Brand New Single Tenant Wawa
Mechanicsville, VA
The Opportunity
Summary
- Price: $5,098,000
- Cap Rate: 5.10%
- NOI: $260,000
- Lease Type: NNN Ground Lease
- Building Size: 6,049 SF
- Parcel Size: 4.2 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 Mechanicsville, Virginia, a community located 5 miles northeast of Richmond. Wawa is currently being developed with an estimated store opening in late November/mid-December of 2024. Wawa will operate on a brand new 20-year triple net (NNN) ground lease. The triple-net (NNN) lease structure allows for a hands-free, passive form of ownership. Wawa’s lease will feature rental increases of 10% every 5 years in the base term and in their 6, 5-year option periods.
The property is located less than 1 mile from Exit 34A off Interstate 295, a major interstate highway that boasts 98,000 VPD. Wawa will sit at the northern quadrant of the roundabout intersection between Creighton Road (13,100 VPD) and Cold Harbor Road (7,100 VPD) where the property will benefit from excellent visibility from local traffic. The 1-mile and 3-mile area surrounding the property exhibits an average household income of over $119,000 and $105,000 respectively. Furthermore, the population and number of households has shown consistent growth since 2020 and is projected to continue growing through 2028. Mechanicsville is part of the Richmond MSA that is home to a population of over 1.34 million people (Census Reporter).
Wawa is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023). Wawa is an investment grade (Fitch Shadow: BBB) credit rated company generating $18+ billion in revenue in 2023 with over 1,000 locations. The company is currently expanding their footprint and has recently opened ~70 stores in 2024 including the first stores in new states such as Indiana, Kentucky, and Ohio, Alabama, Georgia, and North Carolina.
Investment Highlights:
Tenant
Wawa
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.
With many of their locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C., Wawa is experiencing a massive expansion. In the past year or so, Wawa has opened locations in North Carolina, Georgia, and Alabama with their most recent expansion to Kentucky, Ohio, and Indiana. 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.
