Madison Capital Markets Launches Madison Convenience Fund I, LLC
Madison Capital Markets, an affiliate of Madison Capital Group, has launched Madison Convenience Fund I, LLC, a private real estate investment fund targeting a capital raise of $125 million to meet the growing demand for high-quality convenience and gas station facilities across the United States.
FreshStop, founded by Ryan Hanks, chief executive officer of Madison Capital Group, is at the core of this initiative. The fund’s strategy is to acquire, improve, and operate modern convenience stores in high-growth markets with favorable demographics and minimal competition. Daily operations will be managed by FreshStop to deliver performance through innovation, operational efficiency, and a focus on community-centric service.
“Madison Convenience Fund I represents our continued commitment to providing investors with opportunities to preserve capital and generate tax-advantaged, risk-adjusted returns by investing in essential retail assets in some of the country’s most promising markets,” said Hanks.
The fund will acquire underperforming or newly constructed single-tenant convenience and gas station properties leased by national tenants with corporate guarantees. It will prioritize acquisitions eligible for accelerated bonus depreciation, allowing investors to benefit from immediate tax advantages.
Fresh Stop leverages technology, including advanced point-of-sale systems, inventory management software and real-time fuel monitoring, to drive operational efficiencies and enhance the customer experience. This supports high-volume sales and positions the portfolio for stable cash flows and positive returns.
According to Madison Capital Markets, the U.S. convenience store sector is highly fragmented with 80% of 150,000 stores owned by single-location operators, creating strong consolidation potential. Steady daily demand, 5% to 6% cap rates, and rising tech adoption all enhance operational efficiency, revenue, and investment appeal.
In May 2024, the company launched the $100 million Madison Net Lease IV Fund, a similar fund to acquire and manage convenience store assets, particularly focused on states with no income tax like Florida, Tennessee, and Texas.
Madison Capital Markets is known for its expertise in structuring 1031 exchanges. The firm specializes in multifamily, self-storage, boat & RV storage, and commercial investments.
As an industry leader with a proven track record of over $6 billion in real estate transactions, Madison Capital Group, headquartered in Charlotte, N.C., is well-positioned to leverage strategic partnerships, market insights, and its acquisition platform to deliver consistent revenue growth, high profit margins, and long-term capital appreciation. It specializes in real estate investments, focusing on the self-storage and multifamily sectors. The company is the parent entity of Go Store It Self-Storage, a non-traded direct investment sponsor emphasizing self-storage, and Madison Communities, a vertically integrated real estate development and investment firm dedicated to apartment communities throughout the Southeast.
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