GPM Disposition PortfolioLocation Intelligence & Lease Summary
GPM Disposition PortfolioLocation Intelligence & Lease Summary
303 West Houghton, Prudenville, MI
| Tenant / d/b/a | Marathon |
| Guarantor | Fas Mart (GPM Investments) |
| Lease commencement | Oct 09, 2007 |
| Lease expiration | Oct 31, 2029 |
| Remaining term | 3.2 yrs |
| Lease term (months) | — |
| Annual base rent | $48,238 |
| Base rent $/SF | $22.59 |
| Rent at expiration | — |
| Expiration rent $/SF | — |
| Renewal options | 1/2 |
| Notice date | Apr 04, 2029 |
| Year built | 1980 |
| Building SF | 2,135 |
| Land area (acres) | 1.05 |
| Pre G&A CFC | 9.96x (2024) |
| Lease status | Active |
Houghton Lake — Michigan's largest inland lake — anchors this market, driving year-round recreation (boating, fishing, ORV and snowmobile trails) plus Tip-Up-Town USA, the state's largest winter carnival. Demand is heavily seasonal/destination-driven and is not reflected in resident-population 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 | 4,334 | 7,277 |
| Households | 0 | 2,096 | 3,416 |
| Pop. density (/sq mi) | 0 | 153 | 93 |
| Avg HH income | — | $59,638 | $63,759 |
| Poverty rate | — | 23.8% | 19.2% |
| Bachelor's+ | — | 18.4% | 18.4% |
| Median home value | — | $106,684 | $120,607 |
| Median rent | — | $791 | $805 |
| Median age | — | 56 | 54 |
| Owner-occupied | — | 76.7% | 81.3% |
This Marathon-branded convenience store in Prudenville, Michigan is a small-format, 2,135 SF site on 1.05 acres generating $48,238 in annual base rent with 3.2 years remaining on the lease. The location scores a weak 33 out of 100 on location quality metrics, reflecting a rural, low-density trade area with limited economic vitality. Investors should price this asset accordingly, treating it primarily as a short-duration income play with meaningful rollover risk at expiration.
The immediate one-mile ring reports zero population, indicating the site sits in a sparsely developed corridor with no meaningful residential density. The three-mile trade area holds just 4,334 residents at 153 persons per square mile, average household income of $59,638, and a poverty rate of 23.8 percent — all below thresholds preferred for institutional convenience store underwriting. The five-mile population of 7,277 offers marginal expansion but does not materially improve the demand picture.
Roscommon County is classified as a nonmetro area with a 9.8 percent unemployment rate, well above national averages, and a total employment base of only 4,081 workers across 547 establishments. The county population grew modestly from 23,465 to 23,932 between 2020 and 2024, signaling minimal economic momentum. This is a seasonal and retirement-oriented market with limited organic demand drivers for a convenience retail operator.
Traffic exposure of 12,744 vehicles per day is adequate for a rural gas station format, and there are no competing gas stations within a half mile. However, daytime employment within one mile is only 241 jobs, and a Walk Score of 17 confirms the site is entirely car-dependent with negligible pedestrian or organic foot traffic. Proximity to a major road at 0.54 miles is a moderate offset but does not compensate for the thin trade area fundamentals.
Flood zone designation is Zone X, presenting minimal environmental exposure. State-level crime statistics were not available for independent assessment. No material physical or environmental risk flags were identified beyond the broader market and lease concerns addressed separately.
With 3.2 years remaining and a single renewal option requiring notice by April 2029, the buyer faces near-term rollover risk in a weak submarket where re-tenanting or re-leasing at current rent would be challenged. Current rent of $22.59 per square foot is modest, and no rent escalation at expiration is disclosed. The lease guarantor, GPM Investments, is a subsidiary of ARKO Corp., a Nasdaq-listed operator of approximately 3,500 sites, providing a meaningful institutional credit backstop — though ARKO carries meaningful leverage and thin margins typical of the fuel distribution sector.
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