LOS ANGELES—L.A. Car Wash Corp. has purchased four properties in the past three months for a total of $22.4 million. The four purchases were made as the upleg in a 1031 exchange after L.A. Car Wash Corp. sold its Los Angeles Car Wash facility in July of this year. Three of the properties purchased were Walgreens Pharmacies and the fourth is a medical office facility located in Greeley, CO.

“The properties purchased were all triple-net lease, meaning no owner responsibility, at a 6% cap rate, which is very good in this environment, and all stores were BBB credit rating,” Rod Delson, SVP with NAI Capital, tells GlobeSt.com. Delson represented the buyer in all four transactions, and represented it in the sale of the car wash in July.

The two most recent purchases made include a Walgreens Pharmacy in Tehachapi, CA, and a medical office property in Fresenius Medical Care Dialysis Center in Greeley, CO. L.A. Car Wash Corp. purchased the Walgreens property for $5.7 million from Charles Gibbs Investments. Located at 1091 West Tehachapi Blvd in Tehachapi, CA, the property is 14,560 square feet. L.A. Car Wash purchased the second property, Fresenius Medical Care Dialysis Center, for $3.7 million from Embree Capital Markets Group. The 7,660-square-foot property is located at 1212 9th Street in Greeley, CO.

“There was a lot of completion for credit-quality acquisitions,” says Delson about the negotiations process. “Since we were an all-cash buyer, we were in a good position to get the properties we wanted. We have completed all of our upleg acquisitions at this point.” He adds that there were the usual challenges in completing the upleg of a 1031 exchange, including due diligence for each of the properties.

The other two purchases were Walgreens-leased properties located in Plano, TX, and Federal Way, WA. The purchases totaled $11.2 million. L.A. Car Wash Corp. purchased the 14,490-square-foot El Paso, TX property for $4.4 million from SJW Land Co., and it purchased the 14,446-square-foot Federal Way, WA, property for $6.8 million from 28817 Military Road South LLC.