The 7-Eleven is one of the first new-format locations to sell in Southern California.
A new 7-Eleven location in San Bernardino, Calif., has been sold to a private investor from Bakersfield, Calif. The sale was arranged by Hanley Investment Group Real Estate Advisors. The sale price was $7,726,613, resulting in one of the lowest cap rate sales for a single-tenant 7-Eleven in California, priced over $7 million in the last 12 months.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer and seller, Glendale, Calif.-based Chase Partners, a leading retail and industrial developer in California since 1993 and a preferred developer for 7-Eleven and several other national tenants. The buyer, a private investor from Bakersfield, California, was represented by Jeff Leggio of ASU Commercial.
“We secured an all-cash 1031 exchange buyer through a broker relationship and negotiated a two-week due diligence period with a 40-day escrow to help fulfill the buyer’s exchange requirement,” said Asher.
Built in 2023, the single-tenant 4,088-square-foot 7-Eleven sits on 1.25 acres at 171 East Redlands Blvd. in San Bernardino, Calif., at the signalized intersection of Redlands Blvd. and Hunts Lane.
Asher noted that the new-format, larger-square-footage 7-Eleven convenience store with Laredo Taco Co. and a gas station is one of the first new-format locations of this type to sell in southern California.
The property benefits from its proximity to Interstate 10 on/off ramps and near Interstate 215, creating easy access to the entire Inland Empire. Nearby tenants include Aldi, Home Depot, PetSmart, Burger King, Carl’s Jr., McDonald’s, Popeyes, Starbucks and Taco Bell. The property serves commuter traffic, local communities, and numerous distribution and logistics hubs in the area, including multiple Amazon fulfillment and distribution centers with a daytime population of nearly 107,000 people.
7-Eleven has more than 83,000 locations across 19 countries (13,000-plus in the U.S.) 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 any concerns about potential economic instability, buyers will seek essential businesses with a high credit rating like 7-Eleven, which can do well during challenging times and provide a reliable cash flow,” continued Asher. “For these reasons, and 100% bonus depreciation being reinstated through 2025, we expect that sales volume for single-tenant 7-Eleven net-leased retail investments will remain strong.”