SANTA MARIA & FRESNO, Calif. – RealEstateRama – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that Executive Vice President Jeremy McChesney arranged the sale of two 7-Eleven investment properties in California: a single-tenant 7-Eleven in Santa Maria; and a two-tenant 7-Eleven property in Fresno. The total consideration for these two transactions was $3,450,000. The transactions mark McChesney’s 18th 7-Eleven property that he has sold in the last 24 months.
The single-tenant, 2,413-square-foot 7-Eleven property is located at 1104 S. Blosser Road in Santa Maria (in northern Santa Barbara County) on 0.31 acres at the intersection of S. Blosser Road and Pershing Street. There are 22,000 people within a one-mile radius of the property, which was built in 1974. McChesney represented the seller, Equitas Investments of Hermosa Beach, California. The buyer, a private investor from Fowler, California, was represented by Luc Hawkshaw of Apex Properties.
According to McChesney, Hanley Investment Group had generated multiple qualified offers and selected the all-cash buyer within the first two weeks of marketing the asset for sale. The property sold for $1,650,000, representing a cap rate of 4.55%.
“7-Eleven has been operating at the Santa Maria location for 46 years and had recently extended the lease,” said McChesney. “The tenant has an absolute triple-net lease, which means the investment requires little to no landlord responsibilities. 7-Eleven’s rental increase in 2025 provides a hedge against inflation plus the tenant has options to extend.”
The two-tenant 7-Eleven property in Fresno that sold is located at 2414-2418 North Fruit Avenue and is also occupied by Sud’s Laundry Hub, a coin laundry operation. Both tenants have been at the center for over six years and 7-Eleven recently extended its lease, demonstrating its continued commitment to the location. The 4,640-square-foot property, which consists of a 3,120-square-foot 7-Eleven and 1,520-square-foot coin laundry, is situated on 0.48 acres at the signalized hard corner intersection of N. Fruit Avenue and W. Clinton Avenue with 24,000 vehicles per day at the intersection. There are 20,000 people within a one-mile radius of the property, which was built in 2001.
McChesney represented the seller, a private partnership based in Fresno. The buyer, a private investor from Los Angeles, was self-represented by Sandra Miller of Engel & Volkers. The two-tenant property sold for $1,800,000, representing a 5.65% cap rate.
According to McChesney, both the 7-Eleven and coin laundry operation, are deemed essential businesses by the government and have been allowed to operate without any pandemic-related restrictions. Furthermore, the dual-income stream of two internet-resistant tenants offers an investor a layer of protection.
“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 accentuates the attractiveness of this investment grade tenant,” McChesney noted. “Both 7-Eleven stores – the one in Santa Maria and Fresno – were strong performing locations with above-average sales in dense, infill locations.”
McChesney continues, “As investors look to the future and have concerns about economic instability and another pandemic lockdown, buyers will be looking to essential businesses with a high credit rating like 7-Eleven that can do well during these challenging times and provide a reliable cash flow. (S&P gives 7-Eleven an AA- Rating.) We expect that sales volume for single-tenant 7-Eleven net-leased investments will stay strong throughout the remainder of 2020 and into 2021.”
“Existing 7-Eleven properties with a well-established history and newly minted long-term leases will have the highest investor demand,” McChesney continues. “Properties with a shorter lease term, but strong real estate fundamentals, will also be in high demand.”
7?Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 71,100 stores in 17 countries, including approximately 11,800 in North America.
Hanley Investment Group currently has multiple 7-Eleven properties available for sale throughout the U.S. McChesney also has several off-market 7-Eleven single-tenant investments available for sale.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $7.6 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, sets 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.
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