7-Eleven (Corporate Guarantee) - 134 N Center Ave, Gaylord, MI 49735 - OFFERING MEMORANDUM
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7-Eleven (Corporate Guarantee)
134 N Center Ave, Gaylord, MI 49735
OFFERING MEMORANDUM
*Actual Photo
7-Eleven – Gaylord, MI
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01
Property Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
PRESENTED BY
Offering Summary
Michael Matusik MARKET OVERVIEW 03
Vice President Market Overview
Direct | 714.874.4004 Demographics
Fax | 717.797.0004
mmatusik@primenetlease.com
License: CA 01888322
www.primenetlease.com
Paul R Matusik
President
Direct | 714.875.2400
Fax | 717.797.0004
pmatusik@primenetlease.com
License: CA 01351021
www.primenetlease.com
In Association with Steve Millman, Northstar Commercial, Michigan License 6505360301
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
INVESTMENT
OVERVIEW
3
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
PROPERTY OVERVIEW
PROPERTY OVERVIEW
PRICE: $840,000 CAP RATE: 6.27%
About The Investment
ANNUALIZED OPERATING DATA LEASE ABSTRACT
The subject property affords investors the rare opportunity to
acquire a corporately-backed 7-Eleven convenience Tenant: 7-Eleven Corporate
store located in Gaylord, Michigan. Built originally in 1979 and Rent Increases Annual Rent
remodeled in 2006, the 2,640 square foot building has Lease Commencement: April 1, 2006
successfully operated as a 7-Eleven for thirty-eight years. This
store is the only 7-Eleven in Gaylord, Michigan. Some retailer’s Current $ 52,665.00 Lease Expiration: March 31,2021
located in the near vicinity include Lowe’s, Walmart, Home
Depot, Advance Auto Parts and Rite Aid. There are also quick Renewal Options: 4, 5-Year Options
service establishment such as Burger King, McDonalds, KFC, April 1, 2021* $ 56,351.40
Wendy’s, Starbuck’s and Subway within a walking distance. Rent Increases: Every 5 Years
Otsego County Municipal Airport is located about 20 Miiles
away. April 1, 2026* $ 60,296.04 Type of Ownership: Fee Simple
The lease is net in nature and requires little landlord
No. of Tenant Locations: 10,000+
responsibilities. The landlord is responsible for April 1, 2031* $ 64,517.04
Roof/Structure/HVAC/Parking Lot. There are currently 1.8 years
remaining on an initial lease term that is complimented by (4),
5-year option periods that extend through 2041. April 1, 2036* $ 69,033.00 PROPERTY INFORMATION
The lease is backed by 7-Eleven Corporate with approximately
Address 134 N Center Ave
10,700 stores in North America and over 60,000 globally.
*Denotes Option Period Gaylord , MI 49735
PROPERTY HIGHLIGHTS Offering Price $840,000
NET OPERATING INCOME*** $52,665.00
40 Year Operating History! Price / SF $318.18
7-Eleven Corporate Guarantee TOTAL RETURN*** $52,665.00
Cap Rate 6.27%
20 Minutes to Ostego County Airport Net Annual Operating Inc. $52,665.00
Rent Increases in Option Periods Year Built /Remodeled 1979 / 2006
7-Eleven Store Only (No Gas Pumps) Rentable Square Feet 2,640
Popular Winter/Summer Resort Area Land Area 0.42 Acres
NNN Lease – Minimal Landlord Responsibilities
4
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
PROPERTY PHOTOS
PROPERTY PHOTOS
5
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
PROPERTY OVERVIEW
TENANT
7-Eleven is the world’s largest convenience store chain operating, franchising and licensing stores in 18 countries. Approximately 10,700 of the 60,000
7-Eleven stores worldwide are in North America.
What started out as an ice house in Dallas, Texas, back in 1927 has grown and evolved into the world’s largest operator, franchisor and licensor of
convenience stores.
The company operates, franchises and licenses approximately 10,700 convenience stores in North America. Of the close to 8,500 stores the company
operates and franchises in the United States, more than 6,700 are franchised.
Outside of the U.S. and Canada, there are more than 60,000 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China,
Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, Denmark and United Arab Emirates. 7Eleven has announced plans
to open stores in Vietnam.
Top Honors
- 7-Eleven has been honored by numerous companies and organizations throughout its 88 years in business. Recent 7-Eleven accolades include:
- No. 35 on Stores Magazine’s Top 100 Retailers list, the top c-store on the list
- No. 5 on FranchiseRanking.com for Best Convenience Store Franchises Company USA
- No. 11 on FranchiseRanking.com for Best Overall Franchises Company USA
- No. 3 on Entrepreneur Magazine’s Top Global Franchise Rankings list
- 7-Eleven won three awards – two golds and a silver – in the 2016 Brand Packaging Awards
- No. 7 on Entrepreneur magazine’s Franchise 500 list
- No. 1 on Entrepreneur magazine’s Franchise 500’s Top 10 Most Popular Retail Companies
- No. 3 on Forbes magazine’s Top 20 Franchises to Start
- Among GI Jobs magazine’s Top 100 Military Friendly Employers
- No. 5 on USA Today’s Top 10 Best Airport Newsstand/Travel Essential
Website: www.7-eleven.com
Founded: 1927
Number of U.S. Locations: 10,000 ±
Number of U.S. Employees: 45,000 ±
Headquarters: Irving, Texas
Owners: Seven & I Holdings Co.
