Scotchman — Wilmington, NC

Lease Abstract

Tenant / d/b/a	Scotchman
Guarantor	Fas Mart (GPM Investments)
Lease commencement	Mar 27, 2008
Lease expiration	Mar 31, 2028
Remaining term	1.8 yrs
Lease term (months)	—
Annual base rent	$183,020
Base rent $/SF	$77.45
Rent at expiration	—
Expiration rent $/SF	—
Renewal options	1/2
Notice date	Sep 04, 2027
Year built	1983
Building SF	2,363
Land area (acres)	0.96
Pre G&A CFC	2.93x (2024)
Lease status	Active

Location Score Breakdown 69/100

AADT Traffic 2/15

Highway Proximity 10/10

Gas Competition 1mi 2/15

3mi Population 12/12

3mi HH Income 12/12

Pop Density 3mi 6/8

County Growth 7/7

County Unemp. 7/7

Dollar Stores 6/6

Daytime Jobs 3mi 8/10

EV Density Pen. -2/0

Thin Market Pen. 0/0

Demand Anchor & Uniqueness

Wilmington is a coastal port city with major beach tourism, UNCW, and the Port of Wilmington. Visitor and student demand supplement the resident base.

The location score above reflects resident-market real-estate fundamentals and does not incorporate seasonal or destination demand; consider this note alongside the store-level coverage (CFC) when assessing the asset.

Trade-Area Demographics

Metric	1 mi	3 mi	5 mi
Population	2,684	59,529	129,516
Households	1,595	27,111	58,177
Pop. density (/sq mi)	854	2,105	1,649
Avg HH income	$42,614	$93,566	$98,629
Poverty rate	28.0%	16.2%	14.4%
Bachelor's+	23.7%	44.3%	44.7%
Median home value	$301,600	$347,776	$353,696
Median rent	$1,053	$1,554	$1,459
Median age	25	34	38
Owner-occupied	11.1%	48.1%	55.0%

Site & Market Detail

Traffic (AADT at site)3,500

Daytime jobs (3 mi)39,987

Daytime jobs (1 mi)7,955

Gas competitors (0.5 mi)4

Gas competitors (1 mi)7

Dollar stores (0.5 mi)0

Highway distance (mi)0.01

EV stations (5 mi)23

CountyNew Hanover County

County pop. growth7.5%

County unemployment3.1%

Walk score46

Bike score70

FEMA flood zoneX

Investment Highlights

A growing coastal metro adds demand tailwinds, with New Hanover County population up 7.5% since 2020 to 243,333 residents.
The daytime employment base is robust, with 39,987 jobs within 3 miles driving a 2.96 day-to-night population ratio.
The lease guarantor is ARKO Corp. (Nasdaq: ARKO), the sixth-largest U.S. c-store operator with approximately 3,500 locations across 34 states.

Key Risks

Near-term lease expiration in March 2028 creates rollover exposure within the typical buyer hold period, with only one remaining renewal option.
Site-level traffic is thin at 3,500 AADT, and four competing gas stations within 0.5 miles create direct volume pressure.
The 1-mile average household income of $42,614 and 28.0% poverty rate constrain per-visit spending and limit alternative tenant demand if the site goes dark.

Executive Summary

610 Eastwood Rd is a 2,363 SF convenience store operated by Scotchman (GPM Investments/ARKO Corp.) on a 0.96-acre parcel in Wilmington, NC, with 1.8 years remaining on a lease expiring March 2028. The site scores 69/100 (Strong) on location grade, supported by a dense daytime employment base and a growing coastal metro, though near-term lease rollover and a compressed AADT of 3,500 vehicles/day temper the investment profile.

Demographics

The immediate 1-mile trade area is modest, with 2,684 residents, average household income of $42,614, and a poverty rate of 28.0%, limiting convenience-tier spending power at the site level. The 3-mile ring is materially stronger at 59,529 residents, $93,566 average household income, and 44.3% bachelor-degree attainment, reflecting Wilmington's bifurcated socioeconomic geography.

Market Context

New Hanover County is a growing coastal metro with population rising 7.5% from 2020 to 2024, reaching 243,333, and unemployment of 3.1% signaling a healthy labor market. The county's 8,516 total establishments and 114,702 employees underpin durable convenience-fuel demand across the broader trade area.

Location Quality

The site sits 0.01 miles from a major road and benefits from 39,987 daytime jobs within 3 miles and a day-to-night population ratio of 2.96, indicating strong commuter and worker-driven traffic patterns. However, a Walk Score of 46 confirms car-dependent access, and 23 EV charging stations within 5 miles signal emerging fuel-demand displacement risk over time.

Risk Factors

The site carries no material natural hazard exposure, with FEMA designation of Zone X indicating minimal flood risk, a meaningful underwriting positive in a coastal North Carolina market. No dollar or discount store competition exists within 0.5 miles, reducing c-store basket erosion from that channel.

Investment Positioning

With only 1.8 years remaining and a September 2027 renewal notice deadline, a buyer absorbs immediate rollover risk at acquisition. At $183,020 in annual base rent ($77.45/SF), rent-at-expiration data is unavailable, leaving re-leasing economics unanchored. The single remaining renewal option provides limited long-term income visibility. The guarantor credit — GPM Investments, a subsidiary of Nasdaq-listed ARKO Corp., the sixth-largest U.S. c-store operator with roughly 3,500 sites — is a meaningful institutional-quality backstop, but ARKO's thin public-market margins and competitive industry pressures warrant scrutiny. Buyers should underwrite this as a near-term rollover/redevelopment opportunity rather than a long-duration income play.

Full institutional offering memorandum with all 48 briefs, maps, and tax analysis.

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