Phoenix-Based Owner and Operator Sells Super Star Car Wash Near USC for $6.2 Million in Los Angeles

SRS Real Estate Partners has completed the $6.2 million sale of a Super Star Car Wash property located at 1640 W. Martin Luther King Jr. Boulevard in Los Angeles, approximately one mile from the University of Southern California. The seller was a Phoenix-based owner and operator, and the buyer was a Los Angeles-based private investor completing a 1031 exchange, the firm announced July 28.

Deal Structure and Property Details

The 6,947-square-foot property sits on 0.56 acres and was renovated in 2023. The transaction implies a price of approximately $893 per square foot — a figure consistent with single-tenant automotive net-lease assets, where value is driven primarily by income, lease term, and replacement cost rather than building shell. The property carries a corporate-guaranteed absolute triple net lease with approximately 20 years remaining, meaning the tenant — Super Star Car Wash's corporate entity — is responsible for taxes, insurance, maintenance, and capital repairs, leaving the landlord with no operating obligations.

SRS Capital Markets Executive Vice Presidents and Managing Principals Calvin Short and Aron Cline represented the seller in the transaction.

"Well-located car wash properties in Los Angeles continue to attract strong investor interest due to their combination of durable cash flow, bonus depreciation eligibility, high barriers to entry, and healthy replacement cost. With limited opportunities for new development and consistent consumer demand, these assets offer both stable income and long-term appreciation potential," Short said.

Location and Demographics

The property is situated along Martin Luther King Jr. Boulevard, a major east-west thoroughfare serving South Los Angeles. The surrounding trade area includes national retailers such as Target, Ralphs, Whole Foods, and Ross Dress for Less. More than 1.25 million residents and approximately 514,400 employees are located within a five-mile radius of the site, underscoring the density of the infill corridor.

Urban Los Angeles presents significant entitlement, environmental, and neighborhood hurdles for new car wash development — factors that contribute to the replacement cost argument cited by the brokerage team.

1031 Exchange and Net-Lease Market Context

The buyer's use of a 1031 exchange reflects tax-motivated capital seeking long-term passive income and equity preservation. Car wash properties can also qualify for accelerated or bonus depreciation on certain equipment and improvements under current U.S. tax rules, a feature that adds to their appeal for investors seeking tax-efficient yield alongside a 1031 deferral strategy.

Service-oriented retail tied to daily consumer activity — including auto care — has demonstrated comparative resilience in recent market cycles, even as other retail formats have faced headwinds from e-commerce substitution. The long lease term and corporate guarantee on this asset position it as a bond-like income vehicle in a market environment where capital has increasingly prioritized durable cash flow over speculative underwriting.

SRS Capital Markets Activity

SRS Real Estate Partners reported that its capital markets division has completed more than $1.6 billion in deal volume year-to-date in 2026, comprising more than 400 transactions across the country. The firm currently has in excess of 900 properties actively on the market with an aggregate market value surpassing $4.3 billion.

Founded in 1986, SRS Real Estate Partners is headquartered in Dallas and operates 30 offices nationwide, providing commercial real estate services across retail, industrial, and capital markets.

Sources

SRS Real Estate Partners Press Release — Super Star Car Wash Near USC Sells for $6.2 Million