GPM Disposition PortfolioLocation Intelligence & Lease Summary
GPM Disposition PortfolioLocation Intelligence & Lease Summary
111 S Cedar St, Kalkaska, MI
| Tenant / d/b/a | Next Door Store |
| Guarantor | Fas Mart (GPM Investments) |
| Lease commencement | Oct 09, 2007 |
| Lease expiration | Dec 31, 2027 |
| Remaining term | 1.5 yrs |
| Lease term (months) | — |
| Annual base rent | $158,678 |
| Base rent $/SF | $71.70 |
| Rent at expiration | — |
| Expiration rent $/SF | — |
| Renewal options | 1/2 |
| Notice date | Jun 04, 2027 |
| Year built | 1985 |
| Building SF | 2,213 |
| Land area (acres) | 0.46 |
| Pre G&A CFC | 2.49x (2024) |
| Lease status | Active |
Kalkaska is a designated 'Trail Town' (ORV, snowmobile, and North Country Trail hub) and host of the long-running National Trout Festival, funneling Northwest-Michigan vacation traffic through town. Through-traffic and recreation demand are not captured by resident-market metrics.
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 | 0 | 8,218 |
| Households | 0 | 0 | 3,300 |
| Pop. density (/sq mi) | 0 | 0 | 105 |
| Avg HH income | — | — | $68,127 |
| Poverty rate | — | — | 14.9% |
| Bachelor's+ | — | — | 17.1% |
| Median home value | — | — | $159,496 |
| Median rent | — | — | $710 |
| Median age | — | — | 40 |
| Owner-occupied | — | — | 81.7% |
This net lease convenience store and gas station at 111 S Cedar St, Kalkaska, MI is occupied by Next Door Store (Fas Mart), a banner of GPM Investments, LLC, subsidiary of Nasdaq-listed ARKO Corp. With only 1.5 years of remaining term, the asset trades on near-term rollover risk against a backdrop of weak demographics and heavy local competition. The location scores 35 out of 100, reflecting genuine fundamental challenges that prospective buyers must price carefully.
The 5-mile trade area supports just 8,218 residents at a low density of 105 per square mile, with average household income of $68,127 and a poverty rate of 14.9%, indicating a thin and economically constrained consumer base. Meaningful demographic data is unavailable at the 1-mile and 3-mile rings, suggesting sparse immediate-area population. These figures do not support premium rent growth assumptions at renewal.
Kalkaska County is a small, slowly growing rural market with 18,618 residents as of 2024, up 3.8% since 2020, but unemployment sits at a concerning 6.7%. The county's commercial base is limited, with only 351 total establishments and 4,380 employees, reducing the daytime demand capture that typically underpins convenience store performance. This is not a growth market.
The site benefits from 14,713 vehicles per day and sits within 0.02 miles of a major road, providing adequate traffic exposure for a convenience format. However, six competing gas stations within a half mile and seven within one mile represent an acute saturation problem that compresses margin and limits pricing power. A Walk Score of 61 offers modest walkability, though this provides limited incremental benefit in a rural, auto-dependent setting.
Flood zone designation is Zone X, presenting minimal environmental exposure. Crime statistics are unavailable at the state level for this report, limiting full risk assessment. EV charging penetration in the immediate area is nascent at two stations within five miles, posing a modest but real long-term demand headwind for fuel volumes.
With only 1.5 years remaining before the December 2027 expiration, a buyer acquires very limited income certainty. Current rent of $158,678 annually at $71.70 per square foot is the only contracted cash flow, and no rent at expiration is disclosed, creating uncertainty around renewal economics. One renewal option remains, with notice required by June 2027, placing the rollover decision almost immediately upon acquisition. The guarantor, GPM Investments backed by ARKO Corp., is a publicly traded, SEC-reporting operator of roughly 3,500 sites, providing meaningful credit quality relative to the asset size, though ARKO has faced margin pressure in recent periods. A buyer is essentially underwriting the credit and renewal probability, not long-term lease duration.
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