GRAND TERRACE, Calif./LODI, Calif. — Hanley Investment Group Real Estate Advisors announced in a press release 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, 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 Rd. in the city of Grand Terrace, California, in San Bernardino county for $2.7 million.
The carwash is located on a 1.35-acre outparcel to a Stater Bros. Market-anchored shopping center at the hard corner of Michigan St. 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, CALIFORNIA
In the second transaction, Asher and Lefko with Hanley Investment Group represented the seller in the sale of a new Quick Quack Car Wash ground lease at 515 S Lower Sacramento Rd. in Lodi, California, in 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 carwash is located on a 1.0-acre outparcel to a Raley’s grocery-anchored shopping center near the signalized intersection of S Lower Sacramento Rd. — a major traffic thoroughfare and a commercial corridor — and W Lodi Ave. (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 Rd. 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, California, 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,” stated the press release.
Several major companies are located in Lodi, California, 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 carwash 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, noted the press release.
Founded in 2004, Quick Quack is one of the largest and fastest-growing express format carwash operators in the U.S. with over 230 locations across California, Texas, Arizona, Utah and Colorado.
In June 2024, KKR and Quick Quack announced in a press release 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 carwash 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 carwash 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 carwash over a do-it-yourself method, further driving demand.
“Express carwashes 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. In certain markets, top-performing carwashes have been backfilling vacant pads, former shop buildings and junior box spaces and are becoming quasi ‘anchors’ to a shopping center. These carwashes can bring tens of thousands of cars to shopping centers annually. Based on the recent expansion of numerous carwash operators nationwide (including Quick Quack), we expect to see a significant increase in the number of single-tenant net-lease carwash properties for sale over the next 18 months.”
Hanley Investment Group has completed the sale of $406 million in carwash-occupied investments in the past 48 months.