7-ELEVEN/STRIPES CORPORATE GROUND LEASE - 2214 SE Military Drive, San Antonio, TX 78223
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7-ELEVEN/STRIPES CORPORATE GROUND LEASE 2214 SE Military Drive, San Antonio, TX 78223 Exclusively Offered By: ED COLSON, JR. CCIM 619.546.0121 Ed@InvestCoreCommercial.com InvestCoreCommercial.com CA Lic #01382996 | TX Lic #635820
OFFERING STATEMENT / DISCLAIMER
InvestCore Commercial presents this Offering which to the recipient. This Offering does not constitute a limited herein are called the “Contents”), are of a
has been prepared by InvestCore Commercial for use representation that there has been no change in the confidential nature.
by a limited number of parties and does not purport business or affairs of the Property or the Owner since
to provide a necessarily complete summary of the the date of preparation of the package. Analysis By accepting the package, you agree (i) to hold and
Property or any of the documents related thereto, nor and verification of the information contained in this treat it in the strictest confidence, (ii) not to photocopy
does it purport to be all-inclusive or to contain all of package is solely the responsibility of the prospective or duplicate it, (iii) not to disclose the package or
the information which prospective investors may need purchaser. Additional information and an opportunity any of the contents to any other entity (except to
or desire. All projections have been developed by to inspect the Property will be made available upon outside advisors retained by you, if necessary, for
InvestCore Commercial, the Owner, and designated written request to interested and qualified prospective your determination of whether or not to make a
sources and are based upon assumptions relating investors. InvestCoreCommercial.com proposal and from whom you have obtained an
to the general economy, competition, and other agreement of confidentiality) without the prior written
factors beyond the control of the Owner and, Owner and InvestCore Commercial each expressly authorization of Owner or InvestCore Commercial,
therefore, are subject to variation. No representation reserve the right, at their sole discretion, to reject any (iv) not use the package or any of the contents in
is made by InvestCore Commercial or Owner as to and all expressions of interest or offers regarding any fashion or manner detrimental to the interest of
the accuracy or completeness of the information the Property and/or terminate discussions with any Owner or InvestCore Commercial, and (v) to return it
contained herein, and nothing contained herein is, or entity at any time with or without notice. Owner to InvestCore Commercial immediately upon request
shall be relied on as, a promise or representation as shall have no legal commitment or obligation to any of InvestCore Commercial or Owner.
to the future performance of the Property. Although entity reviewing this Offering or making an offer to
the information contained herein is believed to be purchase the Property unless and until a written If you have no further interest in the Property,
correct, Owner and its employees disclaim any agreement for the purchase of the Property has been please return this Investment Offering forthwith.
responsibility for inaccuracies and expect prospective fully executed, delivered, and approved by Owner
purchasers to exercise independent due diligence in and its legal counsel, and any conditions to Owner’s
verifying all such information. Further, InvestCore obligations thereunder have been satisfied or waived.
Commercial, Owner, and its employees disclaim any InvestCore Commercial is not authorized to make any
and all liability for representations and warranties, representations or agreements on behalf of Owner.
InvestCore Commercial, Inc.
expressed and implied, contained in, or for omission This Offering and the contents, except such information
315 S. Coast Highway 101, Suite U240
from, this Investment Offering or any other written or which is a matter of public record or is provided in
Encinitas, CA 92024
oral communication transmitted or made available sources available to the public (such contents as so
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
TABLE OF CONTENTS
Investment Summary 4
Executive Summary
Investment Highlights
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Property Description 8
Street Map
Aerials
Survey
Site Plan
Area Overview 15
Tenant Profile
About San Antonio
Demographics
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
INVESTMENT
SUMMARY
Executive Summary
Investment Highlights
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2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
INVESTMENT SUMMARY
EXECUTIVE SUMMARY
Property Information
TENANT Stripes, LLC
7-Eleven, Inc. (assigned through acquisition of Stripes, LLC – S&P Rated:
GUARANTOR
Investment Grade – “AA-“)
ADDRESS 2214 SE Military Drive, San Antonio, TX 78223
BUILDING SIZE ~6,720 SF
L AND SIZE ~62,373 SF
YEAR BUILT/REMODELED 2016
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LEASE COMMENCEMENT February 15, 2016
LEASE EXPIRATION February 29, 2036
REMAINING LEASE TERM ~15 Years
OP TIONS Four (4) 5-year options
LEASE T YPE Fee Simple NNN Ground Lease
L ANDLORD RESPONSIBLITIES None
RENT INCREASES See rent schedule
Rent Schedule
Term Years Date of Increase Annual Rent % Increase
Primary 6-10 2/2021 $54,000
Primary 11-15 2/2026 $57,245 6%
Asking Terms Primary 16-20 2/2031 $61,252 7%
PRIC E $1,542,000 Option 1 21-25 2/2036 $65,539 7%
C A P R ATE 3.50% Option 2 26-30 2/2041 $70,127 7%
N E T O PE R ATI N G I N COME $54,000 Option 3 31-35 2/2046 $75,036 7%
Option 4 36-40 2/2051 $80,289 7%
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
Well Below Market Rents and Replacement Costs
• Ground rent of just $54,000 per year is well below market rent providing tremendous security for any landlord. The
tenant cannot replicate anything close to these rents – we expect they will operate at this location for a long time.
