PALM DESERT, Calif. — Hanley Investment Group Real Estate Advisors recently announced that the firm has completed the sale of a new construction, single-tenant, retail pad property occupied by Quick Quack Car Wash, according to a press release.
The new wash is located at the newly developed Monterey Crossing shopping center in Palm Desert, California, at the Interstate 10 and Monterey Ave. freeway interchange.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer and seller, Fountainhead Development of Newport Beach, California.
The buyer, a private investor based in the Boise, Idaho, metro area, was also represented by Asher and Lefko.
The new single-tenant Quick Quack Car Wash is located at 73320 Dinah Shore Dr.
The 3,436-sq. ft. express carwash building sits on 1.22 acres.
The store is scheduled to open in the first half of 2022.
The sale price was $3,010,000 for the absolute triple-net ground lease, which represented a record-low cap rate of 4.75%.
“We procured an all-cash 1031 exchange buyer at the asking price, prior to formally marketing the property,” Asher says. “We were able to procure a buyer on a pre-sale basis, closing escrow prior to completion of construction and the tenant open for business and paying rent. The sale represented one of the record-low cap rates for a Quick Quack Car Wash nationwide.”
Headquartered in Roseville, California, Quick Quack now owns and operates over 140 locations across Arizona, California, Colorado, Texas and Utah, with continued growth throughout these regions.
Professional Carwashing & Detailing magazine ranked the chain #4 in its list of the “Top 50 U.S. Conveyor Carwashes” in 2021 and Phoenix New Times ranked it #1 “Best Car Wash in 2020.”
According to Lefko, express carwashes offer a service-based, internet-resistant and recession-proof investment, which is poised for long-term success.
The carwash business is a highly segmented $15 billion industry that is growing at 3.2% annually.
Monterey Crossing is strategically located at the signalized intersection of Monterey Ave. and Interstate 10 freeway, one of the most centrally located and heavily visited interchanges (110,000 cars per day) in the Desert Cities area of Southern California and a primary east/west arterial connecting to Los Angeles to San Bernardino County, Riverside County and Phoenix, Arizona.
Monterey Ave. (37,000 cars per day) is the major north/south connector between the freeway, resorts and high-income communities of Palm Desert, Rancho Mirage and Cathedral City.
Monterey Crossing benefits from freeway-visible pylon signage and is the first Palm Desert center to be approved for freeway signage, says Asher.
National tenants located at the intersection of Monterey Ave. and Interstate 10 include Costco, Home Depot, Kohl’s, Sam’s Club, Walmart, 99 Cents Only, Ashley HomeStore, JOANN Fabrics and Crafts, PetSmart and Regal Cinemas.
Palm Desert is the geographic center of the Coachella Valley, a fast-growing region of Southern California.
Within a three-mile radius of Monterey Crossing, the population increased by 53% between 2000 and 2020 and is projected to grow an additional 7.4% by 2025.
The average household income is currently $106,000.
There are more than 4,500 new residential units planned or under construction within a 2.5-mile radius of Monterey Crossing.“In 2022, we anticipate more developers and shopping center owners seeking to implement a break-up sale strategy to capitalize on the high demand for single-tenant and multi-tenant retail pad product at premium pricing,” said Asher.
Hanley Investment Group has sold more than $403 million in retail properties in the Inland Empire in the last 36 months.