finance provided Edwards Express Partners, L.P. with a $2.5 million first mortgage loan to refinance the H2Go Express Car Wash in Westminster, CA. The three-year, non-recourse interest-only loan will be used to pay off the existing construction on the 24,000-square-foot car wash. Financed by Los Angeles-based brokerage firm Financial Compound, the loan will also help the borrower qualify for more traditional bank debt at the end of the term.
“The majority of traditional lenders will not lend on car washes because of the special use nature of the asset,” said President Brian Good. “We were willing to fund the loan because the property value was there and the sponsor demonstrated a proven business model that we believe in.”
H2Go Express uses biodegradable chemicals and recycles 80 percent of the water it uses. The company’s commitment to environmental protection has helped it become profitable after only six months of operation.