- Convenience store chain remains in high demand for single-tenant net lease investors despite higher interest rate environment
- SRS has 19 7-Eleven assets on the market or in escrow
SRS Real Estate Partners Capital Markets is pleased to announce that over the past 18 months, the firm has sold a total of 33 properties occupied by 7-Eleven valued at $242 million with the average cap rate of 5.27%. Additionally, SRS has 24 7-Eleven assets currently in escrow or on the market totaling a value of approximately $160 million. All the assets are single-tenant properties with 12 or more years remaining on the lease term.
“Over the last 12 months or so, we have observed that cap rates for 7-Eleven stores are holding steady despite the higher interest rate environment,” said Patrick Luther, CCIM, SRS Executive Vice President and Managing Principal. “Additionally, the absorption of 7-Eleven assets outpaces comparable credit tenants such as drug store and coffee brands and we have not seen values erode or cap rates rise as much for this brand. Investors are benefitting from the long-term stability, high traffic locations and strong credit rating of this internationally recognized chain.”
“For those investors looking to maximize the benefits of bonus depreciation and mitigate taxes, 7-Eleven offers the best credit of net lease tenants across the C-store and car wash sector,” said Patrick Nutt, Executive Vice President and Managing Principal with SRS. “There is an interesting juxtaposition between the slowdown of new store deliveries for 7-Eleven meeting with the constant need to offset ordinary income via depreciation, which has created a net effect of slightly compressing cap rates at a time when the broader NNN market has materially softened.”
“SRS has maintained transaction activity in the market because of the best-in-class credit that 7-Eleven provides and the benefits of bonus depreciation,” added Teddy Leonard Managing Director with SRS.
Founded in 1927, 7‑Eleven is the world’s largest convenience retailer and is a global brand with more stores than any other retailer in the world – more than 84,000 across 20 countries, according to its website. Earnings in 2023 were reported at $2 billion.
Over the past 18 months, SRS has sold 7-Eleven assets in California, Colorado, Connecticut Florida, Nevada, New York, New Jersey, North Carolina, South Carolina, Oklahoma, Tennessee, Texas, and has properties on the market in California, Florida, New Jersey, North Carolina, South Carolina, Tennessee and Texas.
Year to date, SRS Capital Markets has completed approximately $731 million in deal volume comprised of 182 transactions in 34 states. SRS currently has in excess of 698 properties actively on the market with a market value surpassing $3.7 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.