Scotchman — Carolina Beach, NC

Lease Abstract

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	$158,617
Base rent $/SF	$45.22
Rent at expiration	—
Expiration rent $/SF	—
Renewal options	1/2
Notice date	Sep 03, 2030
Year built	2005
Building SF	3,508
Land area (acres)	0.92
Pre G&A CFC	4.92x (2024)
Lease status	Active

Location Score Breakdown 66/100

AADT Traffic 11/15

Highway Proximity 10/10

Gas Competition 1mi 5/15

3mi Population 7/12

3mi HH Income 12/12

Pop Density 3mi 2/8

County Growth 7/7

County Unemp. 7/7

Dollar Stores 4/6

Daytime Jobs 3mi 2/10

EV Density Pen. 0/0

Thin Market Pen. 0/0

Demand Anchor & Uniqueness

Carolina Beach is an oceanfront resort town (boardwalk, fishing, state park) south of Wilmington with heavy seasonal beach tourism 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.

Trade-Area Demographics

Metric	1 mi	3 mi	5 mi
Population	2,932	11,168	24,151
Households	1,427	4,933	10,433
Pop. density (/sq mi)	933	395	308
Avg HH income	$133,765	$115,884	$107,735
Poverty rate	10.4%	8.4%	7.8%
Bachelor's+	54.3%	42.0%	39.2%
Median home value	$498,000	$454,170	$397,604
Median rent	$1,466	$1,268	$1,351
Median age	51	48	47
Owner-occupied	77.8%	84.2%	79.1%

Site & Market Detail

Traffic (AADT at site)22,500

Daytime jobs (3 mi)3,072

Daytime jobs (1 mi)2,071

Gas competitors (0.5 mi)3

Gas competitors (1 mi)3

Gas competitors (3 mi)4

Gas competitors (5 mi)15

Nearest competing gas (mi)0.37

Nearest grocery/conv. alternative (mi)0.21

Dollar stores (0.5 mi)1

Highway distance (mi)0.01

EV stations (5 mi)5

CountyNew Hanover County

County pop. growth7.5%

County unemployment3.1%

Walk score68

Bike score71

FEMA flood zoneX

Investment Highlights

Institutional credit backing from ARKO Corp., a publicly traded, SEC-reporting operator controlling approximately 3,500 convenience locations across 34 states, reduces counterparty risk materially.
High-income demographics with average household income of $133,765 within one mile support above-average per-customer spend at the convenience and fuel level.
Direct frontage on a corridor carrying 22,500 vehicles per day, located 0.01 miles from the nearest major road, ensures maximum site visibility and drive-by capture.

Key Risks

Only 4.6 years of remaining lease term with a single renewal option creates meaningful rollover exposure for a buyer at or near acquisition.
Three competing gas stations within half a mile represent concentrated direct competition that could pressure fuel volumes and in-store traffic.
The small permanent population of 2,932 within one mile creates baseline demand dependency on seasonal tourist traffic, introducing revenue cyclicality risk.

Executive Summary

900 N Lake Park Blvd is a 3,508 SF Scotchman convenience store and gas station on 0.92 acres in Carolina Beach, NC, operated by GPM Investments under the Fas Mart banner. The site earns a location grade of 66 out of 100, reflecting solid coastal-market fundamentals tempered by moderate competition and a limited remaining lease term of 4.6 years.

Demographics

The immediate one-mile trade area is modest in population at 2,932 but punches above its weight on income, with average household income of $133,765. The three-mile ring expands to 11,168 residents with a median home value of $454,170, 84.2% owner occupancy, and a bachelor's degree attainment rate of 42%, indicating a stable, affluent suburban coastal consumer base.

Market Context

New Hanover County is a growing mid-size metro, with population rising 7.5% from 2020 to 2024, reaching 243,333, and unemployment sitting at a tight 3.1%. The Wilmington metro's expanding retail and food-service base of over 1,800 establishments supports sustained convenience-retail demand. Carolina Beach's seasonal tourism dynamic adds traffic volatility but also meaningful peak-season revenue upside.

Location Quality

The site fronts a major road at effectively zero offset, capturing 22,500 vehicles per day, and benefits from a Walk Score of 68 and Bike Score of 71, which are strong metrics for a coastal resort corridor. Twenty restaurants and 20 retail destinations within one mile reinforce the site as part of an active commercial node.

Risk Factors

The property sits in FEMA Flood Zone X, representing only a 0.2% annual chance flood hazard, which is a low physical risk profile for a coastal Carolina asset. However, three competing gas stations exist within half a mile, creating meaningful price and volume competition. The day-to-night population ratio of 0.71 suggests the trade area is not heavily employment-driven, making performance dependent on residential and tourist traffic patterns.

Investment Positioning

With 4.6 years of term remaining and a single renewal option requiring notice by September 2030, a buyer faces near-term rollover risk. Current rent of $158,617 annually at $45.22 per SF provides in-place cash flow, but no rent at expiration data is available to assess escalation, limiting underwriting visibility. GPM Investments, a subsidiary of Nasdaq-listed ARKO Corp., the sixth-largest U.S. convenience operator with roughly 3,500 sites, provides institutional-grade credit support. The guarantor quality is a clear mitigant, but the short runway demands a buyer underwrite renewal probability carefully.

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

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