Royal Farms | Low Rent Rate | 13+ Years Remain
13+ Years Remain | Signalized Corner
Marketing description
- 13+ YEARS REMAIN WITH 10% INCREASES EVERY FIVE YEARS
- HIGH-PERFORMING 24-HOUR STORE
- RESIDUAL VALUE WITH SIGNIFICANT TENANT INVESTMENT IN IMPROVEMENTS ON 3+ ACRES
- AFFLUENT SUBURB OF WASHINGTON, DC METRO
- EXPANDING CREDITWORTHY C-STORE/FUEL OPERATOR WITH 247 MID-ATLANTIC LOCATIONS
Investment highlights
LONG TERM CORPORATE LEASE WITH HIGH RESIDUAL VALUE – The Tenant, Two Farms, Inc., doing business as Royal Farms, has more than 13 years remaining on a NNN ground lease. The lease features 10 percent rental increases every five years during the base term and six, five-year option periods. The Tenant made a significant investment of $3 million to construct the building and the site’s improvements. The Property offers exceptional collateral and residual value, enhancing the safety and security of this investment. The store operates 24-hours per day and features 7 fueling pumps plus 3 diesel pumps under a separate canopy for large trucks.
PROMINENT FRONTAGE ALONG MD ROUTE 5 – The oversized 3.34-acre parcel is positioned along Maryland Route 5/Branch Avenue, a major north-south state highway connecting communities in Prince George's County, Charles County, and St. Mary's County. This segment of Route 5 features 73,745 vehicles per day and intersects with US Route 301/Crain Highway 1.5 miles south, a major north-south highway carrying 32,315 VPD. This site benefits from about 450 feet of road frontage on Route 5 providing exceptional sight lines.
BENEFICIARY OF SOUTHERN MD GROWTH – The Route 5 corridor connects Prince George’s County to the neighboring counties of St. Mary’s and Charles in Southern Maryland. Those counties saw significant increases in population over the last decade, behind only the Washington Metro Region (to which Prince George’s County is a part of). Charles County had an increase of 13.5% in population, while St. Mary’s County had the an increase of 4.30% change. The population growth is caused by the exurban migration from the Washington, DC and Baltimore regions and the job increase in St Mary's County, primarily at Naval Air Station Patuxent River.
HIGH-PERFORMING STORE – This location has performed very well since opening in 2020. Per geofencing data from Placer.ai, this store ranks in the top 40 percent both chainwide and within the state, with more than 517.3K annual customer visits.
EXPANDING REGIONAL GAS/CONVENIENCE CONCEPT – Privately owned and operated, Royal Farms has evolved from a local convenience store chain into a regionally recognized brand with 288 locations across Maryland, Delaware, Virginia, Pennsylvania, New Jersey, and West Virginia. With the brand’s multi-decade longevity and aggressive, multistate expansion strategy, the company will be well positioned to continue as a leader in the convenience/fuel industry for decades to come. Historically the chain has added 20-25 locations per year. Tenant financials and store sales reporting are available from the listing agent.
AFFLUENT DC METRO – Situated in Prince George's County, Brandywine is about 20 miles southeast of Washington, D.C. The community is known for its rural and suburban character, with a mix of residential, commercial, and agricultural areas. It has seen strong growth and development in recent years, in large part due to its convenient location to major transportation routes, including U.S. Route 301 and Maryland Route 5, and easy access to other parts of Maryland and the greater Washington, D.C., area. The three-mile population has increased more than 35% since 2010, and is projected to increase an additional 5.36% over the next five years. Presently, the dense, affluent community has 24,633 residents with an average household income of $162,476.
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