A typical Sheetz convenience store and gas station, like the one planned for Mannheim, PA A typical Sheetz convenience store and gas station, like the one planned for Mannheim, PA

MANHEIM, PA—Marcus & Millichap brokered the sale of a 15-year Sheetz ground lease located in Manheim, PA, according to Brenton J. Baskin, regional manager of the firm’s Philadelphia office. The asset sold at list price, $3 million.

The site is at 820 Lancaster Rd., Manheim, PA, directly across from the Manheim Auto Auction.

Steve Garthwaite, Derrick Dougherty and Mark Taylor, investment specialists of the TZD Retail team in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller. This closing marks the team’s ninth Sheetz transaction. The buyer was secured and represented by Lawrence Gariano and David Beyel, investment specialists in Marcus & Millichap’s Philadelphia office.

“Both the buyer and seller came to the table with different strategies,” says Garthwaite. “The developer was looking to pay down debt and invest in future projects, while the buyer was preserving equity in a 15-year corporate-backed lease.”

The triple-net property was sold pre-construction with approved development to include Sheetz, a town center and hotel, part of a three phase development plan. The 6,103-square foot convenience store is part of the company’s new prototype launch that includes 24-hour service and car wash. Sheetz is scheduled to open for business in September 2016.

“These types of transactions highlight the strong appeal for ground leases of well- respected convenience store brands. Brands such as Sheetz, Royal Farms and Wawa have such a strong demand we are noticing these rates have been compressing over the past 15 months compared to the rest of the net-leased market,” says Garthwaite.

CORRECTION, 9/27/2016, 9:57 a.m.: This article has been updated to include the street address of the property.