• Replacement costs of just $229 psf is well below market, 7-Eleven could not relocate and build for less, further
securing them as a tenant.
Investment Grade Guaranteed Lease:
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• The lease is backed by 7-Eleven, Inc., an investment grade tenant with an S&P rating of “AA-“
• 7-Eleven is the world’s largest convenience store chain with 71,000 stores in 17 countries.
Long Term Absolute NNN Investment:
• The existing ground lease agreement has approximately 15 years remaining providing an investor long term passive
income.
• Zero landlord obligations creating a passive, management-free investment.
Internet and COVID-19 Resistant:
• Gas stations remained open and paying rent throughout 2020 during the COVID pandemic as an “essential service”
unlike several other retail tenants.
• The landscape of retail tenants offering goods and services is changing on a daily basis. The gas stations industry is
well positioned to avoid pressure from ecommerce gaining traction on market share.
• People will continue to need gas stations (and charging stations), unaffected by any e-commerce and will continue to
provide a crucial consumer need.
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
Newly Constructed By Tenant
• Stripes/7-Eleven recently constructed the brand-new building and improvements in 2016 at their
sole cost and expense, providing further security to any landlord.
Signalized Intersection
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• The subject property is ideally located at the signalized intersection of SE Military Drive and S
Presa Street.
• High traffic at this location with 37,329 cars per day passing through the intersection.
Densely Populated Trade Area
• 220,858 people in the 5-mile radius
• 73,571 households in the 5-mile radius
Well Located Along Major Thoroughfare and Multiple Highways
• Ideally located along SE Military Road, a major retail thoroughfare with high traffic.
• The property benefits from its location near 3 major highways, providing tremendous access.
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
PROPERTY
DESCRIPTION
Street Map
Aerials
Site Plan
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2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
PROPERT Y DESCRIP TION
STREET MAP
property
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property Traffic Counts
SE Military Drive: 27,573 CPD
Presa Street: 4,557 CPD
Interstate 410: 52,761 CPD
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com
PROPERT Y DESCRIP TION
AERIAL
AR Y D R IV E
S E M IL IT
property
S.
PR
ES
A
ST
RE
ET
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comPROPERT Y DESCRIP TION
AERIAL
1 M IL E 3 M IL ES 5 MIL E S
Population 6,124 96,592 220,858
Households 2,352 32,919 73,571
Average HH Income $49,090 $48,653 $47,920
SAN ANTONIO
STATE HOSPITAL
86
, 13
6C
PD
property SE MILITARY DRIVE 27,573 CPD
37
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comPROPERT Y DESCRIP TION
AERIAL
KELLY
FIELD 37
35
SE MILITARY DRIVE 27,573 CPD
property
86
, 13
P D
8 8C
0,7
6C
9
PD
STINSON
MUNICIPAL
AIRPORT
410 57,000 CPD
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comPROPERT Y DESCRIP TION
SURVEY
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2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comPROPERT Y DESCRIP TION
SITE PLAN
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2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comAREA
OVERVIEW
Tenant Profile
About San Antonio
Demographics
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2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comAREA OVERVIEW
TENANT PROFILE
7-Eleven, Inc.
www.7-eleven.com
7-Eleven Facts
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Headquarters Dallas, Texas
Locations ±71,100 (Worldwide)
Employees ±45,000 (USA)
Year Founded 1927
Private/Public Private
Company Profile
7-Eleven is part of an international chain of convenience stores, operating under announced it would acquire Speedway for $21 billion in cash, increasing their total
Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co. of U.S. locations to over 14,000 with a goal of growing to 20,000 locations.
