Inland Private Capital Corp. (IPCC) has sold a portfolio of a dozen 7-Eleven convenience store properties, located in northeastern Ohio, for a gross sale price of $35,329,302.
IPCC, through its subsidiary, which serves as asset manager, facilitated the sale of the portfolio on behalf of one of its 1031 investment programs.
The portfolio consists of 12 properties, totaling approximately 30,000 square feet, with more than 14 years remaining on their original 20-year absolute triple-net leases. The properties are located in various cities in northeastern Ohio.
IPCC had purchased the properties in a sale lease back and chose to divest them now as it was profitable for the the investors due to increased rents and cap rate compression, which led to increased values, an IPCC spokesperson told CSD.
“We purchased this portfolio in November 2013, and the investment was very successful due to the properties’ compelling location fundamentals. Each property is ideally situated in a dense retail corridor with strong traffic counts and good demographics,” commented Rahul Sehgal, chief investment officer of IPCC. “The result was a substantial return for our investors and an opportunity for them to invest a significant portion of the proceeds into another property owned by a different Inland-sponsored program.”
The portfolio was sold at a premium to the original acquisition price as well as the investors’ purchase price. Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 125.85% (calculated based on the aggregate amount of original capital invested in the portfolio). In addition, the sale resulted in a 17.52% internal rate of return (calculated using the time value of money, the cash flow from the portfolio’s operations and the proceeds from the sale to determine an annualized compounded rate of return, inclusive of all fees and expenses).
An IPCC spokesperson told CSD that the portfolio was purchased by a “private buyer” and the divested stores are located as follows:
1614 Merriman Road, Akron, OH 44313
15 Pearl Road, Brunswick, OH 44212
17664 Chillicothe Road, Chagrin Falls, OH 44023
1035 East 185th Street, Cleveland, OH 44119
5711 Heisley Road, Mentor, OH 44060
8 East Erie Street, Painesville, OH 44077
959 Steeles Corners, Stow, OH 44224
9202 S.R. 14, Streetsboro, OH 44241
16625 Royalton Road, Strongsville, OH 44136
8775 Darrow Road, Twinsburg, OH 44087
2481 SOM Center Road, Willoughby, OH 44094
2865 Bishop Road, Willoughby Hills, OH 44092