Single Tenant Wawa
Exton, PA (Philadelphia MSA)
The Opportunity
Summary
- Price: $6,500,000
- Cap Rate: 5.00%
- NOI: $325,000
- Lease Type: NNN Ground Lease
- Building Size: 5,585 SF
- Parcel Size: 1.94 Acres
- Year Built: 2023
- 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 Exton, Pennsylvania. The newly constructed Wawa currently sits along E Lincoln Hwy/U.S. Route 30 Business, a main thoroughfare in Exton boasting 22,400 VPD. Wawa operates on a brand new twenty-year NNN ground lease, allowing for a handsoff passive form of ownership. The lease features ten percent rental increases every five years, including in the option periods. 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 22nd largest in the nation according to Forbes (2022).
Exton is located within the Philadelphia MSA, the 7th most populated metropolitan area in the country which is home to over 6.25 million people. Exton ranks as a top place to live within Pennsylvania and is located within the affluent Chester County, the wealthiest county in Pennsylvania. The five-mile area surrounding the property has seen tremendous growth of 26% and 29% in the population and number of households since 2010, respectively with continued growth projected through 2028. The same area boasts an average household income of $165,000.
Located less than one mile from the property, the Exton Square Mall consists of over 1,000,000 SF of retail space and is shadow anchored by a Whole Foods Market. One minute from Wawa sits the Whiteland Business Park, which is home to approximately 300,000 SF of commercial space consisting of about forty office, flex and industrial buildings. Companies in the business park include Main Line Health, West Chester School District, and Delaware County Community College among others.
Less than one-half mile down Lincoln Highway, a new residential community called Summerhill is being developed. Summerhill will consist of 180 rental townhomes and 40 garden apartments. Additionally, directly behind the Wawa, another development project consisting of 95 single-family homes (Ship Run) and 68 townhomes (Exton Walk) are under construction within the A+ rated West Chester Area School District. Exton Walk townhomes are priced starting in the mid-$500k range and will feature 3-4 bedrooms as well as 2.5-3.5 baths.
Investment Highlights:
Tenant
Snapshot
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 22nd largest in the nation according to Forbes (2022).
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.
Forbes reports that Wawa has revenues of approximately $14.93 billion in their most recent fiscal year, 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.
