Single Tenant Wawa
Hanover, PA
The Opportunity
Summary
- Price: $5,619,000
- Cap Rate: 5.25%
- NOI: $295,000
- Lease Type: NNN Ground Lease
- Building Size: 5,585 SF
- Parcel Size: 2.07 Acres
- Year Built: 2024
- Remaining Lease Term: 20 Years
- Options: Six (6), Five (5) Year Options
- Rental Increases: 10% Every Five (5) Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to Wawa, (the “Property”) in Hanover, a borough located in the south-central region of the state of Pennsylvania. The new construction Wawa is currently being developed with an estimated store opening in December of 2024. Wawa will operate on a NNN ground lease, allowing for a hands-off passive form of ownership. The lease also features ten percent rental increases every five years, including in the option periods. Wawa sits at the signalized intersection of Baltimore Street and Clover Lane, which boast a combined 21,000 VPD.
The population and number of households within the nearby area surrounding the property has seen consistent growth since 2020 and is projected to continue growing through 2028. The growth is further seen in the demand for new residential developments. Major home builder, Ryan Homes, recently developed the High Pointe Estates, consisting of over 100 single-family homes less than one mile from the Wawa. Additionally, some of the retail along Baltimore Street (18,100 VPD) rank in the top of their respective chains, according to Placer.ai. McDonald’s, along Baltimore Street (18,100 VPD), ranks in the top 96th percentile of their chain within Pennsylvania and the top 87th percent of their chain in the United States. Additionally, the adjacent Dunkin’ ranks in the top 79th percentile of Dunkin’ locations in the United States, signifying the strength of the retail within the corridor.
Wawa is one of the dominant gas station and convenience store tenants in the northeast and is quickly gaining more traction throughout the country. With over 1,000 locations, Wawa is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023). Forbes reports that Wawa has revenues of approximately $18.9 billion in their most recent fiscal year (2023), which outranks its Pennsylvania rival convenience store, Sheetz.
Investment Highlights:
Tenant
Ownership: PRIVATE
Credit Rating: BBB (Fitch Shadow)
Headquarters: Wawa, PA
#of Locations: 1,000+
Wawa was founded in 1803 by Grahame Wood mainly as a dairy farm and it was not until 1964 that the company opened its convenience store/gas station chain and headquartered in Wawa, Pennsylvania. Wawa is a privately held company and in April of 2023 opened their 1,000th location as the company continues to expand. It is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023).
The company’s namesake is a Native American word for the Canada Goose in flight, which is seen in the company’s logo. A leader in the convenience store industry, Wawa is an everyday stop for fresh, built-to-order food, beverages, coffee, and fuel. They put an emphasis on the convenience aspect by providing self-serve coffee stations as well as touch screen food and beverage ordering. Most locations are open 24 hours a day, 365 days a year.
They currently have locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C. but are quickly expanding. Forbes reports that Wawa has revenues of approximately $18.9 billion in their most recent fiscal year (2023), which outranks its Pennsylvania rival convenience store, Sheetz. Forbes also ranks Wawa at 12th on their Halo 100 list for 2022. The Halo 100 highlights excellence in delivering positive customer experiences throughout the country. Wawa also ranked 16th in Forbes Customer Experience – All Stars list for 2024. The Customer Experience All Star list is an annual index of the brands that leave consumers most satisfied with the product, service, and treatment of customers.
