GPM Disposition PortfolioLocation Intelligence & Lease Summary
GPM Disposition PortfolioLocation Intelligence & Lease Summary
421 E Chatham St, Cary, NC
| Tenant / d/b/a | Scotchman |
| Guarantor | Fas Mart (GPM Investments) |
| Lease commencement | Mar 27, 2008 |
| Lease expiration | Mar 31, 2031 |
| Remaining term | 4.6 yrs |
| Lease term (months) | — |
| Annual base rent | $88,460 |
| Base rent $/SF | $35.50 |
| Rent at expiration | — |
| Expiration rent $/SF | — |
| Renewal options | 1/2 |
| Notice date | Sep 03, 2030 |
| Year built | 1990 |
| Building SF | 2,492 |
| Land area (acres) | 0.57 |
| Pre G&A CFC | -0.01x (2018) |
| Lease status | SUBLEASED |
| Operating tenant | 421 E Chatham St |
| Metric | 1 mi | 3 mi | 5 mi |
|---|---|---|---|
| Population | 12,051 | 87,436 | 185,862 |
| Households | 4,402 | 37,839 | 77,560 |
| Pop. density (/sq mi) | 3,836 | 3,092 | 2,366 |
| Avg HH income | $106,359 | $125,382 | $134,501 |
| Poverty rate | 16.4% | 9.1% | 9.0% |
| Bachelor's+ | 44.3% | 60.9% | 65.1% |
| Median home value | $351,213 | $431,162 | $474,319 |
| Median rent | $1,376 | $1,549 | $1,620 |
| Median age | 31 | 37 | 37 |
| Owner-occupied | 42.0% | 49.5% | 51.9% |
421 E Chatham St is a 2,492 SF Scotchman-branded convenience store and gas station in Cary, NC, operated by GPM Investments under the Fas Mart platform and leased through March 2031. The site earns a Location Grade of 71 out of 100, reflecting solid suburban fundamentals in one of the fastest-growing metros in the Southeast. At $88,460 in annual base rent, this offering suits investors seeking a short-to-medium duration net lease with a publicly traded guarantor.
The 3-mile trade area supports 87,436 residents with average household income of $125,382, a median home value of $431,162, and a bachelor's degree attainment rate of 60.9%, indicating an affluent, educated suburban base. The 5-mile population reaches 185,862 with average household income of $134,501, reinforcing strong consumer purchasing power. Poverty rates fall to 9.0 to 9.1 percent beyond the 1-mile ring, suggesting the immediate block carries slightly more economic stress than the broader corridor.
Wake County added over 100,000 residents between 2020 and 2024, a 9.0 percent gain, and unemployment sits at 2.9 percent across 530,994 employed positions. Cary is a core node within the Raleigh-Durham MSA, a metro exceeding 1 million people with sustained in-migration and a diversified technology and healthcare employment base. This macro backdrop provides durable fuel and convenience demand well beyond the lease term.
The site benefits from a Walk Score of 73 and proximity to 20 nearby restaurants and 20 retail destinations within 1 mile, indicating strong co-tenancy and daily traffic patterns. However, AADT of 7,500 vehicles per day is modest for a gas station, and 6 competing stations within 1 mile represent meaningful fuel price pressure. The 0.65-mile separation from the nearest major road limits impulse capture from highway-driven traffic.
1. Lease rollover risk is real with only 4.6 years of remaining term and no disclosed rent escalation at expiration, creating refinancing and re-leasing uncertainty near 2031. 2. EV charging infrastructure is expanding rapidly, with 132 stations within 5 miles, posing a long-term structural threat to fuel volume and, by extension, tenant profitability. 3. Six competing gas stations within 1 mile compress margin potential and increase the risk of tenant underperformance should fuel margins tighten.
With 4.6 years of remaining term and one renewal option, a buyer faces near-term rollover risk that demands careful underwriting of re-leasing probability and alternative use value. The absence of disclosed rent escalation means no contractual income growth through expiration, limiting return upside to current yield. The guarantor, GPM Investments under publicly traded ARKO Corp., the sixth-largest U.S. convenience operator, provides meaningful credit support, but ARKO has carried balance sheet leverage and experienced margin pressure, so covenant strength should be verified against current SEC filings before attributing investment-grade quality to the guarantee.
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