Hanley Investment Group Sells New Construction 7-Eleven and Starbucks Drive-Thru in Merced, Calif., for $8.2 Million

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MERCED, 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 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, California. The two properties were purchased by two individual private buyers in separate transactions. The combined sales price was approximately $8.2 million.

In both transactions, Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer and seller, Glendale, California-based Chase Partners Ltd., a leading retail and industrial developer in California since 1993 and a preferred developer for 7-Eleven and several other national tenants.

The 7-Eleven-leased investment, which had a 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, California.

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

7-Eleven Convenience Store and Gas Station
Constructed in 2023, the 4,088-square-foot 7-Eleven convenience store is located on a 1.15-acre parcel at 1995 West Olive Avenue at the signalized intersection of California Highway 59 and Olive Avenue (over 38,000 cars per day). Nearby national retailers include Walmart, Lowe’s, Hobby Lobby, Target, Kohl’s, JCPenney, Ashley Home Store, Dollar Tree, Panda Express, Ross Dress For Less, PetSmart and others.

“We generated multiple qualified offers for the new construction 7-Eleven and secured an all-cash high-net-worth buyer through a cooperating broker relationship,” said Asher. “The non-exchange buyer was seeking a passive triple-net investment that offered bonus depreciation benefits for their portfolio. We negotiated a 21-day due diligence period and closed escrow in 30 days from a mutually signed Letter of Intent.”

Hanley Investment Group has sold 38 7-Eleven retail investments in the last four years, including recent sales in Beaumont, El Centro, and Indio, California. In mid-January, Hanley Investment Group’s Asher and Lefko completed the sale of a brand-new construction single-tenant 7-Eleven convenience store with Laredo Taco Company quick-serve restaurant and a gas station in San Bernardino, California, representing the developer and seller, Chase Partners Ltd.

Starbucks Drive-Thru
Located at 1993 West Olive Avenue, the 1,000-square-foot Starbucks drive-thru-only building sits on a 0.83-acre parcel adjacent to the new 7-Eleven convenience store and gas station.

“We negotiated a seven-day due diligence period and a 12-day escrow with an all-cash 1031 exchange buyer based in Southern California,” said Asher. “The new Starbucks location was an expansion store in the trade area to relieve pressure from an existing highly successful store down the street.”

Hanley Investment Group is also a market leader in the sale of Starbucks investments in the U.S. and has sold 55 Starbucks properties in California. Among these are the recent sales of a brand-new construction Starbucks with a café and double-drive-thru in Visalia, which sold for $3.4 million, and a Starbucks Drive-Thru in Los Angeles, built in 2017 and located approximately one mile from the University of Southern California that sold for $3.25 million.

Merced, known as the “Gateway to Yosemite,” is less than two hours from Yosemite National Park and approximately 45 miles from Fresno, 110 miles from Sacramento, and 270 miles from Los Angeles.

The University of California, Merced (8,544 students, 1,537 employees), which is a 15-minute drive from the 7-Eleven and Starbucks-occupied properties, recently completed a $1.3 billion expansion initiative. This initiative is projected to bring an additional 3,500 students to Merced over the next three years.

Since 1980, Merced’s population has grown faster than the state average and has experienced a 44% increase since 2000. In 2020, Merced had the highest percentage growth rate of any other city in California. The city’s current population is estimated to be more than 91,500; Merced County’s population is estimated to be over 290,000.

According to Asher, “Passive retail Investors continue to look to single-tenant properties leased to well-established brands such as 7-Eleven and Starbucks for fixed, reliable returns in today’s market. These investments provide a stable income stream, require minimal day-to-day management, and feature corporate long-term lease agreements with corporate tenants. Furthermore, in times of market volatility, they represent a safe haven, offering security and quality in an uncertain landscape.”

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