MANHEIM, PA—Marcus & Millichap brokered the sale of a 15-year Sheetz ground lease located in Manheim, PA, according to Brenton J. Baskin, regional manager of the firm's Philadelphia office. The asset sold at list price, $3 million.
The site is at 820 Lancaster Rd., Manheim, PA, directly across from the Manheim Auto Auction.
Steve Garthwaite, Derrick Dougherty and Mark Taylor, investment specialists of the TZD Retail team in Marcus & Millichap's Philadelphia office, had the exclusive listing to market the property on behalf of the seller. This closing marks the team's ninth Sheetz transaction. The buyer was secured and represented by Lawrence Gariano and David Beyel, investment specialists in Marcus & Millichap's Philadelphia office.
“Both the buyer and seller came to the table with different strategies,” says Garthwaite. “The developer was looking to pay down debt and invest in future projects, while the buyer was preserving equity in a 15-year corporate-backed lease.”
The triple-net property was sold pre-construction with approved development to include Sheetz, a town center and hotel, part of a three phase development plan. The 6,103-square foot convenience store is part of the company's new prototype launch that includes 24-hour service and car wash. Sheetz is scheduled to open for business in September 2016.
“These types of transactions highlight the strong appeal for ground leases of well- respected convenience store brands. Brands such as Sheetz, Royal Farms and Wawa have such a strong demand we are noticing these rates have been compressing over the past 15 months compared to the rest of the net-leased market,” says Garthwaite.
CORRECTION, 9/27/2016, 9:57 a.m.: This article has been updated to include the street address of the property.
MANHEIM, PA—Marcus & Millichap brokered the sale of a 15-year Sheetz ground lease located in Manheim, PA, according to Brenton J. Baskin, regional manager of the firm's Philadelphia office. The asset sold at list price, $3 million.
The site is at 820 Lancaster Rd., Manheim, PA, directly across from the Manheim Auto Auction.
Steve Garthwaite, Derrick Dougherty and Mark Taylor, investment specialists of the TZD Retail team in Marcus & Millichap's Philadelphia office, had the exclusive listing to market the property on behalf of the seller. This closing marks the team's ninth Sheetz transaction. The buyer was secured and represented by Lawrence Gariano and David Beyel, investment specialists in Marcus & Millichap's Philadelphia office.
“Both the buyer and seller came to the table with different strategies,” says Garthwaite. “The developer was looking to pay down debt and invest in future projects, while the buyer was preserving equity in a 15-year corporate-backed lease.”
The triple-net property was sold pre-construction with approved development to include Sheetz, a town center and hotel, part of a three phase development plan. The 6,103-square foot convenience store is part of the company's new prototype launch that includes 24-hour service and car wash. Sheetz is scheduled to open for business in September 2016.
“These types of transactions highlight the strong appeal for ground leases of well- respected convenience store brands. Brands such as Sheetz, Royal Farms and Wawa have such a strong demand we are noticing these rates have been compressing over the past 15 months compared to the rest of the net-leased market,” says Garthwaite.
CORRECTION, 9/27/2016, 9:57 a.m.: This article has been updated to include the street address of the property.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
