Thanking Heaven for 7-Elevens

CORONA DEL MAR, CA—With the increased volatility of the stock market and the desire to “simplify” their lives, investors are trading out of apartment buildings, shopping centers and the stock market and buying single-tenant net-leased investments that offer a secure, passive income stream. Hanley Investment Group‘s SVP Jeremy McChesney tells GlobeSt.com exclusively that 7-Eleven stores backed by a corporate lease can offer an attractive alternative to fast food, drug store, auto parts and bank single-tenant net-lease investments. 

McChesney knows what he is talking about. He has closed twelve 7-Eleven transactions in the last twelve months and currently has an additional three properties that are either listed for sale or in escrow. McChesney said he has been averaging a cap rate of 5.3% on his most recent 7-Eleven deals and has been able to outperform the market for the sale of single-tenant net-leased 7-Eleven stores by nearly 40 basis points. According to CoStar, 7-Eleven properties in California are trading in the mid to low 4% cap range and properties outside of California are trading between 5.25% and 6% depending on the lease term, McChesney reported.