Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, has announced that the firm arranged the sale of a new-construction, single-tenant property occupied by Fast5Xpress Car Wash in Ontario, CA, adjacent to the Ontario Mills Mall, one of the top shopping and tourist destinations in California. The sale price was $3.5 million for the new 35-year absolute triple-net ground lease.
“We procured an all-cash, 1031-exchange buyer based in Southern California and achieved a premium cap rate and pricing due to the 35-year initial lease term and centralized location adjacent to Ontario Mills,” said Bill Asher, Hanley’s executive vice president.
Fast5Xpress is a fast-growing express car wash company in Southern California. The chain currently has 20 locations open and operating, with two more under development.
“Express car washes are one of the most profitable tenants in the net-lease sector, with margins between 50 percent to 60 percent. As a result, we expect this segment will continue to experience steady demand from investors in 2023,” Asher added.