Madison Capital Group Launches $200M Car Wash & Convenience Fund, Targeting Bonus Depreciation in No-Income-Tax States
CHARLOTTE, N.C. — Madison Capital Group, a Charlotte-based vertically integrated real estate investment and development firm, announced March 17, 2026, the launch of the Car Wash & Convenience Opportunity Fund, LLC, targeting $200 million in capital commitments from accredited investors.
The fund intends to deploy proceeds into convenience store and express car wash assets, with a stated focus on states that impose no individual income tax and markets demonstrating positive population growth.
Fund Strategy and Tax Structure
A central component of the fund's investment strategy is the utilization of accelerated bonus depreciation under Internal Revenue Code Section 168(k), formally known as the "additional first-year depreciation deduction." The provision allows businesses to deduct a significant portion of qualifying depreciable asset costs — including convenience store fuel pumps and canopies, car wash tunnels, conveyors, blowers and vacuum systems, and land improvements such as driveways, signage and drainage systems — in the year those assets are placed in service.
The accelerated bonus depreciation deduction was made permanent as part of the One Big Beautiful Bill Act. The provision allows deductions beyond standard Modified Accelerated Cost Recovery System (MACRS) schedules and Section 179 expensing.
"Convenience stores and express car washes represent compelling essential service businesses with consistent consumer demand, multiple revenue streams and potential tax efficiency," said Ryan Hanks, CEO of Madison Capital Group Holdings. "We believe this strategy aligns with our broader philosophy of identifying real assets in growth markets and structuring opportunities designed to optimize income and after-tax performance for investors."
Early Investor Incentives and Offering Structure
The fund is being offered exclusively to accredited investors pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933. Under Rule 506(c), general solicitation is permitted, but purchasers must meet verification requirements to confirm accredited investor status.
Investors who subscribe prior to June 1, 2026, may receive an early investor preference of up to 10% of their subscription amount. Those who subscribe on or after June 1, 2026, but prior to September 1, 2026, may receive an early investor preference of up to 6% of their subscription amount.
The offering is available through both broker-dealer and registered investment advisor channels.
Sector Context and Prior Fund Activity
The Car Wash & Convenience Opportunity Fund follows prior fund vehicles associated with operators Links Car Wash and FreshStop, which together raised more than $100 million for car wash and convenience store acquisitions, according to the firm's announcement.
About Madison Capital Group
Madison Capital Group, headquartered in Charlotte, N.C., is a vertically integrated real estate investment and development firm with approximately $4 billion in assets under management. The firm focuses on the acquisition, development, and operation of multifamily real estate, self-storage, recreational storage, marina, and commercial real estate assets nationwide. The firm states it is committed to building long-term value through disciplined investment and thoughtful development in high-growth markets, supported by a fully integrated platform that oversees execution across the real estate lifecycle.
More information is available at madisoncapgroup.com.
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