
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.