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ARCO NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

ARCO NNN Properties, ARCO Ground Lease Properties, ARCO Net Lease, ARCO Cap Rates, ARCO Lease Terms, ARCO Tenant Credit, ARCO Real Estate, ARCO Gas Station Properties, ARCO Investment Properties, 1031 Exchange, NNN Properties, Ground Lease Properties

Last Year Cap

5.8%

This Year Cap

7.0%

Cap Change

1.2%

Last Year Rating

BBB

This Year Rating

BBB

Rating Change

No change

ARCO – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate
1031 Exchange
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Credit (what net-lease buyers care about)

Credit Snapshot

ARCO

Cap Rates NNN
Last Year 5.8%
This Year 7.0%
Change 1.2%
S&P Rating CREDIT
Last Year BBB
This Year BBB
Change No change

ARCO Net Lease: Secure, Essential Investment

ARCO is a widely recognized fuel and convenience retail brand with locations serving everyday transportation and convenience needs. This guide reviews ARCO net lease properties, cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.

For 1031 exchange buyers, ARCO Ground Lease Properties can be important to compare with fee-simple ARCO assets, as lease structure, remaining term, rent escalations, and ownership rights can materially affect pricing, financing, and long-term resale value.

Investors often evaluate ARCO assets for:

  • Essential Fuel & Convenience Demand
  • High-Traffic Retail Locations
  • Long-Term Net Lease Potential
  • Strong Visibility and Accessibility

ARCO Ground Lease Properties for 1031 Exchange Buyers

ARCO Ground Lease Properties can trade differently from fee-simple properties because investors may own the underlying land while the tenant operates the fuel and convenience retail business under a long-term ground lease. Buyers should carefully evaluate the lease structure, remaining term, renewal options, rent increases, environmental obligations, maintenance responsibilities, and reversion rights to understand the property’s long-term risk and return potential.

ARCO – Credit Trend (S&P vs Moody’s)

Tenant_Rating_Trend

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
1 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2022 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
2 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2023 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
3 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2024 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
4 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2025 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
5 admin2 2025 03:43 PM admin2 2025 03:43 PM 99centsonlystoresllc 99 Cents Only Stores, LLC 2022 Caa2 CCC+ Substantial Risk Substantial Risk 2 2
TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
MPC stock price  by TradingView

ARCO Investment Market Statistics

AVERAGE SALE PRICE

$5,700,000

BUILDING SIZE

3,000 – 3,500 SF

AVERAGE NOI

$264,000

LAND

0.5 – 1.5 acres

$/SF RANGE

$1,600 – $2,650

LEASE TERM SHOWN

15 years

ARCO Investor Snapshot (Quick Facts)

Origins & Growth (Past)

• Founded in 1966 as a West Coast fuel brand
• Built a strong presence across California and the Western U.S.
• Expanded its network of gasoline stations and convenience locations
• Became known for value-focused fuel pricing
• Expanded the ARCO brand into additional U.S. markets
• Marathon Petroleum acquired the ARCO trademark rights in 2018

 

Where ARCO Stands Today

• More than 1,500 locations across the West Coast, Mexico and East of the Rockies
• Strong presence across California and Western markets
• Gasoline stations often paired with ampm convenience stores
• TOP TIER™ gasoline offered across ARCO locations
• Multiple payment options, including cash, debit, credit and mobile wallet at participating locations

Where ARCO Stands Today

• Continued expansion into additional U.S. markets
• Greater adoption of digital and mobile payment options
• Growth of ARCO Rewards and customer loyalty programs
• Continued focus on fuel value and convenience
• Expansion of fleet and business payment solutions

 

Why investors buy ARCO NNN Properties or ARCO ground Lease Properties?

