Dive Brief:
- Madison Capital Group has acquired four convenience stores in Texas that it plans to convert to its Fresh Stop banner, the real estate investment and development firm announced this week.
- Two of the stores are located in San Antonio, while the others are in Corpus Christi and Fort Worth, according to the announcement. The purchase price was $13.2 million. Representatives from Madison did not respond by press time when asked who the seller was.
- The deal reflects Madison’s broader growth plans, which include raising $200 million from investors to open more Fresh Stop and Links Car Wash locations.
Dive Insight:
The acquisition will expand Fresh Stop’s presence in Texas, where the convenience retailer has five stores in Trinidad, Corsicana, Frankston and Lake Worth, all of which offer Sunoco-branded fuel, according to its website. The retailer also has another c-store in development in Driscoll.
Madison said it will introduce Fresh Stop’s branding, layout and product assortment to each of the four locations. It will also “evaluate opportunities to add amenities and operational upgrades that streamline and enhance the in-store experience.”
The $13.2 million used to purchase these convenience stores was fully funded by Madison’s investors as part of a Delaware Statutory Trust that’s now fully subscribed, according to the announcement. Jeff Kremin, president of Madison Capital Markets, said the deal “reflects strong investor confidence” that the c-store sector is a low-risk, high-reward play.
“Fresh Stop leverages state-of-the-art technology that diversifies revenue streams, supports high-volume sales, and positions the portfolio for stable cash flows and positive returns,” Kremin said in the announcement.
In March, Madison’s CEO Ryan Hanks told C-Store Dive that the $200 million Madison is asking investors for would be used to add roughly 20 to 30 Fresh Stop c-stores and the same amount of Links car washes. If those goals are achieved, each banner would roughly double its current location count.
