Marathon — Mackinaw City, MI

Lease Abstract

Tenant / d/b/a	Marathon
Guarantor	Fas Mart (GPM Investments)
Lease commencement	Oct 09, 2007
Lease expiration	Sep 30, 2028
Remaining term	2.1 yrs
Lease term (months)	—
Annual base rent	$165,025
Base rent $/SF	$47.33
Rent at expiration	—
Expiration rent $/SF	—
Renewal options	1/2
Notice date	Mar 04, 2028
Year built	1985
Building SF	3,487
Land area (acres)	1.42
Pre G&A CFC	7.48x (2024)
Lease status	Active

Location Score Breakdown 21/100

AADT Traffic 0/15

Highway Proximity 10/10

Gas Competition 1mi 8/15

3mi Population 0/12

3mi HH Income n/a

Pop Density 3mi 0/8

County Growth 4/7

County Unemp. 0/7

Dollar Stores 6/6

Daytime Jobs 3mi 1/10

EV Density Pen. 0/0

Thin Market Pen. -10/0

Demand Anchor & Uniqueness

Mackinaw City is a primary gateway to Mackinac Island; the site sits adjacent to the Shepler's ferry day-parking lot, with the Mackinac Bridge and Colonial Michilimackinac drawing heavy seasonal tourist traffic. Resident-population and annualized-AADT inputs materially understate in-season demand.

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.

Trade-Area Demographics

Metric	1 mi	3 mi	5 mi
Population	0	0	0
Households	0	0	0
Pop. density (/sq mi)	0	0	0
Avg HH income	—	—	—
Poverty rate	—	—	—
Bachelor's+	—	—	—
Median home value	—	—	—
Median rent	—	—	—
Median age	—	—	—
Owner-occupied	—	—	—

Site & Market Detail

Traffic (AADT at site)1,332

Daytime jobs (3 mi)630

Daytime jobs (1 mi)584

Gas competitors (0.5 mi)2

Gas competitors (1 mi)2

Gas competitors (3 mi)4

Gas competitors (5 mi)4

Nearest competing gas (mi)0.07

Nearest grocery/conv. alternative (mi)0.17

Dollar stores (0.5 mi)0

Highway distance (mi)0.03

EV stations (5 mi)10

CountyCheboygan County

County pop. growth1.5%

County unemployment11.9%

Walk score61

Bike score62

FEMA flood zoneX

Investment Highlights

ARKO Corp., the publicly traded parent guarantor, operates roughly 3,500 convenience stores across 34 states, providing institutional credit support for the remaining lease term.
Proximity of 0.03 miles to the nearest major road ensures direct access from the primary tourist corridor into Mackinaw City.
Twenty restaurants within one mile indicate an active tourist-serving retail cluster that supports convenience and fuel demand during peak season.

Key Risks

AADT of only 1,332 vehicles per day is critically insufficient for a gas station business model, which typically requires multiples of that volume to generate sustainable fuel and in-store revenue.
Recorded population of zero within all trade-area radii confirms the site has no resident customer base, leaving revenue entirely dependent on seasonal tourism that concentrates in a narrow summer window.
With 2.1 years remaining and one renewal option subject to a March 2028 notice date, a buyer faces near-term rollover exposure in a weak, rural market where alternative tenants or operators are difficult to identify.

Executive Summary

308 S Nicolet St in Mackinaw City, Michigan is a Marathon-branded convenience store operated by GPM Investments under a lease expiring September 30, 2028, leaving approximately 2.1 years of remaining term. The site earns a Poor location grade of 21 out of 100, reflecting extremely thin trade-area density and low traffic volumes. This is a short-term income play with meaningful rollover risk in a small, seasonally dependent tourist market.

Demographics

Recorded population within all three radii registers at zero, indicating the site sits in a census-uninhabited area dependent on tourist and transient traffic rather than a resident consumer base. Cheboygan County's broader population of roughly 26,000 grew just 1.5 percent from 2020 to 2024, offering no meaningful organic demand growth to support underwriting.

Market Context

Mackinaw City is a gateway tourism market at the northern tip of Michigan's Lower Peninsula, meaning foot and vehicle traffic is highly seasonal and concentrated in summer months. County unemployment of 11.9 percent is well above national norms, signaling a structurally weak local labor market. With only 759 total county establishments and 4,556 employees, the economic base is thin and not self-sustaining year-round.

Location Quality

The site sits 0.03 miles from the nearest major road, providing reasonable access, and benefits from 20 nearby restaurants within one mile that support tourist corridor co-tenancy. However, AADT of just 1,332 vehicles per day is critically low for a gas station and convenience store format, and two competing stations within half a mile compress margin potential.

Risk Factors

FEMA designates the site in Zone X, indicating minimal flood hazard. Ten EV charging stations within five miles represent an above-average concentration for a rural area, introducing incremental long-term fuel volume risk. No meaningful crime data is available for independent assessment of site-level security exposure.

Investment Positioning

With only 2.1 years remaining, a buyer acquires limited income duration before facing a binary renewal decision in March 2028. There is no disclosed rent at expiration, making it impossible to underwrite a lease step or verify market alignment. GPM Investments, guaranteed by ARKO Corp., a Nasdaq-listed operator of approximately 3,500 sites, provides institutional-grade credit quality, which is the deal's clearest asset. However, given the weak location grade and seasonally constrained market, re-leasing or exit optionality post-2028 is materially uncertain, compressing the buyer's risk-adjusted return profile.

Full institutional offering memorandum with all 143 property briefs, maps, and tax analysis.

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