The Wendy’s Company (18.5%)
6
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
REGIONAL MAP
Subject
7
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
LOCAL MAP
Subject
8
7-Eleven – Gaylord, MI
AERIAL MAP
9
7-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
FINANCIAL
ANALYSIS
107-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
FINANCIAL ANALYSIS
OFFERING SUMMARY
THE OFFERING ANNUALIZED OPERATING INFORMATION
Property 7-Eleven INCOME
Property Address 134 N Center Ave Net Operating Income $52,665.00
Gaylord, MI 49736
Price $840,000 RENT SCHEDULE
Capitalization Rate 6.27% YEAR ANNUAL RENT MONTHLY RENT RENT/SF
Price/SF $318,18 Current $52,665 $4,388.75 $1.66
PROPERTY DESCRIPTION
Year Built / Renovated 1979 / 2006
Gross Leasable Area 2,640
Zoning
Type of Ownership Fee Simple
LEASE SUMMARY
Property Subtype Net Leased - Convenience
Tenant 7-Eleven
Rent Increases Yes
Guarantor Corporate Guarantee
Lease Type NNN
Lease Commencement 04/01/2006
Lease Expiration 03/31/2021
Lease Term 15
Term Remaining on Lease
1.8
(Years)
Renewal Options 4, 5-Year Options
Landlord Responsibility Roof & HVAC
Tenant Responsibility Structure
Right of First Refusal/Offer Yes
117-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
MARKET
OVERVIEW
127-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
MARKET OVERVIEW
City of Gaylord / Ostego County
Gaylord is located in the Heart of Northern Michigan on the 45th parallel with easy access directly
off I-75. Known for its year round diverse "All Outdoor" adventures found in the breathtaking
beauty of our water (with over 90 inland lakes and 5 pristine rivers) and land (with miles of diverse
parks, forests and trails). Swiss themed architecture and ambiance is bursting with excitement,
growth and an eclectic Downtown vibe bursting with new shops, brews, and tasty foods.
First named Okkaddo when it was set off in 1840, this county was renamed Otsego in 1843 after a
New York county and lake of that name. It is said to mean "clear water." Settlement did not begin
until the late 1860's when lumbering was started.
Otsego Lake, the first village, was founded in 1872 and became county seat in 1875 when the
county was organized. Settled in the year 1874 by the Jackson, Lansing & Saginaw Railroad, the
new community was named for Augustine Smith Gaylord, an attorney for the railroad and named
county seat in 1877. Farming and the tourist industry are now the chief businesses.
The first settlers moved into the county in 1868 for the purpose of lumbering. Pine and hardwoods
lured people into the area. Farming also has been important to Otsego County, potatoes being
one of the leading crops.
You'll take pleasure in a drive around Otsego County to visit some of our historic sights. Pack a
picnic to enjoy at Irontone Spring located just a few miles north of Gaylord on US 27 North. The
park is named for the iron in the spring water which gives the rocks a rust red color.
Top 10 Employers
Ostego Memorial Hospital 6. Johnson Oil & Propane Company
Treetop Resorts 7. Ostego Club
Gaylord School District 8. Ostego County
Meijer 9. Tendercare Gaylord
Sunfrog 10. Lowe’s Home Improvemnt
137-Eleven
Kum &–Go
Gaylord, MI IA
– Grinnell,
DEMOGRAPHICS
Otsego County is one of Michigan's 83 counties and is not part of a metropolitan
area. The County's population continues to grow at a healthy rate! Our County grew
3.7%, resulting in a population of 24,164 people (33% urban and 67% rural). The
Gaylord area grew by 0.53% with a population of 18,410. Otsego Lake Township had
the largest increase at 12.4%, which was the largest growth in population in a single
sector. Steady growth is projected for the future.
The median household income was $45,531 and the median value of owner-
occupied housing units was $122,300 with an 81.8% homeownership rate. The cost
of living index was 82.2%
In 2011, 5% of the total population was self-employed and there were 797 private
nonfarm establishments and 3,107 firms with 20.5% of the firms being owned by
women.
In 2007, manufacturer's shipments per $1K were 158,006, merchant wholesaler's
sales per $1K were 290,713, retail sales per $1K were 499,775 and retail sales per
capita were $20,716. Accommodation and food service sales during 2007, per $1K
were 58,883.
Population
The estimated population for Otsego County in 2012 is 24,037, (34% urban and 66%
rural). This reflects a slight decline of 127 people from the 2010 census that resulted
in a population of 24,164 people. The Gaylord area grew by 0.53% with a population
of 18,410. Otsego Lake Township had the largest increase at 12.4%, which was the
largest growth in population in a single sector.
There were 9,807 households of which 6,661 were family households with 56.1 % of
them being married couples living together, with the median age for this area being
42. Couples with children under the age of 18 living with them constituted 26.3% of
the households. Male householders consisted of 4.7% of the population, of which
2.6% had children under the age of 18 living with them, and female householders
were 7.1% of the population with 4.1% of them having children under the age of 18,
according to the 2012 US Census. As of 2012, 96.7% of the population was white,
0.1% black, 0.3% American Indian and Alaska Native, and 0.5% Asian.
14PRESENTED BY Michael Matusik Vice President Direct | 714.874.4004 Fax | 717.797.0004 mmatusik@primenetlease.com License: CA 01888322 www.primenetlease.com Paul R Matusik President Direct | 714.875.2400 Fax | 717.797.0004 pmatusik@primenetlease.com License: CA 01351021 www.primenetlease.com In Association with Steve Millman, Northstar Commercial, Michigan License 6505360301
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