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12/07/20
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Two 7-Eleven investment properties in California sold in separate transactions totaling $3.45 mil. The deals include a single-tenant 7-Eleven in Santa Maria and a two-tenant 7-Eleven property in Fresno.
The single-tenant, 2.4k sf 7-Eleven property is located at 1104 S. Blosser Rd in Santa Maria (in northern Santa Barbara County) on 0.31 acres at the intersection of S. Blosser Rd and Pershing St. The property sold for $1.65 mil ($688/sf), representing a cap rate of 4.55%.
Jeremy McChesney with Hanley Investment Group Real Estate Advisors represented the seller, Equitas Investments of Hermosa Beach. The buyer, a private investor from Fowler, CA, was repped by Luc Hawkshaw of Apex Properties.
“7-Eleven has been operating at the Santa Maria location for 46 years and had recently extended the lease,” said McChesney. “The tenant has an absolute triple-net lease, which means the investment requires little to no landlord responsibilities. 7-Eleven’s rental increase in 2025 provides a hedge against inflation plus the tenant has options to extend.”
2414-2418 North Fruit Ave, Fresno |
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The two-tenant 7-Eleven property in Fresno that sold is located at 2414-2418 North Fruit Ave and is also occupied by Sud’s Laundry Hub, a coin laundry operation. Both tenants have been at the center for over six years and 7-Eleven recently extended its lease, demonstrating its continued commitment to the location.
The 4.6k sf property, which consists of a 3.1k sf 7-Eleven and 1.5k sf coin laundry, is situated on 0.48 acres at the signalized hard corner intersection of N. Fruit Ave and W. Clinton Ave. The two-tenant property sold for $1.8 mil ($391/sf), representing a 5.65% cap rate.
McChesney represented the seller, a private partnership based in Fresno. The buyer, a private investor from Los Angeles, was self-represented by Sandra Miller of Engel & Volkers.
According to McChesney, both the 7-Eleven and coin laundry operation, are deemed essential businesses by the government and have been allowed to operate without any pandemic-related restrictions. Furthermore, the dual-income stream of two internet-resistant tenants offers an investor a layer of protection.
“7-Eleven is one of the largest, most successful retailers in the U.S., and the company’s operating success as an ‘essential business’ during the pandemic further accentuates the attractiveness of this investment grade tenant,” McChesney noted. “Both 7-Eleven stores – the one in Santa Maria and Fresno – were strong performing locations with above-average sales in dense, infill locations.”
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