OFFERING MEMORANDUM - 7-ELEVEN - NNN Properties
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Subject Property
7-ELEVEN
EXCLUSIVE NET -LEASE OFFERING
OFFERING
MEMORANDUM 1203 N Pacific St, Mineola, TX 75773
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of market, economic, environmental or other conditions. Regardless the accuracy or completeness of the information provided. All
Net Leased property as follows: of tenant history and lease guarantees, Buyer is responsible for potential buyers must take appropriate measures to verify all of
conducting his/her own investigation of all matters affecting the the information set forth herein.
The information contained in this Marketing Brochure has been intrinsic value of the property and the value of any long-term
obtained from sources we believe to be reliable. However, lease, including the likelihood of locating a replacement tenant if NON-ENDORSEMENT NOTICE
Marcus & Millichap has not and will not verify any of this the current tenant should default or abandon the property, and
information, nor has Marcus & Millichap conducted any the lease terms that Buyer may be able to negotiate with a Marcus & Millichap Real Estate Investment Services, Inc.
investigation regarding these matters. Marcus & Millichap makes potential replacement tenant considering the location of the (“M&M”) is not affiliated with, sponsored by, or endorsed by any
no guarantee, warranty or representation whatsoever about the property, and Buyer’s legal ability to make alternate use of the commercial tenant or lessee identified in this marketing package.
accuracy or completeness of any information provided. property. The presence of any corporation’s logo or name is not intended
By accepting this Marketing Brochure you agree to release to indicate or imply affiliation with, or sponsorship or
As the Buyer of a net leased property, it is the Buyer’s Marcus & Millichap Real Estate Investment Services and hold it endorsement by, said corporation of M&M, its affiliates or
responsibility to independently confirm the accuracy and harmless from any kind of claim, cost, expense, or liability arising subsidiaries, or any agent, product, service, or commercial listing
completeness of all material information before completing any out of your investigation and/or purchase of this net leased of M&M, and is solely included for the purpose of providing
purchase. This Marketing Brochure is not a substitute for your property. tenant lessee information about this listing to prospective
thorough due diligence investigation of this investment customers.
opportunity. Marcus & Millichap expressly denies any obligation CONFIDENTIALITY AND DISCLAIMER
to conduct a due diligence examination of this Property for Buyer. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
The information contained in the following Marketing Brochure is CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
Any projections, opinions, assumptions or estimates used in this proprietary and strictly confidential. It is intended to be reviewed DETAILS.
Marketing Brochure are for example only and do not represent only by the party receiving it from Marcus & Millichap and should
the current or future performance of this property. The value of a not be made available to any other person or entity without the SPECIAL COVID-19 NOTICE
net leased property to you depends on factors that should be written consent of Marcus & Millichap. This Marketing Brochure
evaluated by you and your tax, financial and legal advisors. has been prepared to provide summary, unverified information All potential buyers are strongly advised to take advantage of
to prospective purchasers, and to establish only a preliminary their opportunities and obligations to conduct thorough due
Buyer and Buyer’s tax, financial, legal, and construction advisors level of interest in the subject property. The information diligence and seek expert opinions as they may deem necessary,
should conduct a careful, independent investigation of any net contained herein is not a substitute for a thorough due diligence especially given the unpredictable changes resulting from the
leased property to determine to your satisfaction with the investigation. Marcus & Millichap has not made any investigation, continuing COVID-19 pandemic. Marcus & Millichap has not been
suitability of the property for your needs. and makes no warranty or representation, with respect to the retained to perform, and cannot conduct, due diligence on behalf
income or expenses for the subject property, the future projected of any prospective purchaser. Marcus & Millichap’s principal
Like all real estate investments, this investment carries significant financial performance of the property, the size and square expertise is in marketing investment properties and acting as
risks. Buyer and Buyer’s legal and financial advisors must request footage of the property and improvements, the presence or intermediaries between buyers and sellers. Marcus & Millichap
and carefully review all legal and financial documents related to absence of contaminating substances, PCB’s or asbestos, the and its investment professionals cannot and will not act as
the property and tenant. While the tenant’s past performance at compliance with State and Federal regulations, the physical lawyers, accountants, contractors, or engineers. All potential
this or other locations is an important consideration, it is not a condition of the improvements thereon, or the financial buyers are admonished and advised to engage other
guarantee of future success. Similarly, the lease rate for some condition or business prospects of any tenant, or any tenant’s professionals on legal issues, tax, regulatory, financial, and
properties, including newly-constructed facilities or newly- plans or intentions to continue its occupancy of the subject accounting matters, and for questions involving the property’s
acquired locations, may be set based on a tenant’s projected property. The information contained in this Marketing Brochure physical condition or financial outlook. Projections and pro forma
sales with little or no record of actual performance, or has been obtained from sources we believe to be reliable; financial statements are not guarantees and, given the potential
comparable rents for the area. Returns are not guaranteed; the however, Marcus & Millichap has not verified, and will not verify, volatility created by COVID-19, all potential buyers should be
tenant and any guarantors may fail to pay the lease rent or any of the information contained herein, nor has Marcus & comfortable with and rely solely on their own projections,
property taxes, or may fail to comply with other material terms of Millichap conducted any investigation regarding these matters analyses, and decision-making.)
