Promontory Development Group, a private developer in the Sacramento area, sold a newly constructed, single-tenant, net-leased ARCO ampm in Stockton to a private investor from Sonoma County, Calif., for $10.2M.
The property, which includes a fuel station, convenience store, car wash and EV charging, marks the highest price and price per square foot for a convenience store and fuel station in California in the past three years, according to CoStar.
Property: ARCO ampm in Stockton, Calif.
Price: $10.2M
Seller: Promontory Development Group
Buyer: Private investor
Located at 9036 Thornton Road, the 3,400-s.f. building sits on 1.48 acres and is secured by a new 15-year absolute triple-net lease guaranteed by BP Products North America Inc., a subsidiary of BP plc. The lease includes both land and improvements, offering minimal landlord responsibilities and long-term stability.
Thornton Road, designated as County Route J8, is one of Stockton’s busiest thoroughfares, with average daily traffic of about 24,000 cars.
“We generated multiple qualified offers from private and institutional investors,” said Bill Asher, EVP of Hanley Investment Group, who represented the seller. “We procured an all‑cash 1031 exchange buyer based in the Bay Area who was a repeat buyer of convenience-store and fuel station assets familiar with the ARCO ampm brand and BP corporate net lease structure.”
“Very few of these types of assets trade above $10M on a regular basis in California. We helped the buyer understand the strength of the ARCO ampm brand backed by a BP Products North America corporate absolute net lease structure, with an expanded prototype store that included fuel, a convenience store, car wash and EV charging — features that justified a higher premium annual rent. The opportunity to take advantage of the reinstated 100% bonus depreciation was also a contributing factor,” Asher added.
