GPM Disposition PortfolioLocation Intelligence & Lease Summary
GPM Disposition PortfolioLocation Intelligence & Lease Summary
309 E State St, Cheboygan, MI
| Tenant / d/b/a | Marathon |
| Guarantor | Fas Mart (GPM Investments) |
| Lease commencement | Oct 09, 2007 |
| Lease expiration | Sep 30, 2032 |
| Remaining term | 6.3 yrs |
| Lease term (months) | — |
| Annual base rent | $101,554 |
| Base rent $/SF | $52.29 |
| Rent at expiration | — |
| Expiration rent $/SF | — |
| Renewal options | 1/1 |
| Notice date | Mar 04, 2032 |
| Year built | 1970 |
| Building SF | 1,942 |
| Land area (acres) | 0.64 |
| Pre G&A CFC | 3.75x (2024) |
| Lease status | Active |
Cheboygan is a Lake Huron port and gateway to the Inland Waterway, drawing boating and outdoor-recreation tourism beyond its resident base.
The location score above reflects resident-market real-estate fundamentals and does not incorporate seasonal or destination demand; consider this note alongside the store-level coverage (CFC) when assessing the asset.
| Metric | 1 mi | 3 mi | 5 mi |
|---|---|---|---|
| Population | 0 | 6,744 | 6,744 |
| Households | 0 | 2,897 | 2,897 |
| Pop. density (/sq mi) | 0 | 239 | 86 |
| Avg HH income | — | $62,323 | $62,323 |
| Poverty rate | — | 15.1% | 15.1% |
| Bachelor's+ | — | 19.3% | 19.3% |
| Median home value | — | $142,340 | $142,340 |
| Median rent | — | $746 | $746 |
| Median age | — | 47 | 47 |
| Owner-occupied | — | 73.7% | 73.7% |
309 E State St is a 1,942 SF Marathon-branded convenience store in Cheboygan, Michigan, operated by GPM Investments under a lease running through September 2032, offering 6.3 years of remaining term. The site carries an average location grade of 42/100, reflecting modest traffic, a thin trade area, and a rural nonmetro market. This is a secondary-market net lease play where credit quality and lease structure carry more weight than location fundamentals.
The 3-mile trade area holds 6,744 residents at a low density of 239 per square mile, with average household income of $62,323 and a poverty rate of 15.1%, both indicating a working-class consumer base with limited discretionary spending. Population and density figures are identical at both 3- and 5-mile rings, confirming a small, largely static catchment. These demographics are adequate for a convenience and fuel stop but do not support aggressive rent growth assumptions.
Cheboygan County is classified as nonmetro, non-adjacent, with an unemployment rate of 11.9%, well above national norms, and a modest base of 759 total establishments employing 4,556 workers. Modest population growth of 1.5% from 2020 to 2024 signals stability rather than expansion. The market presents limited alternative tenant demand, making re-tenanting risk a meaningful underwriting consideration at lease expiration.
The site sits 0.01 miles from a major road with an AADT of 5,898 vehicles per day, which is below average for fuel retail and constrains upside in fuel volume. A Walk Score of 68 indicates moderate accessibility, and 20 nearby restaurants within one mile suggest a functioning retail corridor. Three competing gas stations within one mile, including two within half a mile, create meaningful competitive pressure on fuel margins.
FEMA designates the site Zone X, indicating minimal flood exposure. State-level crime data is unavailable, limiting granular safety underwriting. No additional environmental or natural hazard flags were identified, though underground storage tank liability typical of 1970-era fuel sites warrants standard Phase I and Phase II due diligence.
With 6.3 years of remaining term, a buyer faces a near-term rollover decision by March 2032, when the single five-year renewal option must be exercised. Current rent of $101,554 annually ($52.29/SF) provides in-place income, though the absence of disclosed rent at expiration or escalation data limits visibility into long-term cash flow growth. The guarantor, GPM Investments as a subsidiary of Nasdaq-listed ARKO Corp., the sixth-largest U.S. convenience store operator with roughly 3,500 locations, provides institutional-grade credit backing that materially offsets the location's secondary market profile.
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