the lease; cash flow may be interrupted in part or in whole due to and makes no warranty or representation whatsoever regarding
1203 N Pacific St, Mineola, TX 75773
Table of Contents
Investment Highlights 4
Financial Analysis 5
Bonus Depreciation 6
Tenant Overview 7
Surrounding Area 8
Location Overview 9
Property Photos 10-12
Surrounding Area Photos 13
Local & Regional Map 14-15
Demographics / Market Overview 16-17
Representative Photo
Investment Highlights
PRICE: $3,673,469 | CAP: 4.90% | RENT: $180,000
About the Investment
✓ New 15-Year Absolute Triple-Net (NNN) Lease
✓ Three (3), Five (5)-Year Tenant Renewal Options, Bringing the Potential Lease
Term to 30 Years
✓ 7.5% Rental Increases Every Five (5) Years
✓ Investment Grade Credit: 7-Eleven Corporate (S&P: AA-)
✓ Fee Simple – Eligible for Bonus Depreciation
About the Location
✓ Located in an Urban Infill| Walmart, Brookshire’s, Dollar General, CVS Pharmacy,
Sonic Drive-In, Taco Bell, Subway, Pizza Hut, Whataburger, and Many More
✓ Strong Real Estate Fundamentals | Within Thirty Miles of Downtown Tyler
✓ Features High Visibility and Ease of Access| Positioned on a Hard Signalized
Corner
✓ Strong Traffic Counts | N Pacific Street & Greenville Avenue| Average 11,900
and 6,900 Vehicles Respectively Per Day
About the Tenant / Brand
✓ 7E TX, LLC – One of Seven 7-Eleven Portfolio Partners in the U.S.
