Black car going through a Tidal Wave car wash in the United States, after completing a sale-leaseback with W. P. Carey (WPC)

Sale-leaseback with large car wash operator

Tidal Wave

W. P. Carey provides sale-leaseback capital to fund company's expansion plans

Tenant Description: Founded in 1999, Tidal Wave is the sixth largest car wash operating platform in the United States with over 150 locations across 21 states.

Total Investment: $48 million

Transaction Type: Sale-leaseback*

Location: U.S. (7 states)

Facility Type: 11 state-of-the-art express car wash facilities

In May 2023, W. P. Carey closed the $48 million sale-leaseback of eight completed and three to-be-completed express car wash facilities located across the U.S. in Alabama, Georgia, New York, Minnesota, Iowa, South Dakota and Mississippi. The portfolio is triple-net leased on a master lease to Tidal Wave for a 20-year term with fixed annual rent increases. Tidal Wave is the sixth largest car wash operator in the U.S. and was acquired in 2020 by a leading San Francisco-based private equity firm. The car washes are located in attractive areas largely insulated from competition and benefiting from strong vehicle traffic and proximity to big box retail stores. Proceeds from the transaction will be used to repay development costs and support Tidal Wave’s expansion plans. The transaction marked W. P. Carey’s first investment in car washes—a sector benefiting from good cash flow dynamics and strong rent coverage.


*In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.