Valero

Interested in selling your Valero NNN property or Valero ground lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Valero NNN property for sale or Valero ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Valero NNN property or the inclusion of a Valero ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Valero properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Valero has over 5,900 stores in 40 states across the United States. Of these, over 2,900 are located in Texas.

Revenue and income

In 2022, Valero’s total revenue was $121.4 billion. Net income was $3.5 billion.

Future plans

Valero plans to continue expanding its global footprint. In 2023, the company aims to open over 1,500 new stores worldwide. Valero also invests in new technologies, such as enhanced fuel efficiency and digital payment systems.

Corporate vs. franchise

About 60% of Valero stores are franchised. The remaining 40% are corporate-owned. Franchisees typically pay a franchise fee of $15,000 to $30,000 and a royalty fee of 6% of gross sales.

Additional information Valero Properties

Valero was founded in 1980 in San Antonio, Texas.
The company’s name is derived from the Spanish word “valero,” meaning valor or bravery.
Valero is one of the world’s largest petroleum refining and marketing companies.
The company’s most popular products include gasoline, diesel, and convenience store items.
Valero is a publicly traded company listed on the New York Stock Exchange (NYSE: VLO)

Valero History

Valero traces back to 1966 when William I. Koch purchased numerous small refineries and merged them to create the San Antonio Refining Company. The company later changed its name to Valero Energy Corporation in 1980 and embarked on a period of rapid expansion through acquisitions and organic growth. Valero became a significant player in the refining and marketing petroleum products, operating refineries across the United States, Canada, the Caribbean, and Europe. Throughout its history, Valero has consistently focused on operational efficiency and cost-cutting, which has enabled it to achieve profitability even during volatile market conditions. In 2023, Valero completed the acquisition of PBF Energy, solidifying its position as the largest independent refiner in the world. Today, Valero continues to evolve, investing in renewable energy sources and exploring opportunities in the low-carbon economy.

Why Invest in Ground Lease and NNN Lease of Valero?

Investing in Valero’s ground lease and triple net (NNN) lease properties offers attractive benefits:

1) Valero NNN Property Investment: Stable income

With a strong track record of profitability and steady cash flow generation, Valero offers reliable income streams. Ground and NNN leases provide predictable rental income over the long term.

2) Valero NNN Property Investment: Established tenant

Valero’s size, financial strength, and brand recognition reduce the risk of vacancy or lease default, ensuring a stable tenant for the property.

3) Valero NNN Property Investment: Low management responsibility

In-ground and NNN leases, Valero manages property maintenance and expenses, minimizing the landlord’s management obligations.

4) Valero NNN Property Investment: Favorable lease terms

Long lease terms with built-in rent escalations provide predictable income and potential rental growth.

5) Valero NNN Property Investment: Real estate value

Valero’s strategic locations in high-traffic areas can increase property value, offering potential capital appreciation.

Pros and Cons of Valero Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established and financially strong company.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.

Cons:

1. Lease renewal risk when the term expires.
2. Dependency on Valero’s success and operational challenges.
3. Market fluctuations and competition in the fuel industry can affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.

Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.