7-Eleven - 730 Hwy 31 E, Chandler, TX
Listing Highlights
- •15 Year Absolute NNN Lease
- •Zero Landlord Obligations
- •Corporate Guaranty: Investment Grade Credit
- •7-Eleven Corporate (S&P: AA-)
- •Located in Strong Texas Market
- •Income Tax Free State
Sergio Lopez
TAG Industrial
Tenant Details
Lease Details
Narrative Summary
Based on an offering memorandum for a 15-year absolute NNN lease of a 7-Eleven store in Chandler, TX. Lease commenced 2020-06-15 and expires 2035-06-30, with zero landlord obligations, 7.5% rent increases every five years, and three successive five-year renewal options. Tenant is Montfront, franchised by and guaranteed by 7-Eleven Corporate.
Lease Options
Lease Analysis
Investor Favorable
- Absolute NNN lease with zero landlord obligations
- 7.50% rental increases every 5 years
- Three 5-year renewal options
* Indicates the lease ends during this calendar year. The displayed value is an annualized projection.
Investment Highlights
- 15-year absolute NNN lease with zero landlord obligations
- Investment-grade tenant with S&P AA- corporate guarantee from 7-Eleven
- Built-in rent escalations every 5 years (7.5% increases)
- Three successive 5-year renewal options providing potential 30-year total term
- Stable convenience store/fuel operation with consistent local demand
- Highway frontage location providing excellent visibility and accessibility
- Texas market benefits from no state income tax
Risk Factors
- Single-tenant concentration risk - property dependent on one tenant's performance
- Tertiary market location may limit liquidity and resale options
- Long-term lease may limit rent growth compared to shorter-term leases
- Potential for changing consumer patterns affecting convenience store demand
- Limited ability to influence property performance due to NNN lease structure
- Renewal risk upon lease expiration despite strong tenant profile
Feature Tags
Underwriting Insights
Key underwriting assumptions include the creditworthiness of 7-Eleven Corporate guarantee and the sustainability of convenience store operations at this location. The 6.18% cap rate reflects appropriate pricing for investment-grade single-tenant retail in a tertiary market. Rent escalations provide built-in NOI growth, with total rent increasing to approximately $277K by years 11-15.
Analyst Notes
This represents a classic Core investment opportunity with an investment-grade tenant in a stabilized, income-producing asset. The 15-year absolute NNN lease structure with 7-Eleven Corporate guarantee provides exceptional cash flow predictability and minimal management requirements. The 6.18% cap rate is competitive for investment-grade single-tenant retail, particularly in a tertiary market. Built-in escalations and renewal options provide additional value protection. Ideal for income-focused investors seeking passive real estate exposure with minimal landlord responsibilities. The convenience store format has demonstrated resilience across economic cycles, supported by essential service nature and local market demand.