The Mandate
An owner-operator with prior single-tunnel experience in the Las Vegas valley engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 7(a) financing request for a project located in Clark County, Nevada. Total project capitalization fell within the $5M-$10M band. The capital provider, a specialty SBA lender, required documentation consistent with current program review standards. The analytical question put to the team: Did Henderson trade-area traffic counts and registered-vehicle density support dual-tunnel throughput at 145,000 annual washes.
Engagement Scope
- Primary market area defined as a 3-mile drive-time
- Comparable supply set of 9 properties
- Demand model framework: dual-format traffic-count and self-service-bay demand build
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 3-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of car wash assets in Nevada. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 9 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a dual-format traffic-count and self-service-bay demand build approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 2.6 across the projection window, with a stabilized capture rate of 3.4%.
Exhibit 1: Comparable Supply Set, Nevada PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- Trade-area registered vehicles totaled 142,000 across the 3-mile drive-time PMA.
- Comparable dual-tunnel facilities cleared 138,000 to 162,000 annual washes with 41% membership penetration.
- Self-service bay revenue projected at $186,000 annually based on regional comparable performance.
- Year-three DSCR of 1.46x cleared the SBA 7(a) review benchmark.
Deliverable
The delivered report ran 112 pages with 26 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the specialty SBA lender. The corresponding SBA 7(a) review framework guided exhibit selection and supporting documentation.