For nearly two decades, PPR Capital Management has built a track record in distressed residential mortgage investment, acquiring non-performing loans at significant discounts and resolving assets strategically. In recent years, PPR has expanded into commercial multifamily properties and build-to-rent communities, advancing its mission of being part of the solution to the housing crisis in the US.
The PPR Opportunity Fund II represents the application of PPR’s proven investment framework to a fundamentally different strategy: operational businesses backed by real estate, designed to complement our existing platform while offering investors access to a distinct return profile.
A Strategic Evolution
The Opportunity Fund II was launched in partnership with Olympus Pines, one of the largest developers and operators of Tommy’s Express Car Washes with over 100 planned projects across 10 states, and finances ground-up development of car wash locations in high-growth U.S. markets. Ensuring consistency across facilities, the strategy also selects proven, stabilized locations, all positioned for acquisition by institutional buyers seeking standardized, cash-flowing assets.
The investment discipline that enabled us to profitably resolve distressed debt, through detailed market analysis, conservative underwriting and active surveillance, applies equally to evaluating operational businesses with strong unit economics and clear exit pathways.
Understanding the Value Creation Model
The car wash industry has transformed into a professionally managed sector, generating over $15 billion annually. Modern operators like Tommy’s Express achieve predictable recurring revenue through subscription models, with technology enabling throughput of up to 200 vehicles per hour and EBITDA margins near 45%.
The investment thesis centers on institutional valuation dynamics. Individual car wash locations typically trade at 12–14 times EBITDA, while scaled portfolios of 50 or more locations command multiples of 16–24 times or higher from institutional buyers seeking consolidated platforms with proven management.
While investors hold equity in seven specific properties across six states, returns benefit from the exit multiple applied to Olympus Pines’ entire portfolio. This structure provides exposure to institutional-grade valuations typically inaccessible at the individual asset level.
A Standout Asset
Among the fund’s seven locations, one site stands out as a particularly significant addition. Tommy’s Express’ most visited location in Pennsylvania was acquired into the Fund as a fully operational, stabilized asset that enhances immediate cash flow for investors while the remaining portfolio sites progress through development and ramp-up.
The site features a cleaning system capable of washing up to 200 cars per hour using 80% recycled water, best-in-class conveyor technology and advanced license plate recognition. Its mobile application allows customers to manage memberships, operate on-site self-service vacuums and pay for individual washes seamlessly.
The Risk-Return Profile
The Opportunity Fund II is a capital appreciation strategy designed for long-term growth, characterized by ramping cash flow as locations stabilize and an anticipated exit at the portfolio level.
- Returns: Investors earn a 10% accruing preferred return, with total targeted returns of 18–24%+.
- Risks: Development execution, operational performance across locations, market timing for exit and limited liquidity until portfolio sale.
- Advantages: A tax-efficient structure with accelerated depreciation generating passive losses historically exceeding 75% of invested capital in year one, exposure to portfolio-level valuation multiples and diversification through operational real estate.
- All sites are built to be LEED certified, with water reclamation systems that appeal to both consumers and local municipalities.
Current Performance
Early results validate the thesis. The portfolio’s newest location established a franchise record with 1,191 opening weekend memberships, and the location continues to lead the state in visit volume. Two additional sites, Charleston, South Carolina and San Antonio, Texas, both opened in 2025 and are approaching full stabilization. Four more locations across Virginia, New Jersey, South Carolina, and Nebraska are expected to open in 2026-2027, completing the full seven-site portfolio.
All sites are selected through a rigorous evaluation process with three non-negotiable thresholds:
- Located within 500 feet of a regional or national retail brand
- Features multiple points of entry, including corner or cross access
- Free of significant competition within a half mile
Building a Real Estate Alternatives Platform
The Opportunity Fund II reflects PPR’s evolution as capital stewards. Distressed mortgage investing remains central to our business as we continue to scale through multifamily and build-to-rent assets, but our mandate extends to identifying compelling opportunities across the broader real estate-backed spectrum.
As those opportunities emerge, we will continue expanding our platform, always maintaining our commitment to real estate-backed structures, institutional-quality due diligence and transparent investor communication.
The Opportunity Fund II is designed for qualified purchasers who are seeking capital appreciation over immediate income, comfortable with development and operational risk, looking to benefit from tax-efficient structures and able to commit long-term capital through a 5–7 year hold period.