Japan. Founded in 1927, 7-Eleven focuses on providing a broad selection of fresh,
The name 7-Eleven originated in 1946 when the stores were open from 7 AM to
high-quality products at everyday fair prices, serving over seven million customers per
11 PM. Today, offering busy shoppers 24-hour convenience, seven days a week
day in North America alone. According to their website, approximately 25% of the
is the cornerstone of 7-Eleven’s business. 7-Eleven focuses on meeting the needs of
U.S. population lives within one mile of a 7-Eleven store.
convenienceoriented guests by providing a broad selection of fresh, high-quality
Today, 7 Eleven is the world’s largest convenience store chain with more than 71,000 products and services at everyday fair prices, speedy transactions and a clean, friendly
stores in 17 countries, of which approximately 10,000 are in the U.S. and Canada. shopping environment. Each store’s selection of about 2,500 different products and
These stores see approximately 64 million customers per day. Additionally, Seven services is tailored to meet the needs and preferences of local guests.
& I Holdings employs approximately 150,000 workers. In August 2020, 7-Eleven
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comAREA OVERVIEW
ABOUT SAN ANTONIO
• Seventh-largest city in the United States. San Antonio has a diversified economy with four primary Trinity University. Tourism also brings new annual revenues
• Third-largest city within the state of Texas, with a focuses: financial services, government, health care, and to the City of San Antonio and other governmental entities
population of 1.4 million. tourism. Located northwest of the city center is the South with the hotel & motel tax, sales taxes and other revenues
Texas Medical Center, which is a conglomerate of various from hospitality agreements and contracts. This number
• Located in the American Southwest and the south
hospitals, clinics, and research and higher educational exceeded over $160 million in the 2004 study.
central part of Texas, the city serves as the seat of
institutions. The city is also home to one of the largest
Bexar County. San Antonio is home to five Fortune 500 companies:
military concentrations in the United States. The defense
• San Antonio has characteristics of other western urban Valero Energy Corp, Tesoro, USAA, Clear Channel
industry in San Antonio employs over 89,000 and provides
centers in which there are sparsely populated areas Communications, and NuStar Energy. H-E-B, the 19th largest
a $5.25 billion impact to the city’s economy.
and a low density rate outside of the city. private company in the United States is also headquartered
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Twenty million tourists visit the city and its attractions in San Antonio. Some other influential companies based out
• Fastest growing of the top 10 large city in the nation
every year, contributing a substantial amount to the city’s of San Antonio are: Kinetic Concepts, Frost National Bank,
from 2000 to 2010.
economy. The jewel of the city is the River Walk, which Harte-Hanks, Eye Care Centers of America, Bill Miller
meanders through the downtown area. Lined with numerous Bar-B-Q Enterprises, Taco Cabana, and Rackspace.
shops, bars, and restaurants, as well as the Arneson River
Theater, this attraction is transformed into an impressive
festival of lights during the Christmas and New Year holiday
period, and is suffused with the local sounds of folklorico
and flamenco music during the summer, particularly during
celebrations such as the Fiesta Noche del Rio. The Henry B.
Gonzalez Convention Center alone hosts more than 300
events each year with over 750,000 convention delegates
from around the world. Finally, the Alamo is Texas’ top
tourist attraction, drawing over 4 million visitors each year.
Tourism employs 94,000 citizens and makes an economic
impact of over $10.7 billion in the local economy as
revealed in the Economic Impact Study conducted every
two years by the San Antonio Tourism Council and the
research team of Dr. Richard Butler and Dr. Mary Stefl of
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comDEMOGRAPHICS
Executive Summary Executive Summary
7-Eleven - San Antonio, TX Prepared By Ed Colson Jr., CCIM 7-Eleven - San Antonio, TX Prepared By Ed Colson Jr., CCIM
2214 SE Military Dr, San Antonio, Texas, 78223 Latitude: 29.35086 2214 SE Military Dr, San Antonio, Texas, 78223 Latitude: 29.35086
Rings: 1, 3, 5 mile radii Longitude: -98.46064 Rings: 1, 3, 5 mile radii Longitude: -98.46064
1 mile 3 miles 5 miles 1 mile 3 miles 5 miles
Population Mortgage Income
2000 Population 3,307 83,881 199,549 2020 Percent of Income for Mortgage 10.5% 10.7% 10.7%
2010 Population 3,583 88,882 204,861 Median Household Income
2020 Population 6,124 96,592 220,858 2020 Median Household Income $36,445 $37,371 $35,955
2025 Population 6,864 100,862 233,408 2025 Median Household Income $38,393 $39,360 $37,826
2000-2010 Annual Rate 0.80% 0.58% 0.26% 2020-2025 Annual Rate 1.05% 1.04% 1.02%
2010-2020 Annual Rate 5.37% 0.81% 0.74% Average Household Income
2020-2025 Annual Rate 2.31% 0.87% 1.11%
2020 Average Household Income $49,090 $48,653 $47,920
2020 Male Population 48.7% 48.8% 49.0%
2025 Average Household Income $54,100 $52,511 $51,913
2020 Female Population 51.3% 51.2% 51.0%
2020-2025 Annual Rate 1.96% 1.54% 1.61%
2020 Median Age 34.5 34.0 34.2
Per Capita Income
In the identified area, the current year population is 220,858. In 2010, the Census count in the area was 204,861. The rate of change since 2020 Per Capita Income $20,226 $16,676 $16,026
2010 was 0.74% annually. The five-year projection for the population in the area is 233,408 representing a change of 1.11% annually from
2025 Per Capita Income $22,169 $17,987 $17,382
2020 to 2025. Currently, the population is 49.0% male and 51.0% female.
