RaceTrac: Powder Springs, GA (Atlanta MSA)
Long term corporate lease
There are approximately 11 years remaining on the initial lease term with 7.5% rent increases every 5-years, which continue through each of the seven, 5-year renewal option periods. The lease is absolute net, with no landlord maintenance responsibilities and comes with a corporate guarantee from RaceTrac Petroleum, Inc..
RaceTrac has been operating since 1934, which is an 87-year operating history. The Company now operates over 550 convenience store locations in Florida, Georgia, Louisiana, Tennessee, and Texas. RaceTrac generated $9.6 Billion in Revenue in 2021.2
Convenient retail location
RaceTrac is strategically located on Dallas Highway (32,691 VPD), the main thoroughfare crossing through northern Dallas. National retailers in the immediate area include a U-Haul Moving & Storage, Walmart Supercenter, Pizza Hut, Zaxby’s Chicken Fingers and Buffalo Wings, AutoZone Auto Parts, Waffle House, and many others.
Strategic location along Dallas Highway
The Property is strategically located along Dallas Highway, halfway between Downtown Dallas and Marietta and only 21 miles from Atlanta.
Strong demographics | $152K average HH income 1-mile radius
The Property offers favorable demographics for the region with an average household income of $152,511 within a one-mile radius and 106,820 residents within 5-miles.
Strong potential tax advantage | 80% bonus depreciation in year 2023 (3)
The estimated bonus depreciation in 2023 for the Subject Property is $3,200,000. Please see the IRS Circular 230 Disclosure below. Current rules allow investors to immediately write off 80% of the improvement value in 2023 if certain requirements are met, and the property is placed in service after September 27, 2017. This went into effect after the Tax Cuts and Jobs Act when bonus depreciation was raised to 100% in 2022 and 80% in 2023. These amounts will need to be confirmed by your tax advisor.
Atlanta MSA location
Located in Dallas, Georgia, 21 miles northeast of downtown Atlanta, the site benefits from its proximity to the economic hub of the Southeast. The region has a population of roughly 6 million people and over the next five years is expected to add approximately 288,000 residents. Atlanta ranks as one of the nation’s top markets for Fortune 500 companies. UPS, Delta Airlines, Coca-Cola, and Home Depot represent a portion of the 16 companies with headquarters in the metro.
(1) Rentable Area, Lot Size, Guarantor, Lease Terms, and Year Built are estimates. Buyer is responsible for verifying during the Due Diligence process
(2) Net Operating Income shown is Pro Forma based on next rent increase occurring in December 2024. A prorated rent shortfall credit will be provided by Seller to Purchaser at close.
(3) For demonstration purposes only. This graph is not a guarantee of Subject Property’s performance, and/or RaceTrac exercising any option(s) under the lease.
GA Broker of Record: John Leonard
License: 252904