✓ 7-Eleven is the Largest Convenience Store Chain in the World | 60,000 Stores in
18 Countries
✓ 10,700 Stores in North America
✓ Committed to Meeting the Needs of All Guests by Providing a Broad Selection of
Fresh, High-Quality Products and Services at Everyday Fair Prices
✓ Essential Business – Rent Paid in Full at Every Location Throughout Covid-19
Pandemic
Representative Photo
Representative Photo
7-Eleven – Mineola, TX 4
Financial Analysis
PRICE: $3,673,469 | CAP: 4.90% | RENT: $180,000
Property Description Rent Schedule
Rent Escalation
Property 7-Eleven Lease Year(s) Annual Rent Monthly Rent
(%)
Property Address 1203 N Pacific Street 06/15/2020 – 06/14/2021 $180,000 $15,000 -
06/15/2021 – 06/15/2022 $180,000 $15,000 -
City, State, ZIP Mineola, TX 75773 06/15/2022 – 06/14/2023 $180,000 $15,000 -
Estimated Building Size 2,400 06/15/2023 – 06/14/2024 $180,000 $15,000 -
06/15/2024 – 06/14/2025 $180,000 $15,000 -
Lot Size +/- 0.60 Acres
06/15/2025 – 06/14/2026 $193,500 $16,125 7.50%
Type of Ownership Fee Simple 06/15/2026 – 06/14/2027 $193,500 $16,125 -
06/15/2027 – 06/14/2028 $193,500 $16,125 -
The Offering 06/15/2028 – 06/14/2029 $193,500 $16,125 -
Purchase Price $3,673,469 06/15/2029 – 06/14/2030 $193,500 $16,125 -
06/15/2030 – 06/14/2031 $208,013 $17,334 7.50%
CAP Rate 4.90%
06/15/2031 – 06/14/2032 $208,013 $17,334 -
Annual Rent $180,000 06/15/2032 – 06/14/2033 $208,013 $17,334 -
06/15/2033 – 06/14/2034 $208,013 $17,334 -
Lease Summary 06/15/2034 – 06/14/2035 $208,013 $17,334 -
Property Type Net-Leased Convenience Store / Gas Station Option Period 1 $223,614 $18,634 7.50%
Option Period 2 $240,385 $20,032 7.50%
Tenant 7E TX, LLC
Option Period 3 $258,414 $21,534 7.50%
Guarantor 7-Eleven Corporate INVESTMENT SUMMARY
Original Lease Term 15 Years Marcus & Millichap is pleased to present the exclusive listing for a 7-Eleven
located at 1203 N Pacific St, Mineola, TX 75773. The property consists of
Lease Commencement June 15, 2020 roughly 2,400 rentable square feet of building space on an estimated 0.60-acre
Lease Expiration July 1, 2035 parcel of land.
Lease Term Remaining 14+ Years
7-Eleven is subject to a brand new 15-year Absolute Triple-Net (NNN). The
Lease Type Triple-Net (NNN) initial rent is $180,000 with 7.5% increases every 5 years. There are three (3),
five (5)-year tenant renewal options, extending the total possible lease term to
Rental Increases 7.5% Every Five (5)-Years
30 years.
Options to Renew Three (3), Five (5) Year Option Periods
7-Eleven – Mineola, TX 5
Bonus Depreciation
**The below content is meant to provide general information.
Please contact your accountant/tax advisor for more information.
Depreciation Accelerated Depreciation Bonus Depreciation
A reduction in the value of an asset Modified Accelerated Cost Recovery Eligible for properties with a useful life of
under 20 years. New Law: 100% Of The
with the passage of time, due in System (Service Stations, Car Washes,
Property in Year One.
particular to wear and tear. & Oil Changing Facilities) 1 Year Schedule
39 Year Schedule 15 Year Schedule Phase Out Beginning on January 1, 2023
$3,673,469 7-ELEVEN WITH BONUS DEPRECIATION- 4.90% CAP RATE ACQUISITION
FOR EXAMPLE PURPOSES ONLY
Purchase Price: $3,673,469
Loan Amount: $2,387,755
Equity: $1,285,714
Compare To:
LTV: 65.00%
Interest Rate (10 Year Fixed): 3.50%
Amortization (Years): 30
39 Year Schedule
Cap Rate: 4.90% *Total Depreciation Year 1 (After 20% Land Allocation): $75,353
Rent: $180,000 Total Tax Deductions Year 1 (Depreciation + Interest): $165,024
Debt Service (Annual): $128,665
15 Year Schedule
Annual NOI After Debt Service: $51,334
Principal Reduction Year 1: $49,715 *Total Depreciation Year 1 (After 20% Land Allocation): $195,918
Total Tax Deductions Year 1 (Depreciation + Interest): $285,589
Total Return Year 1: $101,050
Total Interest Deduction Year 1: $89,671
*Total Depreciation Year 1 (After 20% Land Allocation): $2,938,775
Total Tax Deductions Year 1 (Depreciation + Interest): $3,028,446
7-Eleven
7-Eleven– –Richmond,
Mineola, VA
Bokeelia, TX
FL 6
Tenant Overview
Company Profile
7-Eleven is the world’s largest convenience
store chain operating, franchising and
licensing more than 60,000 stores in 18
countries, of which nearly 10,700 are in North
America. 7-Eleven also is one of the nation's
largest independent gasoline retailers. Its
company’s name was changed from The
Southland Corporation to 7-Eleven, Inc. after
7-Eleven focuses on meeting the needs of convenience-oriented guests by approval by shareholders on April 28, 1999.
