The SRS Real Estate Partners Capital Markets team, based in Newport Beach, has successfully sold 33 properties occupied by the popular convenience store chain 7-Eleven in the past year and a half. These sales have amounted to a total value of $242 million with an average cap rate of 5.27%. Currently, there are an additional 24 assets either in escrow or on the market with a combined value of approximately $160 million. All these properties are single-tenant and have at least twelve years left on their lease terms.
According to Patrick Luther, Executive Vice President and Managing Principal at SRS Real Estate Partners, despite rising interest rates, cap rates for 7-Eleven stores remain stable compared to other credit tenants such as drug stores and coffee brands. The demand for these assets is also higher than comparable tenants due to their strong credit rating and prime locations that attract high traffic.
SRS has successfully closed deals for various 7-Eleven properties across multiple states including California,Texas,Nevada,and New York among others over the past eighteen months.The company currently has listings available in several states including Florida,Tennessee,and North Carolina among others.This success can be attributed to investors recognizing the long-term stability offered by this internationally recognized brand along with its strong financial standing.
This article was originally published on Connect CRE’s website.
