Two new properties leased by 7-Eleven in Riverside County, Calif., have had their pre-sales to two different buyers arranged by Hanley Investment Group Real Estate Advisors. The two sales represent a combined total of $10.15 million.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the sellers, TSC Perris LLC and TSC Indio Golf Center LLC, based in Newport Beach, Calif., in both transactions.
“We successfully executed a pre-sale marketing strategy for each of the properties, generated multiple qualified offers and procured two separate Southern California-based 1031 exchange buyers, achieving record pricing and closing escrow before construction was completed and the stores open for business,” said Asher. Both stores are scheduled to open sometime in the second quarter of 2023.”
In the first transaction, Asher and Lefko completed the sale of a new construction 3,494-square-foot 7-Eleven convenience store and gas station on a 1.03-acre parcel at the signalized intersection of Golf Center Parkway and Avenue 45 in Indio, Calif. The property benefits from a 25-foot pylon sign visible from the Interstate 10 freeway, which is located less than a quarter mile from the site. The sale price was $5.15 million, representing $1,474 per square foot. The buyer was a private investor from San Bernardino County, Calif., represented by Rick Lazar at Lee & Associates in Riverside, Calif.
In the second transaction, Asher and Lefko completed the sale of a new construction 2,950-square-foot 7-Eleven convenience store and gas station on a 0.98-acre parcel at the signalized intersection of Perris Boulevard and Harley Knox Boulevard in Perris, Calif., both of which have exits off nearby freeways.
The sale price of the single-tenant 7-Eleven in Perris, Calif., was $5 million, representing $1,695 per square foot. The buyer, a private investor based in Los Angeles, was represented by Pooya Dayanim of Dayanim Real Estate Corp. in Beverly Hills, Calif.
The 7-Eleven site in Perris, Calif., is ideally located in the heart of a major, rapidly growing distribution and logistics hub with more than 46 million square feet of existing distribution center space (and 13 million square feet planned or under construction), including national companies such as Amazon, Fallas, The Home Depot, Lowe’s, O’Reilly Auto Parts, Proctor & Gamble, Sketchers, Ross Dress for Less and Walgreens, creating significant demand for daily goods and services in the trade area.
7-Eleven has more than 71,000 locations globally (11,800 in the U.S.) and $120 billion in annual sales and has more units than any other retailer or foodservice provider in the world. Furthermore, 7-Eleven consistently ranks as one of the top U.S. franchises.
According to the company, 7-Eleven was the first convenience store to offer ATM services and sell gas. It was also the first convenience store to remain open 24 hours a day, seven days a week.
“7-Eleven is one of the most sought-after single-tenant investments across the country in today’s market. 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 accentuated the attractiveness of this investment-grade tenant,” noted Asher.
“As investors look to the future and have concerns about potential economic instability, buyers are seeking essential businesses with a high credit rating like 7-Eleven that can do well during challenging times and provide a reliable cash flow,” said Asher. “For all of these reasons, we expect that sales volume for single-tenant 7-Eleven net-leased retail investments will remain strong in 2023.”
Hanley Investment Group has sold 45 single-tenant 7-Eleven properties valued at $170 million in the last four years.