Madison Capital Group Launches $200M Car Wash, Convenience Fund Targeting Bonus Depreciation

Madison Capital Group, a real estate investment and development firm, has launched the Car Wash & Convenience Opportunity Fund, LLC, targeting $200 million in capital commitments from accredited investors.

The fund intends to use proceeds to invest in convenience store and express car wash assets, with a focus on no-income-tax states and markets showing positive population growth.

“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, chief executive officer of Madison Capital Group Holdings.

A key component of the fund’s strategy is the potential utilization of accelerated “Schedule F” bonus depreciation, which allows owners to claim deductions on qualified assets like convenience store fuel pumps and canopies; car wash tunnels, conveyors, blowers and vacuum systems; and land improvements like driveways, signage and drainage systems.

Rather than depreciating those asset costs over several years, the 100% bonus depreciation deduction made permanent as part of The One Big Beautiful Bill Act allows businesses to deduct the deduct the full cost in the year of acquisition, reducing taxable income and increasing near-term cash flow.

Investors who subscribe for interests prior to June 1, 2026, may receive an early investor preference of up to 10% of their subscription amount. The incentive is available to both broker-dealer and registered investment adviser clients. Investors who subscribe on or after June 1, 2026, but prior to Sept. 1, 2026, may receive an early investor preference of up to 6% of their subscription amount.

“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,” added Hanks.

Car Wash & Convenience Opportunity Fund is being offered exclusively to accredited investors pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933.

Earlier this year, Madison Capital Group closed its eighth and ninth bonus depreciation-focused investment funds, which collectively raised more than $100 million in capital.

Madison Capital Group, headquartered in Charlotte, N.C., manages approximately $4 billion in assets focused on multifamily, self-storage, recreational storage, marina, and commercial real estate assets nationwide.

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