Marathon — Traverse 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	$83,307
Base rent $/SF	$31.70
Rent at expiration	—
Expiration rent $/SF	—
Renewal options	1/2
Notice date	Mar 04, 2028
Year built	1990
Building SF	2,628
Land area (acres)	1.55
Pre G&A CFC	2.02x (2024)
Lease status	Active

Location Score Breakdown 57/100

AADT Traffic 8/15

Highway Proximity 1/10

Gas Competition 1mi 8/15

3mi Population 7/12

3mi HH Income 10/12

Pop Density 3mi 4/8

County Growth 4/7

County Unemp. 6/7

Dollar Stores 6/6

Daytime Jobs 3mi 6/10

EV Density Pen. -2/0

Thin Market Pen. 0/0

Demand Anchor & Uniqueness

Traverse City is Northwest Michigan's tourism capital — wineries, Lake Michigan beaches, and the National Cherry Festival drive heavy visitor volume on top of the resident base.

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	2,797	15,944	38,959
Households	1,374	7,806	17,532
Pop. density (/sq mi)	890	564	496
Avg HH income	$44,085	$74,081	$88,789
Poverty rate	28.3%	15.3%	11.0%
Bachelor's+	19.8%	31.3%	38.3%
Median home value	$174,600	$195,478	$279,911
Median rent	$982	$1,261	$1,285
Median age	44	40	43
Owner-occupied	52.6%	54.8%	65.0%

Site & Market Detail

Traffic (AADT at site)17,856

Daytime jobs (3 mi)16,620

Daytime jobs (1 mi)2,346

Gas competitors (0.5 mi)2

Gas competitors (1 mi)2

Gas competitors (3 mi)19+

Gas competitors (5 mi)19+

Nearest competing gas (mi)0.04

Nearest grocery/conv. alternative (mi)0.04

Dollar stores (0.5 mi)0

Highway distance (mi)2.49

EV stations (5 mi)36

CountyGrand Traverse County

County pop. growth1.3%

County unemployment4.3%

Walk score26

Bike score35

FEMA flood zoneX

Investment Highlights

Institutional guarantor credit is a clear positive, with ARKO Corp. operating approximately 3,500 locations across 34 states as a Nasdaq-listed, SEC-reporting entity.
The 5-mile average household income of $88,789 supports above-average per-visit convenience spending relative to national fuel stop benchmarks.
Zero dollar or discount store competitors within half a mile reduces the most common convenience-store sales cannibalization risk at the immediate node.

Key Risks

Lease term of only 2.1 years creates acute rollover exposure, with no rent-at-expiration data available to confirm economic re-leasing prospects.
The 1-mile poverty rate of 28.3% reflects a compromised immediate consumer base with limited discretionary convenience spending capacity.
Thirty-six EV charging stations within 5 miles signal accelerating infrastructure displacement risk to fuel-dependent convenience store revenue over the medium term.

Executive Summary

This Marathon/Fas Mart convenience store at 2001 Garfield Rd N in Traverse City, Michigan is a mid-term net lease asset with 2.1 years of remaining term, operated by GPM Investments under the ARKO Corp. platform. The site scores 57/100 on location grade, reflecting adequate but not exceptional retail fundamentals in a small northern Michigan metro. The investment thesis is primarily a short-duration credit play with near-term rollover exposure.

Demographics

The immediate 1-mile trade area is demographically thin, with only 2,797 residents, low household income of $44,085, and a poverty rate of 28.3%. The 3-mile ring improves materially to 15,944 residents and average household income of $74,081, suggesting the site draws from a broader geography rather than a dense local base. The 5-mile population of 38,959 and average income of $88,789 reflect Traverse City's broader middle-market character.

Market Context

Grand Traverse County is a stable, slow-growth metro with population increasing just 1.3% from 2020 to 2024, reaching 96,625. Unemployment at 4.3% is moderate, and the local economy of 45,964 employees across 3,500 establishments indicates a serviceable but not dynamic retail environment. The region's tourism-driven economy provides seasonal demand uplift but limits sustained population and income growth.

Location Quality

Traffic of 17,856 AADT is functional for a convenience store but not high-volume by national net lease standards. The site sits 2.49 miles from the nearest major road, limiting impulse capture, and a Walk Score of 26 confirms full car dependency. Two competing gas stations within half a mile add direct competitive pressure at the immediate node.

Risk Factors

Flood exposure is minimal at FEMA Zone X. The 1-mile poverty rate of 28.3% introduces demand quality risk and potential consumer spending vulnerability. The presence of 36 EV charging stations within 5 miles signals meaningful long-term structural risk to fuel volumes as EV adoption accelerates in this relatively affluent 5-mile trade area.

Investment Positioning

With only 2.1 years of remaining term, a buyer acquires limited contractual income runway before facing a binary renewal decision. The lease carries one remaining renewal option with a notice deadline of March 2028, and no rent escalation data is available to assess growth through expiration. GPM Investments, guaranteed by publicly traded ARKO Corp., the sixth-largest U.S. convenience store operator with approximately 3,500 locations, provides institutional-grade credit quality, but ARKO's publicly disclosed margin pressures and acquisition-heavy balance sheet warrant monitoring. At $83,307 annual rent, a buyer must underwrite rollover risk aggressively, as re-tenanting or re-leasing a 1990-vintage, 2,628 SF fuel site in a secondary Michigan market is not a liquid exit.

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

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