Hesperia Quick Quack Car Wash net lease selling for $3.4 Million

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Hesperia Quick Quack Car Wash net lease selling for $3.4 Million
Photo credit: Highland Partners

HESPERIA – The Hesperia Quick Quack Car wash, constructed in 2021, is available for purchase with a 20 year absolute net lease for $3.4 Million. The absolute net lease agreement allows the owner to collect an annual $160,000 net operating income while Quick Quack Car Wash will be responsible for all property related expenses including the rent, taxes, insurance, and building maintenance.

According to a U.S. Car Wash Services Market Size & Growth Report, 2030 the car wash services market size was estimated to be valued at USD 14.67 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030. 

“The growing focus of consumers toward vehicle maintenance, and the continuous harm to car body caused by dirt, particulate matter, bird droppings, acid raindrops, and salt deposits during the frost months has increased demand for car wash services in the U.S.” says the report.

 






 

The sale of the Quick Quack Car Wash, located at 18659 Bear Valley Rd, does not include the business – the acquisition is for an absolute triple net lease. 

Absolute net leases require no landlord responsibility for expenses, making them attractive to investors who desire a passive income stream. While other expense structures require the landlord to pay for some or all the building expenses, absolute net leases require the tenant to pay these expenses directly.

According to the listing real estate company Highland Partner, the property sits on a 1 acre lot next to an Aldi, AutoZone, Wendy’s and Planet Fitness. The 20 year lease agreement allows for a 10% rent increase every 5 years and four 5-year options to extend the lease.

Cap rate for the investment is 4.70%

A lower cap rate is generally associated with a safer or less-risky investment, while a higher cap rate will be associated with more risk. Many advisors feel that a high cap rate is better, or that a good cap rate is between 5% and 10%.

RELATED: UPDATE – Local investor purchases net lease Hesperia Planet Fitness for $5.24M

Quick Quack Car Wash, headquartered in Roseville, CA, owns and operates over 160 locations across the US. The company offers unlimited car wash memberships, free vacuums and has plans to expand into additional regions and states in the near future.

The property area, located near Victor Valley College, has a daytime population of 34,485. According to Highland Partners, Hesperia has experienced growth over the last decade with the population increasing over 10% since 2010 and a 35% increase in single-family residential permits issued by the city last year.

A typical commercial loan requires at least a 20% – 35% downpayment in order to qualify for the purchase of a property. 

For more information about the purchase of the net lease Quick Quack Car Wash visit

https://www.crexi.com/properties/969005/california-quick-quack-express-car-wash

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