A North Carolina-based real estate investment firm is raising capital to try to cash in on properties that benefit from a key change in the tax code passed by President Donald Trump’s One Big Beautiful Bill Act.

Madison Capital Group launched Car Wash & Convenience Opportunity Fund LLC, seeking to raise $200M to buy up convenience stores and car washes, it announced Tuesday.

The fund’s strategy is to target properties that are eligible for 100% bonus depreciation that was made permanent through the OBBBA. Eligible properties must be purchased and placed into service after Jan. 19, 2025.

The accelerated Schedule F bonus depreciation allows owners to apply for bonus depreciation on assets such as store fuel pumps and canopies and car wash tunnels, conveyors, blowers and vacuum systems. It also applies to land improvements like driveways, signage and drainage systems. 

“Convenience stores and express car washes represent compelling essential service businesses with consistent consumer demand, multiple revenue streams and potential tax efficiency,” Madison Capital Group CEO Ryan Hanks said. “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.”

The Charlotte-based firm, which has about $4B in assets under management, will focus on states with no income taxes and growing populations. States with no income tax include Florida, Texas, Tennessee, South Dakota, New Hampshire and Washington.

The new fund is the second that Madison is raising in this space. In June, just a month before the OBBBA was signed into law, an affiliate of the firm, Madison Capital Markets, launched Madison Convenience Fund I LLC, which sought to raise $125M in investments toward convenience and gas station facilities. Properties acquired by that fund would be managed by FreshStop. That fund is now closed, according to PitchBook.

Madison Capital is one of a growing number of investors looking to leverage the bonus depreciation rule. Since it became law, there has been a boost in gas station, convenience store and car wash investment sales.

By October 2025, investment sale activity in convenience stores jumped 27% over the previous year, compared to a 17% increase in overall retail investment sales, according to data from net lease-focused real estate firm The Boulder Group.

Hanley Investment Group Real Estate Advisors arranged the sale of a new construction Quick Quack Car Wash in Yucca Valley. The car wash is located on a pad within a Stater Bros-anchored shopping center. The absolute triple-net ground lease sold for $2.04 million.

EVPs Bill Asher and Jeff Lefko represented the seller, a private partnership based in Orange County, and the buyer, a private investor from Newtown, PA.

“We procured an experienced single-tenant net-leased investor based on the East Coast who owned a portfolio of similar single-tenant retail investments across the country,” said Asher. “At the time of the closing, the net-leased investment occupied by Quick Quack in Yucca Valley was the first Quick Quack to sell in the U.S. in 2024.”

Built in 2023, the 3,596-square-foot Quick Quack Car Wash is located at 58024 Twentynine Palms Hwy. Co-tenancy at the Stater Bros-anchored shopping center includes Dollar Tree, Harbor Freight Tools, Tractor Supply Co., Jack in the Box, Pizza Hut and Subway.