| Purchase Price | $11,720,000 |
|---|---|
| Annual Rental Income | $586,000 |
| Cap Rate | 5% |
| Lease Term | 14 Years |
| City | Tempe MSA |
7-Eleven Triple Net Investment Opportunity
Tempe/Phoenix MSA, Arizona
This offering represents an outstanding opportunity to acquire a newly constructed 7-Eleven convenience store and fueling station located in the fast-growing Tempe/Phoenix Metropolitan Statistical Area. Situated on a high-visibility hard corner with strong traffic exposure, fee simple ownership, an absolute triple net lease backed by a corporate guarantee, and scheduled rental escalations, this asset delivers long-term, stable cash flow and excellent tax advantages in one of the most dynamic real estate markets in the Southwest.
Location and Market Overview
The property is prominently positioned at a signalized hard corner intersection in the Tempe/Phoenix MSA, with daily traffic counts exceeding 62,000 vehicles on the primary frontage and approximately 34,000 vehicles on the intersecting roadway. This prime location ensures exceptional visibility and accessibility to commuters, residents, and visitors alike, maximizing exposure and sales potential for the tenant.
Tempe and Phoenix are part of the rapidly expanding Greater Phoenix metropolitan area, home to over 4.7 million residents and one of the fastest-growing urban markets in the United States. The region benefits from a diversified economy including technology, healthcare, manufacturing, education, and tourism sectors. Tempe itself is a vibrant college town anchored by Arizona State University, contributing to a youthful, growing population and strong daytime activity.
Demographics
The immediate trade area features solid demographic fundamentals supporting consistent retail demand. Within one mile, average household income exceeds $85,000. Expanding to three miles, the average household income rises to approximately $92,000, with a population exceeding 95,000 residents. Within five miles, the population surpasses 275,000, with average household incomes near $88,000. Per capita income in the area is approximately $38,000, with a sizable percentage of households earning above $100,000 annually.
These demographics, combined with ongoing population growth and robust economic activity, create a strong consumer base for convenience retail and fueling services.
Property Details
The subject property occupies approximately 1.1 acres on a signalized hard corner. The site features a modern fueling canopy with multiple pump islands, a contemporary convenience store building, and ample parking designed to accommodate high customer turnover and smooth traffic flow. Monument and building signage maximize tenant visibility from all directions.
Ownership is fee simple, providing the investor full rights to land and improvements without ground lease restrictions. The parcel size offers long-term flexibility for asset management and potential future redevelopment.
Lease Structure and Tenant Guarantee
The property is leased to 7-Eleven, Inc. under an absolute triple net lease, with the tenant responsible for all operating expenses including property taxes, insurance, and maintenance of roof and structure. This lease arrangement delivers a truly passive investment with no landlord management responsibilities.
The initial lease term is 15 years, with four successive five-year renewal options, offering up to 35 years of tenancy. Rental increases of 10% are scheduled every five years, providing reliable income growth and protection against inflation.
The lease is backed by a corporate guarantee from 7-Eleven, Inc., a nationally recognized convenience retail leader with an A-rated credit profile and thousands of locations nationwide, ensuring strong financial security for investors.
Tax Benefits and Bonus Depreciation
As a newly developed retail fueling property, this asset qualifies for bonus depreciation and accelerated cost segregation, allowing investors to take significant upfront tax deductions. These tax benefits, combined with steady rental income, enhance after-tax returns, especially for high-net-worth individuals, 1031 exchange buyers, and institutional investors.
Surrounding Area and Trade Drivers
The Tempe/Phoenix metro area is supported by a broad and resilient economy anchored by technology, healthcare, education, finance, and tourism. The presence of Arizona State University in Tempe brings a vibrant population and steady daytime traffic, while Phoenix’s growing job market attracts a diverse and expanding workforce.
The property’s immediate vicinity includes a mix of residential neighborhoods, retail centers, restaurants, and service providers, generating strong complementary traffic. Nearby national tenants include grocery stores, quick service restaurants, banks, and other retailers. The site’s location near major highways such as the Loop 101 and Interstate 10 enhances connectivity and commuter traffic.
Investment Highlights
Buyer Profile and Financing
This property is well-suited for 1031 exchange buyers, private investors, institutional funds, and family offices seeking a secure, passive income investment. The fee simple ownership combined with an absolute NNN lease and corporate guarantee makes the asset highly attractive to lenders and desirable for buyers focused on long-term stability with minimal management. The combination of scheduled rent escalations, strong credit tenancy, and tax efficiency enhances the investment profile.
Conclusion
This 7-Eleven in the Tempe/Phoenix MSA offers a best-in-class net lease investment with long-term income stability and growth potential. Featuring an absolute triple net lease, corporate guarantee, escalating rental income, and fee simple ownership on a prime hard corner with strong traffic and supportive demographics, this asset provides an excellent opportunity for investors seeking passive, inflation-protected, and tax-advantaged cash flow.
Qualified investors are invited to request the full offering memorandum, financial analysis, and acquisition details.