45955 North Run Drive, Lexington Park, MD (Washington, DC) 20653 INTRO
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Brand New Build to Suit 7-Eleven Absolute NNN Lease with 10% Rent Bumps Every 5-Years Eligible for Accelerated Depreciation $7,181,000 | 4.70% CAP Located Less than 50 Miles from Downtown Washington DC Large Site - Over 2.03 Acres 45955 North Run Drive, Lexington Park, MD (Washington, DC) 20653 INTRO 7-Eleven, Inc., the Irving, Texas-based C-Store chain, operates, franchises and/or licenses almost 70,000 stores in 17 countries, including more than 12,000 locations in North America, making it the largest retailer in the world. 2 SECURE NET LEASE OVERVIEW INVESTMENT OVERVIEW 7-ELEVEN LEXINGTON PARK, MD $7,181,000 4.70% CAP NOI Strategically Located at the Intersection of Chancellors Mill Run (29,982 VPD) and Great Mills Rd. (37,492 $337,497 VPD). Building Area Brand new build-to-suit with 7-Eleven, Inc. 7-Eleven (S&P rated AA-) operates more than 11,800 company-owned, ±4,050 SF or franchised convenience stores in North America. Globally, 7-Eleven licenses more than 69,000 stores in over 18 countries. Land Area ±2.03 AC Absolute NNN Lease, with 10% rental increases every 5-years, making it an excellent passive investment that will hedge against inflation. Year Built 2021 The Subject Property is Located Across from Great Mills High School (1,650 students), and near many other large schools. Washington Carver Elementary Lease Type School, Lexington Park Elementary School, Fairfield Academy, and Chesapeake Public Charter School. Absolute NNN CONTACT FOR DETAILS Located only 4 miles from Patuxent River Air Station with over 10,000 active duty personnel and federal Russell Smith Bob Moorhead Occupancy employees. Vice President Managing Partner (214) 915-8890 (214) 522-7200 100% [email protected] [email protected] California-Lexington Park is the wealthiest metro area in Maryland. BROKER OF RECORD Marcus Bourn This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the Newmark Knight Frank accuracy of the information. Buyer must verify the information and bears all risk Washington, DC for any inaccuracies. (202) 725-0235 OVERVIEW TENANT OVERVIEW 7-ELEVEN LEXINGTON PARK, MD 7-Eleven Lesse: 7-Eleven, Inc. REVENUE 7-Eleven is now part of an international chain of convenience $5.1 B stores, operating under Seven-Eleven Japan Co., Ltd., and surpassed McDonald’s in 2007 as the world’s largest retailer. CREDIT RATING AA- 7-Eleven is also one of the nation's largest independent gasoline retailers. The company's largest markets are in the United States, Canada, the STOCK TICKER Philippines, Hong Kong, Taiwan, Malaysia and Thailand. SVNDF 7-Eleven Accolades include: Ranked #1 on Entrepreneur magazine’s Top Global TOTAL LOCATIONS Franchises List; #1 spot on Entrepreneur magazine’s Franchise 500’s Top 10 Most 70,000 Popular Retail Companies, and #2 in Forbes magazine’s Top 20 Franchises to Start; No. 2 on FranchiseRanking.com for Best Convenience Store Franchise Company USA, and among GI jobs magazine’s Top 100 Military Friendly Employers. 7-eleven.com 4 SECURE NET LEASE FEATURE IN THE NEWS 7-ELEVEN LEXINGTON PARK, MD 7-Eleven seeking 20,000 workers 7-Eleven plays host to entrepreneurs' across US locations, adding to 50,000 exclusive snacks, drinks already hired since March SEPTEMBER 1, 2020 (RETAIL CUSTOMER EXPERIENCE) DANIELLA GENOVESE, SEPTEMBER 21, 2020 (FOX BUSINESS) Convenience retailer 7-Eleven is once again supporting innovative products with its second Sips & Snacks initiative. 7-Eleven is seeking to hire an additional 20,000 employees nationwide as it looks to meet continued demand for its products This year's program will stock 200 California stores with 84 exclusive amid the COVID-19 pandemic. items from 25 up-and-coming brands, according to a press release. The stores participating in Sips & Snacks 2.0 are located in Los The new hires, which will fill positions across more than 9,000 U.S. Angeles and San Diego. stores, will also help with orders through the company's 7NOW delivery app, which has seen an uptick in orders since the pandemic hit the country earlier this month, the company announced Monday. "7-Eleven's Sips & Snacks initiative offers small businesses a rare opportunity to reach thousands — and potentially millions In hiring 20,000 more employees, 7-Eleven CEO Joe DePinto — of customers with their most innovative products. says the company will be able to "continue to fulfill our mission to give customers what they want, when and where they want it, whether in stores or at home." "This selection of sips and snacks are ones that a 7-Eleven customer might not expect to find at one of our stores," 7-Eleven Senior Vice