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Shopping Auto Center

Citgo

1363 S Main St, Fall River, MA 02724

Listing Price: $4,609,000

Gross SF
2,226
Rentable SF
2,226
Price/Gross SF
$2,070.53
Lot Size
0.48 acres
Year Built
2003

Investment Overview

The Property consists of a Citgo Gas Station with eight fueling stations and a convenience store, which also houses a second tenant, Honey Dew Donuts. The station is situated at the signalized intersection of five roads that sees a combined traffic count of more than 30,000 vehicles per day. The location features a total of four curb cuts, providing easy ingress and egress to the property, and a lighted pylon sign at the southwestern tip of the site provides good visibility from every direction. The property is in a densely populated area, with more than 135,000 residents within five miles of the site. Fall River is within easy commuting distance to Providence, RI, just 18 miles east of the city, and is also commutable to Boston, which is just over an hour north. The MBTA is working to extend commuter rail service to Boston by way of a station currently under construction in Fall River, which is slated for completion in 2023. Citgo has nine years of remaining term on a 20-year lease, and Honey Dew has recently renewed their lease for another seven years, with a tenant option to extend that term by an additional three years. The Citgo lease features healthy 1.5% annual increases, providing a solid hedge against inflation, and the Honey Dew lease calls for rent that is the greater of $59,498 or 12% of gross sales for any given year. There is a 10% increase in the minimum annual rent that Honey Dew pays in year 6 of the current term. The landlord is only responsible for paying the real estate taxes on the property. Citgo is responsible for all insurance and maintenance at the property, including roof, structure, parking lot and the HVAC system, making this the ideal opportunity for an investor looking for a stable, passive investment.

Investment Highlights

  • 9+ years remaining term from primary tenant
  • Located at 5-way intersection, ideal for a gas station
  • Densely Populated area with more than 135,000 residents within 5 miles of the site
  • Citgo's annual rent increases provide strong hedge against inflation
  • Percentage rent from Honey Dew provides substantial upside
  • More than 30,000 vehicles per day pass the property
  • Easy commuting distance from the region's two largest cities
  • Zero day-to-day management responsibilities

Exclusively Listed By

Financing By

Shopping Auto Center

Citgo

Listing Price: $4,609,000

Gross SF
2,226
Rentable SF
2,226
Price/Gross SF
$2,070.53
Lot Size
0.48 acres
Year Built
2003

Investment Highlights

  • 9+ years remaining term from primary tenant
  • Located at 5-way intersection, ideal for a gas station
  • Densely Populated area with more than 135,000 residents within 5 miles of the site
  • Citgo's annual rent increases provide strong hedge against inflation
  • Percentage rent from Honey Dew provides substantial upside
  • More than 30,000 vehicles per day pass the property
  • Easy commuting distance from the region's two largest cities
  • Zero day-to-day management responsibilities

Investment Overview

The Property consists of a Citgo Gas Station with eight fueling stations and a convenience store, which also houses a second tenant, Honey Dew Donuts. The station is situated at the signalized intersection of five roads that sees a combined traffic count of more than 30,000 vehicles per day. The location features a total of four curb cuts, providing easy ingress and egress to the property, and a lighted pylon sign at the southwestern tip of the site provides good visibility from every direction. The property is in a densely populated area, with more than 135,000 residents within five miles of the site. Fall River is within easy commuting distance to Providence, RI, just 18 miles east of the city, and is also commutable to Boston, which is just over an hour north. The MBTA is working to extend commuter rail service to Boston by way of a station currently under construction in Fall River, which is slated for completion in 2023. Citgo has nine years of remaining term on a 20-year lease, and Honey Dew has recently renewed their lease for another seven years, with a tenant option to extend that term by an additional three years. The Citgo lease features healthy 1.5% annual increases, providing a solid hedge against inflation, and the Honey Dew lease calls for rent that is the greater of $59,498 or 12% of gross sales for any given year. There is a 10% increase in the minimum annual rent that Honey Dew pays in year 6 of the current term. The landlord is only responsible for paying the real estate taxes on the property. Citgo is responsible for all insurance and maintenance at the property, including roof, structure, parking lot and the HVAC system, making this the ideal opportunity for an investor looking for a stable, passive investment.

Exclusively Listed By

Financing By

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