11 Michigan 7-Eleven Sites Sold
$15.8 million single-tenant ground lease portfolio sale arranged by Marcus & Millichap
DETROIT -- Marcus & Millichap Real Estate Investment Services said it 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.
TEVI Florida LLC purchased the leases from Ron Jona and Greg Buss of JBD Development Group LLC, according to a Crain's Detroit Business report.
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," said 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% occupied with absolute-net ground lease structures and 10% to 12.5% increases every five years with corresponding 10% to 12.5% increases in the option period renewals," said 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," Jonna said, "and each one in this portfolio has onsite fuel pumps."
Calabasas, Calif.-based Marcus & Millichap is the largest firm specializing in commercialreal-estate investment services in the nation, it said.