Investment Overview

New 20-Year Corporate Lease with Increases – The Tenant, Wawa Inc., is subject to a new 20-year NNN ground lease set to commence in June of 2025. The lease features 10% rental increases every five years beginning in year 11, and continuing through each of the six, five-year option periods, providing an excellent hedge against inflation. Wawa will operate in a 5,585-square-foot store with six fueling pumps. The Tenant boasts an investment grade shadow rating of “BBB+” by Fitch. 2.21-Acre Signalized Corner Along Route 1 – Wawa is situated upon a prominent 2.6-acre corner parcel at the signalized intersection of Route 1/Belair Road and Putty Hill Avenue. The property is highly visible and accessible to 44,822 vehicles per day. Belair Road is a major north–south route connecting to I-695/Baltimore Beltway (134,122 VPD), Baltimore City, and Washington, DC. The road parallels Interstate-95 at this segment, and serves as the submarket’s commercial corridor. The property is one intersection south of Route 1’s intersection with Route 43/White Marsh Boulevard which sees a combined 83,817 vehicles per day. Quality Commercial Corridor – Wawa benefits tremendously from its location along the Route 1 commercial corridor. This corridor features +/- 2 million square-feet of commercial space and has one of the largest concentrations of retail northwest of Baltimore, second only to the White Marsh area which contains the regional mall. This segment is anchored by Walmart to the immediate west, BJ’s to the north, and Giant and Weis-anchored centers to the south. Together, these four anchor retailers combine for 4.7 million annual customer visits and generate consistent daytime traffic. Limited Competition – Wawa will benefit from limited large format gas and c-store competition along this segment of Route 1. While there is a Royal Farms (1-mile south, inside the Beltway) and several small format gas stations within one-mile, the nearest large format competition to the north is 3.5 miles away where both Royal Farms and Wawa have locations. Wawa will capture southbound travelers towards Interstate-695 (69,400 VPD), as well as compete for the corridor’s existing customer base. Highly Dense, Affluent Baltimore County Submarket – Nottingham is a highly dense and affluent submarket 15 miles northeast of Baltimore. Its convenient location to demand drivers in both Baltimore and Washington, D.C., and outstanding access to I-95 and I-695 make it a desirable suburban community. The submarket features exceptional population density with 125,291 residents within three-miles and 292,384 within five-miles. The average household income also exceeds $100,000 in this area. Best-In-Class Retailer – Wawa, Inc. is a best-in-class tenant within the highly sought-after convenience sector and a tier one retailer that is both online and recession resistant. Wawa operates over 1,000 locations in the Mid-Atlantic and Florida and reported more than $18.8 Billion in Gross Annual Sales Revenue. Wawa is currently #2 on CSP Magazine’s “Fuels 50” list which ranks convenience store brands by Market efficiency, as well as Food & Wine Magazine’s America’s Best Convenience Stores, 2nd only to Texas-based Buc-ee’s on both. In 2023, Forbes Magazine, ranked the company number 20 in its list of America’s Largest Private Companies. The company maintains a shadow credit rating from Fitch which is investment grade.