Ledo Capital Group sold a newly constructed, single-tenant 7‑Eleven to SB E Street LLC, a private investor in San Diego. Built in 2023, the 5,596‑s.f. convenience store sits on a 1.15‑acre lot and includes a Laredo Taco Company and 12 fuel pumps. The sale included a 15‑year, triple‑net absolute lease with 14 years remaining, including 10% rental increases every five years and four additional five‑year renewal options with similar escalations.
Property: 7-Eleven in Chino, Calif.
Price: $7.05M
Seller: Ledo Capital Group
Buyer: SB E Street LLC
The property, located at 15666 Hellman Avenue within Chino’s master-planned community The Preserve, was appealing to the buyer for several reasons:
- The fact that this is a brand-new, single-tenant asset reduces capital expenses and management responsibilities for the buyer.
- The triple‑net absolute lease ensures the tenant, 7-Eleven, is responsible for property expenses, including taxes, insurance and maintenance.
- A 15-year lease with built-in 10% rental increases every five years offers dependable, long-term cashflow.
- The high-performing retail concept of convenience store, quick-serve restaurant and 12 fuel dispensers attract significant customer traffic to an area already experiencing growth.
- The affluent demographic has an average household income exceeding $175K.
- Bonus tax depreciation advantages offer cost-saving potential.
The sale achieved a closing cap rate of 5.25%, the lowest recorded for a California 7-Eleven priced over $5M in the last 12 months. This record-setting rate reflects the asset’s quality and investment fundamentals.
However, the transaction was not without challenges.
“As the second brokerage firm to take on this listing, the primary challenge was to re-engage the market,” said Jeremy McChesney, EVP of Hanley Investment Group, who represented the seller. “We did this by securing an all‑cash, non‑exchange buyer through our broker network. This strategy allowed us to avoid the complexities associated with 1031 exchanges and typical financing hurdles, which helped streamline the transaction process and achieve a premium price point.”
Along with McChesney, Andrew Sprowl, senior associate of Hanley Investment Group represented the seller. Adam Bloom, an associate of Lee & Associates San Diego, represented the buyer.
