Hampton Roads 7-Eleven Portfolio Trades for $24M
- Mar 15, 2017
Hampton, Va.—Marcus & Millichap recently announced that it has closed the sale of a nine-property portfolio located throughout the Tidewater region of Virginia for $23.6 million. The properties are leased to 7-Eleven Inc. and three of them are situated in Hampton, two in Williamsburg, Va. and the others are located in Poquoson, Va., Newport, Va., News, Va., Gloucester, Va. and Surry, Va.
A privately held local owner sold the assets to an undisclosed REIT. Marcus & Millichap’s Senior Managing Director Mark Taylor, First Vice President of Investments Derrick Dougherty and Associate David Becattini represented the seller and procured the buyer. The company’s broker of record in Virginia was Bryn Merrey, senior vice president & division manager at the firm’s Washington, D.C. office.
The properties represent some of the oldest and strongest 7-Eleven stores in the market, being a vital and central part of each community that they serve. The nine leases are all absolute net leases with all taxes, insurance, utilities and operating costs falling on the tenant. Furthermore, the leases feature 10 percent rent increases every five years.
“The portfolio was at one time part of a large convenience store chain and according to the chain’s founder, these stores were the best,” said Taylor, in a prepared statement. “We presented the opportunity to buyers from throughout the investment spectrum locally, regionally and nationally, and then transformed the significant interest that we generated into the successful closing of all nine assets.”
“The stores and gas stations contained in this portfolio have operated successfully for decades in strong and well-established markets,” added Dougherty.
Image courtesy of Marcus & Millichap