Hanley Investment Group Arranges Sales of Two New Construction 7-Elevens in Riverside County, Calif., for $10.15 Million

Hanley Investment Group Arranges Sales of Two New Construction 7-Elevens in Riverside County, Calif., for $10.15 Million
The pre-sale transactions represented record pricing in the Inland Empire for two new build-to-suit 7-Eleven C-Store/Gas Stations. (Stock photo courtesy of 7-Eleven)

INDIO & PERRIS, Calif. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the pre-sales of two new properties leased by 7-Eleven in Riverside County, California, to two different buyers. 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, California, 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. 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, California, represented by Rick Lazar at Lee & Associates in Riverside, California. 

Indio is the largest and fastest-growing city in the Coachella Valley with over 92,000 people. Indio's population has grown over 120% since 2000, making it one of the fastest-growing cities in California. Additionally, Indio attracts over 1.4 million visitors each year. It is home to the Coachella Valley Music and Arts Festival (over 250,000 visitors) and the Stagecoach Festival (over 85,000 visitors). Riverside County Fair and the National Date Festival attract 315,000 visitors. Fantasy Springs Resort and Casino, a 12-story, 250-room luxury hotel and a 100,000-square-foot special events and entertainment center, is also a popular destination in Indio.

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, both of which have exits off nearby freeways. Perris Boulevard, which is the main arterial in the trade area, connects to U.S. Highway 60 to the north (110,000 cars per day). Harley Knox Boulevard feeds directly to and has its own exit off Interstate 215 (145,000 cars per day).

The sale price of the single-tenant 7-Eleven in Perris 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 Corporation in Beverly Hills, California.

The 7-Eleven site in Perris 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 centers 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 food service 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 (S&P: AA-) like 7-Eleven that can do well during challenging times and provide a reliable cash flow," said Asher. 

"Furthermore, single-tenant net-lease convenience stores with gas stations (along with car wash properties) offer tax benefits of bonus depreciation, which is very attractive to buyers," Asher said. "With the bonus depreciation tax benefits scheduled to decline by 20 percentage points each year until 2027, buyers will continue to take advantage of purchasing these types of assets in 2023. The amount of bonus depreciation will be 80% in 2023. In 2024, the level will be reduced to 60%, 40% in 2025, and 20% in 2026."

Asher continues, "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. 

About Hanley Investment Group 

Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $10 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients' needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.

For more information, visit www.hanleyinvestment.com.

Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Bill Asher, Executive Vice President
Email: Send Email
Phone: 949.585.7684
Address:3500 E. Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/

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