GPM Investments, LLC Gas Station & Convenience Store
The Colony, TX
The Opportunity
Summary
- Price: $4,616,000
- Cap Rate: 6.50%
- NOI: $300,068
- Lease Type: Fee Simple: Absolute NNN
- Year Built: 2000
- Building Size: 4,960 SF
- Parcel Size: 1.18 Acres
- Lease Term Remaining: 8+ Years
- Options: Four (4), Five (5) Year Options
- Rental Increases: 1.5% Annually
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to GPM Investments, (the “Property”) located in The Colony, Texas. This GPM Investments property is operating on an absolute triple-net (NNN) lease with just over 8 years of term remaining, allowing for a hands-off passive form of ownership. The lease features annual rental increases of one and one-half percent (1.50%). Additionally, the fee simple form of ownership allows for the property to be depreciated; an incentive not offered in a ground lease. GPM Investments, LLC, is a wholly owned subsidiary of ARKO Corp (NASDAQ: ARKO), a credit rated (S&P: B+) Fortune 500 company and one of the largest convenience store operators in the United States. In Q1 of 2023, ARKO Corp. sold almost 249 million gallons of fuel. With more than 3,500 total locations currently, the company is continuing to expand with the acquisition of more than 135 convenience stores and 192 dealer locations.
Investment Highlights:
Additional Available STNL Properties Leased to GPM Investments
Fast Fuels | 3901 State Highway 121 | The Colony, TX 75056 | $5,001,000 | 6.00% CAP | $300,068 NOI | 4,960 SF
Shell | 2112 O'Connor Road | Irving, TX 75061 | $2,900,000 | 6.00% CAP | $173,966 NOI | 1,950 SF
Shell | 7301 Airport Freeway | Richland Hills, TX 76118 | $1,725,000 | 6.50% | $112,114 NOI | 1,929 SF
Marathon | 3811 Grape Road | Mishawaka, IN 46545 | $4,161,000 | 6.75% CAP | $280,890 NOI | 7,690 SF
Phillips 66 | 3320 Cassopolis Street | Elkhart, IN 46514 | $2,948,000 | 7.00% CAP | $206,327 NOI | 6,401 SF
Phillips 66 | 15918 State Road 23 | Granger, IN 46530 | $2,868,000 | 6.50% CAP | $186,446 NOI | 3,178 SF
Phillips 66 | 601 S Main Street | Eufaula, OK 74432 | $2,490,000 | 7.00% CAP | $174,290 NOI | 3,336 SF
Marathon | 51969 Van Dyke Avenue | Utica, MI 48316 | $1,955,000 | 7.00% CAP | $136,842 NOI | 2,053 SF
Tenant
Snapshot
OWNERSHIP: Subsidiary to ARKO Corp. (NASDAQ: ARKO)
CREDIT RATING: B+ (S&P)
HEADQUARTERS: Richmond, VA
# OF LOCATIONS: 3,566 (total at close of Q1 2023)
• 1,531 retail sites
• 1,852 wholesale sites
• 183 fleet fueling sites
GPM Investments, LLC (“GPM”) is a wholly owned subsidiary of ARKO Corp., a Family of Community Brands, and is based in Richmond, Virginia. The operations of ARKO Corp. are primarily performed by GPM Investments, LLC. Since commencing operations in 2003, GPM has grown to operate or supply sites in thirty-four (34) states and Washington, DC and is the 6thlargest convenience store chain in the country. Their convenience stores offer a large selection of coffee, fountain drinks, candy, and snack. Additionally, each store also offers a variety of hot, fresh food options that are continuously updated to exceed their customers’ expectations. With their original locations in the Northeast and Mid-Atlantic region, GPM expanded into the Midwest when they took ownership of 42 Road Ranger convenience stores in Illinois, Iowa, and Kentucky. The stores have since been re-branded. They also acquired 161 convenience stores in Illinois, Indiana, Ohio, and Michigan that operated under the Village Pantry and Next-Door Store brands. In November 2016, GPM Investments, LLC acquired Admiral Petroleum Company which operated 137 convenience stores and 33 discount tobacco shops in Michigan and Indiana.
GPM Investments, LLC reached an important milestone in December of 2020 when their parent company entered a merger to form ARKO Corp. (NASDAQ: ARKO), a publicly traded company in the U.S. Since 2013, ARKO has completed twenty-three (23) acquisitions with their most recent acquisition being Transit Energy Group and its affiliates (“TEG”) on March 1, 2023adding 135 convenience stores and 192 dealer locations to the company’s portfolio. The company also has a pending acquisition in place for WTG Fuels Holdings LLC (“WTG”), with an expected closing in Q2 2023, which would add 24 company-operated Uncle’s convenience stores across western Texas. The acquisition would also include WTG’s GASCARD-branded fleet fueling network, including 66 proprietary fleet fueling cardlock sites strategically located in large industrial areas in West Texas and southeast New Mexico and 43 private cardlock sites. In Q3 2023, ARKO launched their newly upgraded fas Rewardsloyalty program to strengthen their relationship with customers and driving sales and profit through enrollment growth. The program currently has approximately 1.38 million members with about 30% growth in members each week. Additionally in the first quarter of 2023, same store merchandising sales excluding cigarettes increased 7.6% for the quarter compared to 0.1% in the first quarter of 2022.
