NEW YORK— Net lease retail cap rates have been sinking recently as investment activity picked up. As reported in GlobeSt.com, pharmacies run by high credit tenants have been in especially high demand by net lease investors.
Marcus & Millichap Real Estate Investment Services, for example, has just arranged the sale of a 12-property 7-Eleven store and gas station portfolio located in Ohio. Glen Kunofsky and Russell Wachtler in Marcus & Millichap’s Manhattan office advised the buyer and seller, both large institutions. Michael Glass, vice president and regional manager of the firm’s Cincinnati, Cleveland and Columbus offices is Marcus & Millichap’s broker of record in Ohio.
“The institutional market for net-leased assets continues to be extremely strong,” says Wachtler. “The strong corporate credit of 7-Eleven, combined with the annual rental increases, created a very competitive bidding environment for the portfolio.”
“There was a significant amount of upside for investors related to site renovations at each location, post portfolio acquisition,” says Kunofsky. “All of the properties are in excellent locations with great visibility and will be completely remodeled and branded to meet new standards for 7-Eleven.”
7-Eleven operates, franchises and licenses 8,600 stores in the United States and Canada. Of the approximately 7,600 stores the company operates and franchises in the U.S., close to 5,700 are franchised.