Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that it has arranged the sale of two new construction, single-tenant properties occupied by a Quick Quack Car Wash to two separate private buyers within 30 days in California. The two properties sold for a combined $5.38 million, each with a new absolute triple-net ground lease with an initial term of 20 years. This is the third Quick Quack Car Wash Hanley Investment Group has sold within the last 90 days.

Grand Terrace (San Bernardino County), California

In the first transaction, Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller and developer, 5th Street Development in Del Mar, California, in the sale of a new Quick Quack Car Wash ground lease at 22181 Barton Road in the city of Grand Terrace in San Bernardino County, for $2.7 million. The car wash is located on a 1.35-acre outparcel to a Stater Bros. Market-anchored shopping center, at the hard corner of Michigan Street and Commerce Way, just off Interstate 215 (177,000 cars per day). The Stater Bros. Market has 1.1 million annual visits and is ranked in the top 20% within the chain, according to Placer.ai. Co-tenants at the shopping center include AutoZone (top 1% in California, per Placer.ai), Miguel’s Jr., and McDonald’s. The buyer, a Pasadena-based private investor, was represented by Patrick Toomey, executive director with Institutional

Property Advisors in El Segundo, California.

“We secured an all-cash, repeat buyer through a long-standing broker relationship before formal marketing commenced and facilitated a quick 14-day transaction from the opening of escrow to closing,” said Asher.

According to Asher, the new 20-year absolute triple-net ground lease has 10% increases every five years during the initial term with four five-year options.

Lodi (San Joaquin County), California

In the second transaction, Hanley Investment Group’s Asher and Lefko represented the seller in the sale of a new Quick Quack Car Wash ground lease at 515 South Lower Sacramento Road in Lodi, San Joaquin County, for $2.68 million. The property was developed by MEE Capital Investments and AdVal Properties, Inc., on behalf of a private partnership. The car wash is located on a 1.0-acre outparcel to a Raley’s grocery-anchored shopping center near the signalized intersection of South Lower Sacramento Road (a major traffic thoroughfare and a commercial corridor) and West Lodi Avenue (27,000 cars per day at the intersection). Co-tenants at the shopping center include Vista Oaks Charter School, Great Clips, Batteries + Bulbs, Huntington Learning Center, and Speedway. Retailers along Lower Sacramento Road include Walmart Supercenter, Lowe’s, Target, Safeway, BevMo, Burlington, Five Below, Food 4 Less, Hobby Lobby, In-N-Out Burger, Marshalls, Petco, Raising Cane’s, Staples, and Ulta Beauty. Lodi is just 35 miles from downtown Sacramento and 80 miles east of San Francisco. Nearly 40% of California’s premium wine grapes are grown in this region, making Lodi the “Winegrape Capital of the World.” Several major companies are located in Lodi, including Pacific Coast Producers, Con Agra Foods, Kubota, and Blue Shield of California. The buyer, a central California-based private investor, was represented by John Kourafas at Visintainer Group based in Fresno, California.

“We generated multiple competitive offers to maximize the sales price for the seller and procured an all-cash 1031 exchange buyer,” said Asher. “We secured the buyer before the tenant started construction, negotiated a 21-day contingency period and a 35-day escrow, and closed the transaction prior to the tenant opening for business and paying rent.”

According to Asher, the new 20-year absolute triple-net ground lease has 10% increases every five years during the initial term with five 10-year options.
In mid-October 2024, Asher and Lefko arranged the sale of a newly constructed Quick Quack Car Wash in Yucca Valley, California. The car wash is located on a pad within a Stater Bros-anchored shopping center on the Twentynine Palms Highway in San Bernardino County. The sale price was $2.04 million for the absolute triple-net ground lease.

Founded in 2004, Quick Quack is one of the largest and fastest-growing express format car wash operators in the U.S., with over 230 locations across California, Texas, Arizona, Utah, and Colorado.

In June 2024, KKR, a leading global investment firm, and Quick Quack, announced that investment funds managed by KKR have made a significant minority investment in Quick Quack. Quick Quack’s founders and its longtime equity partner, Seidler Equity Partners, will continue to hold meaningful stakes in the company alongside KKR. The new investment will support the continued acceleration of Quick Quack’s growth through innovation, marketing, and organic expansion in new and existing markets.

Asher highlights that the car wash industry’s growth is driven by several factors: it is service-based and internet-resistant, there are more cars nationwide leading to more daily washes, and the express car wash model reduces overhead per location. Additionally, customer lifetime value is expanding due to unlimited wash subscription programs, and the industry has evolved to have a more retail feel with increased mergers, new investments, and expansion efforts. More customers prefer a professional car wash over a do-it-yourself method, further driving demand.

“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 the future,” Asher said. “With margins between 50% to 60%, the average location can be very profitable and withstand potential future economic challenges.”

Asher added, “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.”

Hanley Investment has completed the sale of $406 million in car wash-occupied investments in the past 48 months.