2020-2025 Annual Rate 1.85% 1.53% 1.64%
Median Age
Households by Income
The median age in this area is 34.5, compared to U.S. median age of 38.5.
Current median household income is $35,955 in the area, compared to $62,203 for all U.S. households. Median household income is
Race and Ethnicity projected to be $37,826 in five years, compared to $67,325 for all U.S. households
2020 White Alone 71.1% 72.4% 69.7%
2020 Black Alone 12.2% 3.9% 6.3% Current average household income is $47,920 in this area, compared to $90,054 for all U.S. households. Average household income is
projected to be $51,913 in five years, compared to $99,510 for all U.S. households
2020 American Indian/Alaska Native Alone
2020 Asian Alone
0.6%
1.4%
0.9%
0.5%
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1.1%
0.4% Current per capita income is $16,026 in the area, compared to the U.S. per capita income of $34,136. The per capita income is projected to
2020 Pacific Islander Alone 0.0% 0.0% 0.1% be $17,382 in five years, compared to $37,691 for all U.S. households
2020 Other Race 11.7% 19.2% 19.4%
2020 Two or More Races 3.0% 3.0% 3.0% Housing
2020 Hispanic Origin (Any Race) 60.3% 84.7% 85.1% 2020 Housing Affordability Index 196 184 187
2000 Total Housing Units 1,169 30,264 69,489
Persons of Hispanic origin represent 85.1% of the population in the identified area compared to 18.8% of the U.S. population. Persons of 2000 Owner Occupied Housing Units 331 17,521 40,923
Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from
different race/ethnic groups, is 63.4 in the identified area, compared to 65.1 for the U.S. as a whole. 2000 Renter Occupied Housing Units 740 10,694 23,521
2000 Vacant Housing Units 98 2,049 5,045
Households
2010 Total Housing Units 1,461 32,910 75,313
2020 Wealth Index 31 37 37
2010 Owner Occupied Housing Units 310 17,955 41,041
2000 Households 1,071 28,215 64,443
2010 Renter Occupied Housing Units 1,030 12,166 26,755
2010 Households 1,340 30,121 67,796
2010 Vacant Housing Units 121 2,789 7,517
2020 Total Households 2,352 32,919 73,571
2020 Total Housing Units 2,412 35,372 80,316
2025 Total Households 2,650 34,410 77,896
2020 Owner Occupied Housing Units 282 18,039 41,131
2000-2010 Annual Rate 2.27% 0.66% 0.51%
2020 Renter Occupied Housing Units 2,070 14,880 32,440
2010-2020 Annual Rate 5.64% 0.87% 0.80%
2020 Vacant Housing Units 60 2,453 6,745
2020-2025 Annual Rate 2.41% 0.89% 1.15%
2025 Total Housing Units 2,712 36,880 84,617
2020 Average Household Size 2.31 2.89 2.97
2025 Owner Occupied Housing Units 292 18,727 43,002
The household count in this area has changed from 67,796 in 2010 to 73,571 in the current year, a change of 0.80% annually. The five-year 2025 Renter Occupied Housing Units 2,358 15,683 34,894
projection of households is 77,896, a change of 1.15% annually from the current year total. Average household size is currently 2.97, 2025 Vacant Housing Units 62 2,470 6,721
compared to 2.98 in the year 2010. The number of families in the current year is 51,750 in the specified area.
