DETROIT – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of an 11-property single-tenant ground lease portfolio. The ground leases are all held by and guaranteed by 7-Eleven Inc. The sales price is $15.8 million.
Simon Jonna, a vice president investments, and Raymond Jonna, an associate, both in Marcus & Millichap’s Detroit office, represented the seller, a Midwest-based property developer. Ronnie Issenberg, a vice president investments, and Gabriel Britti, an associate vice president investments, both in the firm’s Miami office, represented the buyer.
“We sourced a wide range of well-qualified investors for this rare single-tenant portfolio listing and created a competitive environment to produce the sale,” says Simon Jonna. “Single-tenant net-leased assets are attractive investments for many reasons and this particular portfolio was especially sought after because 7-Eleven has one of the higher lease renewal rates in the industry.”
“The portfolio is 100 percent occupied with absolute-net ground lease structures and 10- 12.5 percent increases every five years with corresponding 10-12.5 percent increases in the option period renewals,” adds Issenberg.
The properties are all located in Michigan at high-traffic, high-exposure primary intersections in Chesterfield, Clinton Township, Howell, Lenox Township, Macomb, Romulus, Shelby Township and Warren.
“The sites are meticulously screened and selected by 7-Eleven,” puts in Raymond Jonna, “and each one in this portfolio has on-site fuel pumps.”