Travel Center / Truck Stop Land Acquisition
Warren Buffet recently invested an additional $8.2 billion in a Travel Center operator. Why does he invest in Travel Centers / Truck Stops? Because they provide strong returns with measured risk. Now you can invest in the same category and also achieve strong returns with measured risk by providing the essential component to his strategy – LAND. It’s time to consider a different commercial real estate investment strategy: Travel Center / Truck Stop land acquisition.
PWD Aslan Investment Funds are structured to invest in properties that exhibit all of the characteristics that Travel Center operators desire. As a prerequisite to closing on any site, the property will have been rezoned to commercial and received DOT (Department of Transportation) approval for critical access points. Especially encouraging, acquisition targets will have serious interest or negotiated LOIs for a future sale/lease before we ever acquire the property. Aslan has been successfully involved with truck-related real estate and we recognize a strong market for supply chain-related projects.
It should be noted, a PWD Aslan Investment Fund is not a land banking play or a long-term hold. The value is created during the 12-24 months before acquisition, while we assemble and entitle sites for lease/sale to Travel Center operators. Furthermore, no construction is involved – the operator will oversee the construction of their new facility as is common in the industry.
- Diversified Fund Structure: A PWD Aslan Fund normally provides diversification to investors with several properties located in different markets and across 2 or more states. Furthermore, in a crossed-fund structure (as opposed to raising capital for each deal independently), the Sponsor is incentivized to achieve sale success on all assets to earn its profit sharing. As such, there is an alignment of interest for all parties.
- PWD Aslan Development Team: With over 90 years of combined real estate experience and more than 30 years of experience with the country’s leading real estate development firms and largest c-store operators, our principals possess a fundamental understanding of real estate development and all aspects of the travel center/c-store business.
- “Off Market” Purchases: Properties are typically sourced off-market. We identify ideal Travel Center locations and then approach the landowners to acquire their land.
- Risk Mitigation: (i) We have confirmed tenant demand (often with LOIs signed), (ii) key entitlements are completed prior to PWD Aslan Investment Funds purchasing a property, (iii) conservative contingency reserves are budgeted to protect against increasing expenses, (iv) minimal leverage is structured in a Fund, and (v) property purchase prices are below true market values.
For more information on the latest PWD Aslan Investment Funds, please select the brochure tab below.
