GPM Disposition PortfolioLocation Intelligence & Lease Summary
GPM Disposition PortfolioLocation Intelligence & Lease Summary
88 N Morey Rd, Lake City, MI
| Tenant / d/b/a | Marathon |
| Guarantor | Fas Mart (GPM Investments) |
| Lease commencement | Oct 09, 2007 |
| Lease expiration | Mar 31, 2027 |
| Remaining term | 0.8 yrs |
| Lease term (months) | — |
| Annual base rent | $41,891 |
| Base rent $/SF | $24.91 |
| Rent at expiration | — |
| Expiration rent $/SF | — |
| Renewal options | 1/2 |
| Notice date | Sep 02, 2026 |
| Year built | 1980 |
| Building SF | 1,682 |
| Land area (acres) | 0.74 |
| Pre G&A CFC | -1.10x (2024) |
| Lease status | SUBLEASED |
| Operating tenant | Marathon Gas |
| Metric | 1 mi | 3 mi | 5 mi |
|---|---|---|---|
| Population | 0 | 3,381 | 3,381 |
| Households | 0 | 1,342 | 1,342 |
| Pop. density (/sq mi) | 0 | 120 | 43 |
| Avg HH income | — | $97,507 | $97,507 |
| Poverty rate | — | 7.6% | 7.6% |
| Bachelor's+ | — | 25.2% | 25.2% |
| Median home value | — | $206,600 | $206,600 |
| Median rent | — | $739 | $739 |
| Median age | — | 50 | 50 |
| Owner-occupied | — | 84.1% | 84.1% |
This Marathon-branded convenience store and gas station at 88 N Morey Rd, Lake City, MI is a near-term rollover play on a weak-graded location in rural northern Michigan. With only 0.8 years of lease term remaining and a location score of 33 out of 100, the asset presents meaningful re-leasing and occupancy risk. The current $41,891 annual rent at $24.91 per square foot offers modest cash flow but limited downside protection given the compressed runway.
The immediate trade area is effectively uninhabited within one mile, with the relevant population base of 3,381 reaching only to the three- and five-mile rings at a density of just 120 persons per square mile. Average household income of $97,507 and low poverty at 7.6 percent reflect a modest but stable rural ownership economy, with 84 percent owner-occupancy rates. This demographic profile is thin and does not support meaningful organic sales growth for a convenience operator.
Lake City sits within Missaukee County, a nonmetro rural market with 15,239 residents and modest population growth of 1.1 percent since 2020. The county's 310 total business establishments and 2,634 employees underscore a limited commercial base with constrained fuel and convenience demand drivers. An unemployment rate of 5.8 percent adds modest headwind to consumer spending capacity.
Traffic at 4,565 vehicles per day is below typical thresholds for high-performing convenience gas sites, and the area is fully car-dependent with a Walk Score of 43. Proximity to a major road at 0.08 miles is a modest positive, though daytime employment within one mile is only 456 jobs. Four competing gas stations within one mile dilute the site's capture potential materially.
The property sits in FEMA Flood Zone X, indicating minimal natural hazard exposure. No meaningful crime data flags were identified at the state level. The 1980 construction vintage on a 1,682-square-foot building raises potential capital expenditure concerns for any re-tenanting scenario post-lease.
With 0.8 years remaining and a renewal notice deadline of September 2026, buyers face immediate rollover risk. GPM Investments, a subsidiary of Nasdaq-listed ARKO Corp., the sixth-largest U.S. convenience operator, provides credible institutional credit quality. However, rent at expiration is unstated, renewal optionality covers only one of two options exercised, and the weak location grade suggests a replacement tenant at current rent levels would be difficult to source, compressing exit value.
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