providing a broad selection of fresh, high-quality products and services at Founded in 1927 in Dallas, Texas, 7-Eleven
everyday fair prices, speedy transactions and a clean, friendly shopping pioneered the convenience store concept
environment. Each store's selection of about 2,500 different products and during its first years of operation as an ice
services is tailored to meet the needs and preferences of local guests. Stores company when its retail outlets began selling
typically vary in size from 2,400 to 3,000 square feet and are most often located milk, bread and eggs as a convenience to
on corners for great visibility and easy access. Well known for the Big Gulp® guests. The name 7-Eleven originated in 1946
fountain soft drink, Big Bite® grill items, the Slurpee® beverage and its fresh- when the stores were open from 7 a.m. to 11
brewed coffee, 7-Eleven’s food service offerings bring guests a proprietary line p.m. Today, offering busy shoppers 24-hour
of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast convenience, seven days a week is the
sandwiches and a wide assortment fruits, salads and baked goods. cornerstone of 7-Eleven's business.
7-Eleven – Mineola, TX 7
Surrounding Area
Property Address: 1203 N Pacific St, Mineola, TX 75773
7-Eleven – Mineola, TX 8
Location Overview
Property Address: 1203 N Pacific St, Mineola, TX 75773
This 7-Eleven investment property is located at 1203 North Pacific Street on a
hard corner of a signalized intersection. 1203 North Pacific Street boasts
average daily traffic counts exceeding 11,900 vehicles. State Highway 31
intersects Greenville Avenue which brings an average additional 6,900 vehicles
into the immediate area per day. There are more than 21,000 individuals within ADTC: 11,900
a ten-mile radius of the property.
The subject property benefits from being well-positioned in an urban infill
consisting of national and local tenants. Major national tenants include:
Walmart, Brookshire’s, Dollar General, CVS Pharmacy, Sonic Drive-In, Taco Bell,
Subway, Pizza Hut, Whataburger, and many more. Additionally, there are
several hospitality accommodations that are within a three mile radius of the
property. These include: Munzesheimer Manor Bed and Breakfast, Lakeland
Lodge, Brooks House Suites, English House Bed and Breakfast, Mineola Civic
Center, and many more. The subject property benefits from being located
approximately 25 miles from Christus Mother Frances Hospital, a 402-bed
hospital.
ADTC: 6,900
Tyler is the county seat of Smith County, located in east-central Texas, United
States. Tyler has grown to be the largest community in East Texas. Boasting an
MSA population of over 225,000 people, Tyler offers the cultural diversity,
quality education, health care, and recreational opportunities of a large city wit
the hometown friendliness and quality of life of a small community. Tyler is also
known as “The Rose Capital of the World” for having the largest rose garden in
the United State and for hosting several community events like the Texas Rose
Festival. The city is surrounded by 25 prime sporting lakes offering wonderful
opportunities for fishing and boating. Golf enthusiasts will find a variety of golf
clubs in the immediate area as well. The most notable park in Tyler is the Tyler
State Park, which offers families 985 acres of woods around a beautiful spring-
fed lake. The largest industries that drive Tyler’s economy are: Health Care &
Social Assistance, Retail Trade, and Accommodation & Food Services.
