In a significant development for the car wash industry, Hanley Investment Group Real Estate Advisors has successfully arranged the sale of two new Quick Quack Car Wash properties in California within a month. The transactions highlight the growing interest in express car washes as profitable and resilient investments. The combined sale value of these properties totals $5.38 million, each secured under long-term triple-net leases. This marks the third Quick Quack Car Wash property sold by Hanley Investment Group within 90 days, underscoring the company's strategic focus on expanding its footprint in key markets.
Details of the Transactions
In the first deal, Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller and developer, 5th Street Development, in the sale of a newly constructed Quick Quack Car Wash in Grand Terrace, located in San Bernardino County. Situated on a 1.35-acre site adjacent to a bustling Stater Bros. Market-anchored shopping center, this property sold for $2.7 million. The buyer, a private investor from Pasadena, was represented by Patrick Toomey from Institutional Property Advisors. The transaction was completed swiftly within 14 days, facilitated by an all-cash offer from a repeat buyer.
The second property, located in Lodi, San Joaquin County, also saw a successful sale at $2.68 million. Developed by MEE Capital Investments and AdVal Properties Inc., this Quick Quack Car Wash occupies a prime 1.0-acre location near a major intersection, part of a Raley’s grocery-anchored shopping center. John Kourafas from Visintainer Group represented the buyer, another private investor based in central California. The lease agreement includes a robust 20-year term with 10% rent increases every five years, along with multiple renewal options.
Both properties are situated in regions with high traffic volumes and strong retail presence, enhancing their attractiveness to investors. In Grand Terrace, the nearby Interstate 215 sees over 177,000 vehicles daily, while in Lodi, the intersection of S Lower Sacramento Rd. and W Lodi Ave. attracts 27,000 cars per day. These locations are expected to generate substantial foot traffic, benefiting both the car washes and surrounding businesses.
From a broader perspective, these sales reflect the ongoing growth of Quick Quack Car Wash, which now operates over 230 locations across several states. The company recently received a significant minority investment from KKR, further fueling its expansion plans. With its innovative express format and increasing customer loyalty through subscription programs, Quick Quack is positioning itself as a leading player in the car wash industry.
According to Asher, the car wash sector's resilience and profitability make it an attractive option for net-lease investors. "Express carwashes are one of the most profitable tenants in the net-lease sector," he noted. "With margins between 50% to 60%, they can withstand potential economic challenges and continue to attract investor interest."
Industry Insights and Future Prospects
These transactions not only signify the strength of the car wash market but also highlight the evolving role of such establishments in commercial real estate. As more consumers opt for professional car washing services, these facilities are becoming integral parts of shopping centers, driving additional traffic and supporting local economies. The rapid expansion of Quick Quack and similar operators suggests that we can expect more single-tenant net-lease car wash properties to come on the market in the coming months, offering lucrative opportunities for investors seeking stable, high-return assets.
For readers and industry observers, these developments underscore the adaptability and growth potential of the car wash sector. As consumer preferences shift towards convenience and quality service, express car washes like Quick Quack are well-positioned to thrive, making them valuable additions to any investment portfolio.