Clean Travel Plaza Fund
The Problem
The fund team has identified a hole and need in the market for Travel Plazas
Government jurisdictions, oil companies, and industrial real estate developers have overstepped the vital ingredient of Travel Plazas and truck services related real estate. The same metrics that we saw years ago for gas stations is now evolving into Travel Plazas. Everyday there are millions of packages delivered to homes and businesses. These packages are delivered through of the complex logistics and highway systems.
There is a rush to entitle and construct distribution centers. The California Transportation Commission and CalTrans both forecast increasing truck and freight traffic on California highways. Our fund focuses directly on the overlooked but needed commercial real estate development for trucks. Truckers need ONE place to get fuel, alternative fuel, repairs, maintenance, food service, truck wash, and parking. Cities and Counties are communicating that travel plazas are needed and yet there is a lack of these projects.
These properties are 8 – 20 acres and will contain all truck services necessary for freight movement. The services will be fuel (fossil fuel, natural gas, hydrogen, and electricity), food services, truck parking, truck repair and maintenance, and truck washing.
Specific jurisdictions welcome this product because of the safety measures and tax generating income.
Identify, acquire, and develop large transportation hub properties along highways and interstates.
The Solution
MARKET CONDITIONS & COMPETITION
Market Conditions
The service station industry is booming, corporate tenant properties are valued in the lower 4 CAP range. These corporate tenants are now setting their sights on larger format sites where truck and freight services are offered.
Competitors
The industry is fragmented between publicly traded firms (Pilot, Loves, and TA) and single site operators.
