Overview
KLNB Retail Capital Markets is pleased to offer for sale a newly constructed Royal Farms convenience store and gas station located at 21779 Tulagi Place in Lexington Park, Maryland. The store officially opened for business in March of 2025 and is situated at the gateway to the Patuxent River Naval Air Station, a key economic hub with approximately 20,000 employees. This property offers a strategic location at a signalized hard corner with high visibility and traffic flow of 40,000 vehicles per day. With a 20-year absolute triple net ground lease, investors can enjoy a passive investment opportunity with no landlord responsibilities. Rental increases of 10% every five years, starting in year 11, ensure consistent cash flow growth and inflation protection. Operated by Two Farms, Inc., Royal Farms is a well-established regional brand with over 300 locations, providing a trusted and reliable tenant for long-term stability.
Investment Highlights
- Brand-new Royal Farms with a 20 year long-term absolute NNN Ground Lease; zero landlord responsibilities, offering stable, handsoff income for investors.
- 10% rental increases every 5 years during the base term, and in each of the four, five-year renewal options, ensuring consistent cash flow growth and hedge against inflation.
- Established regional brand with strong market presence, operated by Two Farms, Inc., the parent company of Royal Farms, a trusted and well-known brand in the Mid-Atlantic with over 300+ locations.
- Ideally positioned at the signalized intersection of Great Mills Road and Three Notch Road (Rt. 235), the highest trafficked intersection in the submarket with a combined 40,000 vehicles per day (VPD).
- Royal Farms is strategically located at the primary access point to the Patuxent River Naval Air Station (NAS), a major economic anchor since the 1940’s with approximately 20,000 employees in the area.
- Positioned directly across from the Pax River Village Center, 25-acre grocery-anchored retail project under renovation, with an influx of national retailers to the submarket, including AMC Theatres, Aldi, Dollar Tree, Jersey Mike’s, Bank of America, and Starbucks which cultivates a destination retail environment.
- Affluent consumer base in a high-quality of living location: 29,000 residents earning $113,000 average household income within a 3-mile radius with projected population and income growth through 2029.
- Tremendous employment corridor with daytime population increasing to 35,500 within 3-miles radius.
Growing Submarket with Robust Daytime Population
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