Eight of the 11 sites have 15-year leases.
The Issenberg-Britti Group of Marcus & Millichap Real Estate Investment Services, has been appointed as the exclusive advisor for the sale of 11 7-Eleven Corporate Gas Station Ground Leases located throughout the state of Michigan.
The ground leases are all held by and guaranteed by 7-Eleven Inc. The price is set at $19.5 million.
Ronnie Issenberg, vice president investments, and Gabriel Britti, associate vice president investments, of Marcus & Millichap’s Miami Office, are representing the seller, a Miami-based investment group.
“Eight of the 11 sites have 15-year leases. In this marketplace, with extremely limited inventory, long-term corporate leases are very desirable to the investment community. In the fourth quarter of 2012, we noticed a 40% uptick in our velocity of closings. We timed the release of this portfolio to coincide with the velocity of the fourth quarter,” said Britti.
“The portfolio is 100% occupied with absolute-net ground lease structures and 10-12.5% increases every five years with corresponding 10-12.5% increases in the option period renewals,” said Issenberg.
The properties are all located in Michigan at high-traffic, high-exposure primary intersections in Chesterfield, Clinton Township, Howell, Lenox Township, Macomb, Romulus, Shelby Township and Warren.