7-Eleven – Mineola, TX 9
Property Photo
Property Address: 1203 N Pacific St, Mineola, TX 75773
7-Eleven - Mineola, TX 10Property Photo
Property Address: 1203 N Pacific St, Mineola, TX 75773
7-Eleven - Mineola, TX 11Property Photo
Property Address: 1203 N Pacific St, Mineola, TX 75773
7-Eleven - Mineola, TX 12Surrounding Area Photos
Property Address: 1203 N Pacific St, Mineola, TX 75773
7-Eleven - Mineola, TX 13Local Map
Property Address: 1203 N Pacific St, Mineola, TX 75773
East Texas Regional Airport (GGG)
7-Eleven – Mineola, TX 14Regional Map
Property Address: 1203 N Pacific St, Mineola, TX 75773
TEXAS
7-Eleven – Mineola, TX 15Demographics
Property Address: 1203 N Pacific St, Mineola, TX 75773
3 Miles 5 Miles 10 Miles
10 Miles POPULATION
2025 Projection 7,414 9,821 22,174
2020 Estimate 7,387 9,747 21,871
2010 Census 7,072 9,292 20,490
2000 Census 6,639 8,407 18,704
5 Miles INCOME
Average $66,087 $67,581 $68,532
Median $51,454 $52,595 $52,448
Per Capita $25,735 $26,471 $26,872
3 Miles
HOUSEHOLDS
2025 Projection 2,836 3,801 8,627
2020 Estimate 2,835 3,777 8,492
2010 Census 2,770 3,656 8,064
2000 Census 2,593 3,305 7,155
HOUSING
2020 $122,097 $131,042 $134,589
EMPLOYMENT
2020 Daytime Population 6,951 8,220 16,835
2020 Unemployment 3.87% 3.70% 4.39%
2020 Median Time Traveled 31 mins 31 mins 31 mins
RACE & ETHNICITY
White 79.00% 81.37% 85.83%
Native American 0.02% 0.03% 0.10%
African American 9.16% 7.35% 5.23%
Asian/Pacific Islander 0.80% 0.74% 0.70%
7-Eleven – Mineola, TX 16Market Overview
City: Mineola| County: Wood| State: Texas
Tyler, Texas Tyler is the county seat of Smith County, located in east-central Texas,
United States. The city of Tyler has long been Smith County’s major
economic, educational, financial, medical, and cultural hub. Tyler has the
nickname “Rose Capital of the World”. It gained this name due to the large
quantity of rose bushes processed through the area, along with hosting
America’s largest rose garden. As a regional educational and technological
center, Tyler is the host for more than 20,000 higher education students, a
College of Engineering, and a University Health Science Center, two
regional, billion-dollar hospital systems, and a variety of technology
startups. Tyler State Park is a few miles away where visitors can camp,
canoe, and paddle boats on the lake. Activities include picnicking, camping,
boating, fishing, birding, and hiking amongst others. Tyler is a nexus of
several major highways. Interstate 20 runs along the north edge of the city
going east and west, U.S Highway 69 runs north-south through the center
of town and State Highway 64 runs east-west through the city. Tyler also
has access to U.S. Highway 271, State Highway 31, State Highway 155, and
State Highway 110. The largest industries in Tyler are Health Care & Social
Assistance, Retail Trade, and Accommodation & Food Services. The highest
paying industries include: Mining, Quarrying & Oil & Gas Extraction,
Agriculture, Forestry, Fishing & Hunting, and Scientific & Technical Services.
Major Employers
Employer Estimated # of Employees
Walmart 300
Quitman Independent School District 275
Mineola Independent School District 188
ETMC Regional Health System 160
Wood County Special Education 141
Sky Ranches Incorporated 100
Mineola Healthcare Residence 99
Heritage Healthcare Residence 94
Wood County Electric Coop Incorporated 91
Wood Memorial Nursing Home 90
Trinidad Benham Holding Company 80
7-Eleven – Mineola, TX 17Russell Wachtler R.J. Stein Glen Kunofsky
Russell.Wachtler@marcusmillichap.com Robert.Stein@marcusmillichap.com Glen.Kunofsky@marcusmillichap.com
212.430.5132 | NY: 10401294048 212.430.5223 | NY: 10401341647 212.430.5115 | NY: 10301203289
E XC LU S I V E N E T - L EA S E O F F E R IN G
Timothy Speck
Marcus & Millichap
5001 Spring Valley Rd Suite 100W
Dallas, TX 75244
Tel: (972)-755-5200 1203 N Pacific St, Mineola, TX 75773
Fax: (972-755-5210
License: 432723You can also read
