After two other brokerage firms were unable to find a suitable investor to buy a “pride-of-ownership” 7-Eleven/Shell Oil gas station, a three-man Colliers International team working from two of the firm’s most distant office completed the sale-lease back with a fourth Colliers broker representing the buyer.
Colliers Senior Vice President Heath Charamuga and Vice President Mark Engemann, both of the firm’s Sacramento office, brought Senior Vice President Mehran Foroughi of the firm’s Irvine office onto Colliers listing team because of his extensive experience with 7-Eleven-anchored investments. The listing team targeted both investors and brokers on a national level, as well as in the localized market.
"We were the third set of brokers to list this property,” said Foroughi. “Despite their best efforts, two other firms who had previously represented the property were unable to solicit any offers on the property. At the end of our process, we had multiple offers to choose from.”
Located at 1213 Galleria Blvd., the combination 12-pump Shell gas station/car wash and 7-Eleven convenience store sits on a 1.2-acre parcel at the entrance to one of Roseville’s most popular shopping centers, the 371,000-square-foot Creekside Town Center. The new 20-year lease was signed at the close of escrow and guaranteed by the single-unit operator.
According to Engemann , the Colliers listing team then marketed the highly visible and well-located investment to thousands of brokers and investors – both within Colliers’ national network and to outside brokers -- and quickly received multiple offers. It was an Irvine-based colleague of the three listing brokers, Senior Vice President Robert Hoyt, who completed the deal with a Santa Monica-based investment client in an all cash 1031 exchange.
“The fact that the property is located on one of the most highly travelled streets in the area and that it was a sale-leaseback proposition at a key entrance to such an upscale power center, were all attractive to my client,” said Hoyt. “Traffic counts exceed 200,000 a day, it’s right in the center of the city’s major shopping district, and with a 6.18 percent cap rate and guaranteed triple-net increases annually, the decision was fairly cut and dry for my client.”
In addition to those factors, noted Charamuga, the region is one of the fastest-growing in the state with population increases for Placer County in the last decade exceeding 42 percent and new housing units growing by as much as 50 percent, placing it in the top 1 percent of the nation. Roseville and Rocklin, the two suburbs that the center services, are among the wealthiest in terms of household income and home values in California.
“The key to completing this transaction was the coordination of our offices that were separated by about 400 miles, but which allowed us to tap into a vast network of potential investors through our own brokers and those of outside firms up and down the state,” added Foroughi. “Due the favorable location and long term lease with nationally recognized tenant, we were successful in identifying the best suited buyer through our marketing efforts.”