The Newport Beach-based SRS Real Estate Partners Capital Markets team has sold a total of 33 7-Eleven-occupied properties over the past 18 months, valued at $242 million with an average cap rate of 5.27%.

Additionally, SRS has 24 7-Eleven assets currently in escrow or on the market with a combined value of approximately $160 million. All the assets are single-tenant properties with 12 or more years remaining on the lease term.

“Over the past 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, SRS EVP 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.”

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 and Texas. The company has properties on the market in California, Florida, New Jersey, North Carolina, South Carolina, Tennessee and Texas.

Hanley Investment Group Real Estate Advisors arranged the sale of two brand-new construction, single-tenant properties occupied by a 7-Eleven convenience store with a gas station and the adjacent Starbucks, a drive-thru-only prototype in Merced. The two properties were purchased by two individual private buyers in separate transactions for a combined price of approximately $8.2 million.

In both transactions, Hanley EVPs Bill Asher and Jeff Lefko represented the developer and seller, Glendale-based Chase Partners Ltd., a leading retail and industrial developer in California since 1993.

The 7-Eleven-leased investment, with new corporate 15-year triple-net lease, sold for $5.29 million. The buyer, a private investor from Los Angeles, was represented by Nicholas Borrelli of Coldwell Banker Commercial George Realty in Arcadia.

The Starbucks-leased investment, with a new corporate 10-year triple-net lease, sold for $2.9 million. The buyer, a private investor from Los Angeles, was represented by Los Angeles-based Michael Mehdizadeh.

It’s no secret that convenience store companies are as much in the real estate business as in retail. Very often, flipping a shrewdly bought parcel makes considerably more than selling super-sized soft drinks. One such instance is the recent sale of a 7-Eleven in Nashville.

The Nashville Business Journal reports a Nashville developer paid $31 million for a downtown 7-Eleven. The convenience store giant paid $7.85 million for the 1.18-acre property at 1101 Broadway in January 2018.

Texas-based Endeavor Real Estate, who developed a nearby mixed-use Broadway tower anchored by a Whole Foods, bought the downtown property. The 7-Eleven site is located across the street from the Whole Foods tower and less than two blocks away from two of the company’s residential highrises. The developer has plans for a high-end hotel and residential tower at the corner of 12th Avenue and McGavock Street. The recently acquired 7-Eleven property neighbors the site.