Brand New Single Tenant Wawa (BBB: Fitch) | Just Opened December 12th!
Enola, PA (Harrisburg MSA)
The Opportunity
Summary
- Price: $5,784,000
- Cap Rate: 5.10%
- NOI: $295,000
- Lease Type: NNN Ground Lease
- Building Size: 5,585 SF
- Parcel Size: 3.95 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 Enola, Pennsylvania, a town which is part of the Harrisburg MSA and home to over 600,000 residents. Wawa operates on a brand new 20-year NNN ground lease, allowing for a hands-off passive form of ownership. The lease features ten percent (10%) rental increases every five years, including in the option periods. The brand-new Wawa is located along Metropolitan Way just off US-11/US-15 (15,000 VPD) and 1st Street. Wawa sits just ½ mile off Exit 65 of I-81, a major north-south interstate highway that boasts 73,000 VPD. The property can be easily accessed as it sits directly southwest of the cloverleaf interchange between I-81 (73,000 VPD) and US-11/US-15 (15,000 VPD). The 5-mile area surrounding the property boasts excellent demographics with a population of nearly 135,000 and over 57,000 households with an average household income of $103,000. Additionally, the population and number of households within a 1-mile radius of the property have grown by 8.54% and 7.28% since 2020 with growth projected to continue into 2029 at 11.96% and 12.61% respectively. In 2022, The Reserve at River’s Edge added 260-units adjacent to Wawa. There are also numerous lots available for sale and development into financial institutions and quick-service restaurants surrounding the property. Many of the retailers within Enola rank at the top of their respective chains, bolstering the strength of the retail corridor. GIANT ranks in the top 90th percentile within the U.S., McDonald’s ranks in the top 91st percentile in Pennsylvania (81st in U.S.), and Dunkin’ ranks in the top 89th percentile in the U.S. cementing them as the top performing retail locations in the country. The Summerdale Plaza also ranks in the top 79th percentile of Shopping Centers in the U.S. (Placer.ai). 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). Wawa primarily has locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C. but have been quickly expanding in 2024 to states including Alabama, Georgia, Ohio, Kentucky, and North Carolina.
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 with over 1,000 locations and growing. It is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023). Every new Wawa generates at least 35 new local long-term jobs per store and becomes a committed community partner supporting local causes and raising millions of dollars chainwide through in-store fundraising campaigns that benefit National and Local non-profit partners serving in the community.
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.
Wawa primarily has locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C. but have been quickly expanding in 2024 to states including Alabama, Georgia, Ohio, Kentucky, and North Carolina. Wawa plans to open more than 70 stores in Alabama, Georgia, and North Carolina in 2024. 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. 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.