Currently, 51.2% of the 80,316 housing units in the area are owner occupied; 40.4%, renter occupied; and 8.4% are vacant. Currently, in
the U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, there
were 75,313 housing units in the area - 54.5% owner occupied, 35.5% renter occupied, and 10.0% vacant. The annual rate of change in
housing units since 2010 is 2.90%. Median home value in the area is $92,289, compared to a median home value of $235,127 for the U.S.
In five years, median value is projected to change by 3.06% annually to $107,324.
Data Note: Income is expressed in current dollars. Housing Affordability Index and Percent of Income for Mortgage calculations are only available for areas with 50
or more owner-occupied housing units.
Data Note: Income is expressed in current dollars. Housing Affordability Index and Percent of Income for Mortgage calculations are only available for areas with 50
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2020 and 2025. Esri converted Census 2000 data into 2010 geography.
or more owner-occupied housing units.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2020 and 2025. Esri converted Census 2000 data into 2010 geography.
May 13, 2021
May 13, 2021
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©2021 Esri Page 2 of 2
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.comINFORMATION ABOUT BROKERAGE SERVICES
Before working with a real estate broker, you should know that the duties of a broker The Texas Real Estate License Act.The broker must obtain the written consent of each party
depend on whom the broker represents. If you are a prospective seller or landlord to the transaction to act as an intermediary. The written consent must state who will pay
(owner) or a prospective buyer or tenant (buyer), you should know that the broker the broker and, inconspicuous bold or underlined print, set forth the broker’s obligations
who lists the property for sale or lease is the owner’s agent. A broker who acts as a as an intermediary. The broker is required totreat each party honestly and fairly and to
subagent represents the owner incooperation with the listing broker. A broker who comply with The Texas Real Estate License Act. A broker who acts as an intermediary in
acts as a buyer’s agent represents the buyer. A broker may act as an intermediary a transaction:
between the parties if the parties consent in writing. A broker can assist you in
locating a property, preparing a contract or lease, or obtaining financing without (1) shall treat all parties honestly;
representing you. A broker is obligatedby law to treat you honestly. (2) may not disclose that the owner will accept a price less than the asking price unless
authorized inwriting to do so by the owner;
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IF THE BROKER REPRESENTS THE OWNER (3) may not disclose that the buyer will pay a price greater than the price
The broker becomes the owner’s agent by entering into an agreement with the owner, submitted in a written offer unless authorized in writing to do so by the buyer; and
usually through a written-listing agreement, or by agreeing to act as a subagent by (4) may not disclose any confidential information or any information that a party
accepting an offer of subagency from the listing broker.A subagent may work in a specifically instructs the broker in writing not to disclose unless authorized in writing to
different real estate office. A listing broker or subagent can assist the buyer but does disclose the information or required to do so by The Texas Real Estate License Act or a
not represent the buyer and must place the interests ofthe owner first. The buyer court order or if the information materially relates to the condition of the property.
should not tell the owner’s agent anything the buyer would not want the owner to
know because an owner’s agent must disclose to the owner any material information With the parties’ consent, a broker acting as an intermediary between the parties may
known to the agent. appoint a person whois licensed under The Texas Real Estate License Act and associated
with the broker to communicate with and carry out instructions of one party and another
IF THE BROKER REPRESENTS THE BUYER person whois licensed under that Act and associated with the broker to communicate with
The broker becomes the buyer’s agent by entering into an agreement to represent and carry out instructions of the other party.
the buyer, usually through a written buyer representation agreement. A buyer’s
agent can assist the owner but does not represent the owner and must place the If you choose to have a broker represent you, you should enter into a written agreement
interests of the buyer first. The owner should not tell a buyer’s agent anything the with the broker that clearly establishes the broker’s obligations and your obligations. The
owner would not want the buyer to know because a buyer’s agent must disclose to agreement should state how and by whom the broker will be paid. You have the right to
the buyer any material information known to the agent. choose the type of representation, if any, you wish to receive.Your payment of a fee to
a broker does not necessarily establish that the broker represents you. If you have any
IF THE BROKER ACTS AS AN INTERMEDIARY questions regarding the duties and responsibilities of the broker, you should resolve those
A broker may act as an intermediary between the parties if the broker complies with questions before proceeding.
2214 SE Military Drive, San Antonio, TX 78223 InvestCoreCommercial.com7-ELEVEN/ STRIPES CORP. GROUND LEASE 2214 SE Military Drive San Antonio, TX 78223 Exclusively Offered By: ED COLSON, JR. CCIM 619.546.0121 Ed@InvestCoreCommercial.com CA Lic #01382996 | TX Lic #635820 InvestCoreCommercial.com
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