Hanley Investment Group Real Estate Advisors announced that the firm arranged the pre-sale of a new construction Quick Quack Car Wash in Moreno Valley, Calif., located at the new Moreno Valley Marketplace Shopping Center, adjacent to March Air Reserve Base. The sale price was $3.2 million for the absolute triple-net ground lease. This is Hanley Investment Group’s 47th express car wash sale in the last 24 months.

Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko, President Ed Hanley, in association with Jason Gordon, president of Epsteen & Associates in Marina del Rey, Calif., represented the developer and seller, Inland Iris Partners, Inc., an affiliate of The Lynch Group Inc. The buyer, a private investor based in Rancho Palos Verdes, Calif., was represented by Amy Kim at Hanbada Realty.

“We procured a 1031 exchange buyer through an industry relationship and successfully closed escrow utilizing a pre-sale marketing strategy,” Asher said. “We structured a 21-day due diligence period and closed escrow three months prior to the tenant’s formal rent commencement date. This sale represents the first Quick Quack Car Wash sale in California since August 2022.”

Asher added, “The car wash business, which is a service-based and internet-resistant, is over a $15 billion industry that is growing at 3.2% annually. Advances in technology including the introduction of mobile apps, on-demand services, and subscription packages have increased efficiency and convenience, and have substantially increased demand for express car washing.”

The Quick Quack Car Wash within the Moreno Valley Marketplace is located at 24855 Iris Avenue at the signalized intersection of Perris Boulevard and Iris Avenue (35,000 cars per day) in Moreno Valley. The car wash sits on an 0.80-acre pad, and the co-tenancy includes Aldi, The Habit Burger Grill and Starbucks Drive-Thru, which are all under construction and scheduled to open for business later this year.

Moreno Valley is the second-largest city in Riverside County the region is expected to grow by more than 20% by 2048.

Based in Roseville, Calif., Quick Quack Car Wash is a fast-growing chain of exterior-only express car washes utilizing eco-friendly techniques in each of its locations. Quick Quack’s filtering technology reclaims 100% of the water used in each cleaning operation and the company uses biodegradable and non-toxic soaps and cleansers. Quick Quack Car Wash has over 190 locations in Arizona, California, Colorado, Texas and Utah.

“Express car washes are one of the most profitable tenants in the net-lease sector and, therefore, we expect that this segment will continue to experience steady demand from investors in 2023,” Asher said. “With margins between 50% to 60%, the average location can be very profitable and withstand potential future economic challenges. In certain markets, top-performing car washes have been backfilling vacant pads, former shop buildings and junior box spaces and are becoming quasi ‘anchors’ to a shopping center. These car washes can bring tens of thousands of cars to shopping centers annually. Based on the recent expansion of numerous car wash operators nationwide (including Quick Quack), we expect to see a significant increase in the number of single-tenant net-lease car wash properties for sale over the next 18 months.”