Off-Market 7-Eleven Deal Gets Two Different Closing Dates

A single-tenant net-leased investment occupied by 7-Eleven and a fuel station were recently sold in an off-market transaction in Arlington. Although the purchase price was not disclosed, the sale achieved a cap rate of 4.7 percent.

The property is located at the signalized intersection of Collins Street and Blue Lake Boulevard at 4016 N. Collins St. 7-Eleven occupies a 3,010-square-foot building on 1.3 acres with a new absolute triple-net 15-year lease.

RealSource Group’s Austin Blodgett along with ParaSell Inc. represented the Houston-based private developer-seller. Jeremy McChesney with Hanley Investment Group represented the Southern California private investor.

“We helped secure an all-cash California-based 1031 exchange buyer who was looking for a brand-new construction 7-Eleven property for their upleg,” said Blodgett. “We negotiated that the buyer was non-contingent months before the store opened for business or started paying rent. However, due to the buyer’s 180-day exchange deadline ending before the scheduled close of escrow, which was tied to 7-Eleven’s opening and the payment of rent among other things, we structured two different closings.” The first closing occurred early to meet the buyer’s 1031 exchange deadline requirement and certain funds were held in escrow until the store opened, which triggered the second closing and final disbursement of funds, Blodgett says.

“This was a unique loophole to get around the 180-day exchange closing deadline in a situation where construction was delayed beyond the buyer’s exchange deadline and the buyer did not want to close escrow until the store opened,” says Blodgett. “We often see delays on new construction transactions, and we were able to work with the buyer to get them comfortable with this type of closing structure to make the deal work.”

In its second 7-Eleven transaction in two weeks, RealSource Group also arranged the pre-sale of a new single-tenant net-leased investment occupied by 7-Eleven, Laredo Taco Company quick-serve restaurant and a fuel station in an off-market transaction in Houston.