Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced Monday that the firm has completed the sale of an absolute triple-net ground lease for a new construction, single-tenant Circle K convenience store and gas station located at 24010 Copper Hill Drive in Valencia. The sale price was $4,025,000, which represented a cap rate of 4.10%, the lowest cap rate nationwide for a new construction, single-tenant Circle K priced over $1 million.
Hanley Investment Group Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller and developer, Fountainhead Development of Newport Beach. The buyer, a private trust from Beverly Hills was represented by Edan Amar and Idan Cohen of Keller Williams Realty in West Hollywood.
Built in 2018, the new 3,819-square-foot convenience store building and fuel station sits on 1.31 acres and is located at the hard corner, signalized intersection of Copper Hill Drive and Rio Norte Drive with 36,000 cars per day.
According to Asher, “Circle K featured a new, long-term corporate guaranteed lease that was very attractive to single-tenant net-leased investors in today’s market. The net-leased buyer pool continues to see the most demand and activity out of any retail category to start 2020. Additionally, the site’s strong fundamentals combined with the new, long-term, absolute triple-net ground lease, offered minimal landlord responsibilities and a secure and stable investment for the buyer who fulfilled a 1031 exchange with the purchase.”
Asher also notes, “We procured an all-cash buyer in the first week of marketing and negotiated a seven-day contingency period and a 21-day escrow. Quality single-tenant, net-leased investments with the characteristics of the Circle K don’t come available often in Los Angeles County. Once the buyer identified the opportunity, the buyer moved on it quickly.”
Circle K was ranked #2 in the CSP Magazine’s “Top 40 C-Store Chains” in 2018 and 2019. Circle K’s parent company, Alimentation Couche-Tard Inc., is the largest independent convenience store operator in terms of the number of company-operated stores in North America.
“Convenience stores feed immediate needs and can still do well in an economic downturn,” said Lefko. Hanley Investment Group has arranged the sale of 14 convenience stores throughout the U.S. in the last 14 months and has several similar properties available for sale.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.