President, Merchandising and Demand Chain Jack Stout said in the release. "7-Eleven's Sips & Snacks initiative offers small businesses a rare opportunity to reach 7-Eleven was classified as an essential retailer, meaning its convenience retail thousands — and potentially millions — of customers with their most innovative stores remained open since March although it quickly enhanced its cleaning products. We are excited to help boost emerging brands' growth, development procedures and added extra safety protocols to protect employees and and success by giving them the chance to test their products in a real retail customers. environment." Since then, the company -- including its independent 7-Eleven franchise owners -- has hired more than 50,000 workers to assist in its operations during the The products will also be available for purchase on the 7NOW delivery app for course of the pandemic. customers located in the Los Angeles and San Diego areas. In hiring 20,000 more employees, 7-Eleven CEO Joe DePinto says the company More than 750 companies applied to be invited to present their brand at the will be able to "continue to fulfill our mission to give customers what they want, company's second annual emerging brands showcase, and 65 were invited to when and where they want it, whether in stores or at home." participate in the two-day "show and taste" expo, according to the release. EXPLORE ARTICLE EXPLORE ARTICLE 5 SECURE NET LEASE OVERVIEW LEASE OVERVIEW 7-ELEVEN LEXINGTON PARK, MD Initial Lease Term 15-Years Rent Commencement August 2021 Lease Expiration August 2036 Lease Type Absolute NNN Rent Increases 10% Every 5-Years Annual Rent Years 1-5 $337,497 Annual Rent Years 6-10 $371,247 Annual Rent Years 11-15 $408,371 Option 1 $449,208 Option 2 $494,208 Option 3 $543,542 Option 4 $597,896 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6 SECURE NET LEASE SUBJECT 45955PROPERTY E. RUN DR. 7 SECURE NET LEASE OVERVIEW SITE OVERVIEW 7-ELEVEN LEXINGTON PARK, MD Year Built 2021 Building Area ±4,050 SF Land Area ±2.03 AC NEIGHBORING RETAILERS • Shell • Citgo • Pizza Hut • Weis Markets • Dollar General • U-Haul • Autozone Auto Parts • Big Lots • Aaron’s • Advance Auto Parts 8 SECURE NET LEASE OVERVIEW LOCATION OVERVIEW 7-ELEVEN LEXINGTON PARK, MD Demographics 1 Mile 3 Mile 5 Mile Population 5,899 27,626 46,215 Households 2,289 10,901 18,470 Average Household Income US$88,245 US$95,926 US$104,559 Total Household Expenditure $149.05 MM $748.36 MM $1.35 B ECONOMIC DRIVERS (NUMBER OF EMPLOYEES) 1. U.S. Navy (11,725) 7. HMR of Maryland-Charlotte Hall (440) 13. Lockheed Martin (315) 2. MedStar St. Mary's Hospital (1,200) 8. Booz Allen Hamilton (400) 14. Boeing (280) 3. DynCorp International (985) 9. PAE Applied Technologies (395) 15. McKay's Food and Drug (275) 4. Wyle (910) 10. Northrop Grumman (380) 5. BAE Systems (580) 11. General Dynamics (350) 6. St. Mary's College of MD (460) 12. J.F. Taylor (335) 9 SECURE NET LEASE OVERVIEW LOCATION OVERVIEW 7-ELEVEN LEXINGTON PARK, MD Lexington Park Maryland 11,082 $74,598 Population Median Household Income Lexington Park has a large military population, and the area's booming Lexington Park was ranked Lexington Park is also well-served by the St. Mary's City technology and aerospace sectors also attract people from around the country. the healthiest place to live Transit System, which has 10 separate routes passing through On any given day, you'll find the people of Lexington Park, working, running in Maryland by 24/7 Tempo town. errands on Three Notch Road and Great Mills Road, or kicking back at beautiful Elms Beach Park. For activities with a bit more historic flare, there's the Patuxent 24/7 The result is a dynamic, diverse, and rapidly growing population. River Naval Air Museum; the Mattapany-Sewall archaeological site, which offers an interesting glimpse at the 17th-century arsenal; and nearby Historic St Mary's City, a careful recreation of Maryland's first settlement. Residents of Lexington Lexington Park has a large military population, and the area's booming St. Mary's is the 3rd Park tend to work either in the town itself or in nearby towns such as St. Mary's technology and aerospace sectors also attract people from around the Fastest Growing City, California, and Leonardtown, and getting around is relatively easy. The County in Maryland. country. main thoroughfares are Great Mills Road and Three Notch Road, which merges with Maryland Route 5 to take you directly to Washington, D.C., just 60 miles away. 3rd Lexington Park is located where the Patuxent River meets the Chesapeake Bay, 62 miles south of Washington, D.C., and it is home to the Patuxent Naval Air Station, where astronauts John Glenn and Alan Shepard trained.