Marcus & Millichap Brokers Sale of New Wawa-Leased Gas Station in Loxley, Alabama

Marcus & Millichap's Taylor McMinn Retail Group arranged the sale of a newly constructed gas station and convenience store in Loxley, a suburb on the eastern side of Mobile, Alabama. Wawa is the tenant under a 20-year lease that includes 7 percent rent increases beginning in year 11 of the initial term, along with extension options. An investor acquired the property through a 1031 exchange, paying all cash to an Alabama-based development firm. The purchase price was not disclosed, and both parties asked to remain anonymous. Don McMinn and Andrew Koriwchak handled the brokerage. McMinn said the deal was the team's third Wawa closing in Alabama and that his firm was the third brokerage engaged to market the property. He added that the sale closed at 97 percent of list price despite difficult market conditions. For developers and investors, the transaction shows that freestanding fuel and convenience assets with long leases and scheduled rent escalations still draw 1031 exchange capital, even when pricing is soft.