RaceTrac Completes Largest Acquisition in Company History: Gulf Oil

Estimated read time: 3 minutes and 48 seconds

RICKY BOBBY

RaceTrac Acquires Gulf Oil in Largest Deal Yet (Read More)

RACETRAC: RaceTrac Completes Largest Acquisition in Company History

RaceTrac Acquires Gulf Oil: RaceTrac, a family-owned convenience store retailer, has successfully acquired Gulf Oil, marking its largest acquisition to date and expanding its fuel network.

Talladega Nights:

• Acquisition Details: RaceTrac has completed the acquisition of Gulf Oil, including its iconic brand and approximately 1,100 branded sites in the US and Puerto Rico.

• Growth Opportunities: The acquisition provides RaceTrac with opportunities for geographic expansion, scale, and diversification.

• Leadership Appointments: Ron Sabia, with over 30 years of experience in the fuel industry, has been appointed COO of the acquired Gulf entity and head of the Gulf business unit.

• Future Success: Metroplex Energy's expertise in fuel supply, combined with Gulf's extensive distributor network and nationally recognized brand, creates possibilities for success in the retail fuel marketplace.

• Enhanced Fuel Network: The combination of Metroplex Energy and Gulf Oil establishes a best-in-class fuel network with a strong presence in high-demand markets across the country.

• RaceTrac's Profile: With headquarters in Atlanta, RaceTrac is a leading privately held company with nearly 800 retail locations in 12 states, representing the RaceTrac and RaceWay brands.

• Metroplex Energy: Metroplex Energy is an Atlanta-based wholesale fuel supply and trading company that serves RaceTrac, as well as other retailers and fuel wholesalers in fifteen states.

🧠 EDITOR’S THOUGHTS

Most RaceTracs properties have 20 - 24 fuel stations and a 5,000 - 6,000 SF convenience store offering 3,500+ items. They have corporate-guaranteed leases and provide corporate environmental indemnification.

RaceTrac brands are in Florida, Georgia, Texas, Mississippi, and Louisiana. Meanwhile, RacWay brands are located in Virginia, Texas, Tennesee, South Carolina, North Carolina, Mississippi, Louisana, Kentucky, Georgia, Florida, Arkansas, and Alabama.

Location List Here

📝 RACETRAC CHEAT SHEET

• Average Price Point: $4M - $5.5M

• Average Cap Rate: 4.75% - 5.5%

• Lease Type: Absolute NNN

• Rent Increases: 7.5% every 5 years

• Base Term: 15 Years plus Seven 5-Year Options

• Average Rent: $200,000 - $250,000

• Lot Size Requirement: 1.5 - 2.0 Acres

• Building Size: 5,000 - 6,000 SF

• Right of First Refusal: Yes, 10 Days

TRIPLE NET TENDIES

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NET LEASE NUGGIES

• Retail real estate poised for growth in 2024. At ICSC's recent show in New York, industry experts were optimistic about the future of retail construction. The Federal Reserve's decision to hold interest rates steady and promise three rate cuts for 2024 was seen as a gift for the industry. With retail space availability expected to rise, experts anticipate a vacancy rate of 5-7%. Despite concerns about skilled labor availability, low shipping costs and strong consumer spending are driving retail expansion. Developers are confident in the demand for new locations from durable brands. (Read More)

• The holiday shopping season started strong in November. According to the CNBC/NRF Retail Monitor, retail sales (excluding autos and gasoline, including restaurants) increased 0.77% month over month and 4.24% year over year. Core retail sales (excluding autos, gas, and restaurants) also saw growth, with a 0.73% increase month over month and a 4.17% increase year over year. The Retail Monitor, which uses actual credit and debit card data, predicts a 3-4% increase in holiday retail sales from Nov. 1 to Dec. 31. Online sales, health and personal care stores, and sporting goods, hobby, music, and book stores performed well. However, building and garden supply stores and furniture and home furnishings stores experienced declines. (Read More)

• Nordstrom expands its off-price banner. Nordstrom is set to open new Nordstrom Rack stores in Franklin, Tenn., and Noblesville, Ind., in fall 2024. The 24,000-sq.-ft. store in Franklin will be located at Cool Springs Market, while the 25,000-sq.-ft. store in Noblesville will be at Hamilton Town Center. Nordstrom currently operates four Nordstrom Rack stores and one Nordstrom store in Tennessee and three Nordstrom Rack stores and one Nordstrom store in Indiana. With the expansion, Nordstrom aims to strengthen its Rack division, which now operates 258 stores. (Read More)

BEAST TWEETS x POSTS

🐦 Kyle Fant: Summed up convo from my colleague today - top NNN broker in country + the smartest one I know…

🦅 NNN Retail Guy: Going through a tenant default on 5,000 SF space including a patio in a shopping center we own.…

🦢 3NDeveloper: Filter for properties with <4% cap rates, and then rank them based on price/SF…

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