Wawa Net-Lease Portfolio in Richmond, VA, Sells for $35M
The buyer was comfortable completing the sale during the pandemic due to the essential nature of gas stations and convenience stores such as Wawa.
Provco, Goodman Properties and Pineville Properties purchased a five-building 24,867-square foot retail portfolio on long-term triple net leases with Wawa in Richmond, Virginia, for $35.2 million.
The assets were purchased in a 1031 exchange. JLL Capital Markets, a provider of capital solutions for real estate investors and occupiers, represented the sellers. The Wawa stores in the portfolio are located in Richmond, Glen Allen, Midlothian, and Chester. The stores were built in 2000-2001 and received lease extensions to 20 years.
Wawa is a chain company of more than 850 convenience stores, of which about 600 stores are also gas stations. Wawa is based in Wawa, Pennsylvania, and employs more than 35,000 people. Wawa stores are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C.
The sale began in March, just prior to the COVID-19 pandemic in the US. The buyer was comfortable completing the sale during the pandemic due to the essential nature of gas stations and convenience stores such as Wawa, said Marc Mandel, managing director for JLL Capital Markets.
Steven Schrenk, director at JLL Capital Markets, said there was a “flurry” of 1031 exchange transactions during the second quarter of 2020.
“We continue to see strong demand through this time for properties with good real estate fundamentals and high-quality, essential retailers where pricing has remained relatively the same for many of these assets,” Schrenk said.
Patrick Luther of SRS Real Estate Partners and Phil Sambazis of Marcus and Millichap represented the buyer.