Pros (what buyers like)

  • Essential Fuel & Convenience Use
    Gasoline and convenience retail support recurring consumer demand
  • Strong Brand Recognition
    ARCO is a well-established fuel brand with a strong regional presence
  • High-Traffic Locations
    Many sites benefit from strong visibility, vehicle traffic, and convenient access
  • Attractive Lease Structures
    Long-term NNN or ground leases can appeal to passive and 1031 exchange buyers

 

Cons (what can bite you)

  • Environmental Considerations
    Fueling properties require careful review of tanks, contamination, and environmental reports
  • Lease Structure Variability
    Some assets may be NN, NNN, or modified NNN with varying landlord responsibilities
  • Fuel Competition
    Nearby stations can affect site performance.
  • Re-Tenanting Challenges
    Specialized fueling infrastructure can limit alternative uses.

Find out more

ARCO NNN Properties, ARCO Ground Lease Properties, ARCO Net Lease, ARCO Cap Rates, ARCO Lease Terms, ARCO Tenant Credit, ARCO Real Estate, ARCO Gas Station Properties, ARCO Investment Properties, 1031 Exchange, NNN Properties, Ground Lease Properties

ARCO Background & History

ARCO is a well-established fuel and convenience retail brand with a long operating history in the U.S. The brand has evolved through several ownership changes and is currently owned by Marathon Petroleum Corporation, which acquired the ARCO trademark through its acquisition of Andeavor in 2018. ARCO has maintained a strong presence in fuel retail, particularly across the West Coast and other U.S. markets.

Over time, ARCO has developed a recognizable network of fueling locations serving everyday transportation needs. Many ARCO locations combine gasoline sales with convenience-store offerings, creating a service-oriented retail model that depends heavily on traffic, accessibility, visibility, and the strength of the surrounding trade area.

Why ARCO Matters to NNN Investors

ARCO properties can be relevant to NNN investors because fueling stations and convenience stores provide an essential, recurring-use retail service. Location quality is particularly important because customer demand is closely tied to traffic counts, accessibility, visibility, nearby residential and commercial density, and the competitive fuel landscape.

For investors evaluating an ARCO net lease or ARCO ground lease, the underlying real estate can be just as important as the brand itself. Prime corners, strong ingress and egress, high traffic counts, signalized intersections, and established surrounding trade areas can help support long-term property demand.

What Buyers and Sellers Should Evaluate

For investors evaluating ARCO NNN properties, an ARCO net lease, or an ARCO ground lease, the investment thesis is typically centered on real estate quality, lease economics, tenant or operator credit, and the long-term usability of the site.

Common searches include ARCO real estate, ARCO cap rate, ARCO lease term, ARCO tenant credit, ARCO NNN properties, and ARCO ground lease properties. Ultimately, ARCO net lease value is driven by site-specific factors, lease structure, rent levels, remaining term, and the property’s ability to attract future users.

Corporate vs. Franchise | Store Count

ARCO operates through a combination of company-affiliated and independently operated retail locations. For NNN investors, the key consideration is the actual lease guarantor and financial strength of the tenant/operator rather than the ARCO brand alone. Investors should evaluate the specific operator, lease structure, guarantees, and location quality when underwriting an ARCO property.

ARCO Financial Snapshot

ARCO is a major fuel and convenience retail brand owned by Marathon Petroleum Corporation. Its investment relevance comes from established brand recognition, recurring fuel demand, and a broad retail footprint. For NNN investors, tenant credit, lease obligations, rent coverage, and the financial strength of the actual lease guarantor are important factors when evaluating long-term income stability.

ARCO Lease Types

ARCO properties may be structured as NN, NNN, or modified NNN leases, depending on the individual transaction. Landlord responsibilities can vary and may include certain structural, roof, maintenance, or site obligations. Buyers should review lease language, rent escalations, renewal options, guarantees, remaining term, environmental responsibilities, and underwriting assumptions. Investors should also evaluate tenant credit and potential re-tenanting costs before pricing an ARCO net lease or ground lease property.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing ARCO ground lease properties or fee simple ARCO assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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