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7-Eleven (Corporate) 270 Broad StreetProvidence, RI 02903

NET LEASE INVESTMENT OFFERING


TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty Overview

II. Location Overview

Site PlanAerialsMapsPhotos

III. Market & Tenant Overview

Tenant ProfileLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale the fee simple interest in a single tenant net leased 7-Eleven property located in Providence, Rhode Island. 7-Eleven is committed to this location as evidenced by their recently extended lease which expires in August 2030. The absolute triple net lease features a 5% rental escalation in the primary term and three 5-year renewal option periods with 10% rental escalations. 7-Eleven is an investment grade tenant with a Standard & Poor’s rating of AA-.

The 2,958 square foot 7-Eleven is located along Broad Street, a primary thoroughfare that provides direct access to downtown Providence. Broad Street experiences traffic counts of 16,500 vehicles per day. The subject property is located within close proximity to multiple residential communities, businesses, schools and universities. Classical High School and Providence Career & Technical Academy are both located immediately across the street from the property. Rhode Island Hospital, the largest hospital in the state, and Johnson & Wales University, a private university with over 16,000 students, are both located one-half mile from the property as well. The property benefits from its close proximity to Interstate 95 which experiences traffic counts of 197,800 vehicles per day. National retailers located in the immediate area include McDonald’s, Burger King, Star Market and Dunkin’ Donuts. There are over 228,700 people living within a three mile radius of the property.

7-Eleven signed a lease extension adding eight years to the initial term which now expires August 31, 2030. The lease is an absolute triple net and features a 5% renal escalation in September 2025 and 10% rental escalations in the three 5-year renewal option periods. 7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 56,600 stores in 18 countries. 7-Eleven is also one of the nation’s largest independent gasoline retailers and was ranked #1 by Entrepreneur Magazine in the 2017 annual “Franchise 500” ranking.

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• Long term lease with 12 years remaining

• Corporately guaranteed

• Absolute NNN lease with no landlord responsibilities

• Rental escalation in primary term and three 5-year renewal option periods

• Strong performing store as evidenced by recent lease extension

• Excellent visibility and convenient access

• Benefits from its position to downtown Providence

• Densely populated area with over 228,700 people living within a three-mile radius and 409,295 people living within a five-mile radius of the property

• 7-Eleven is an investment grade rated tenant (S&P: AA-)

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price: $3,758,333

Cap Rate: 5.10%

Net Operating Income: $191,675$201,259 9/2025 $221,385 9/2030 (Option 1) $243,523 9/2035 (Option 2)$267,875 9/2040 (Option 3)

Renewal Options: Three 5-Year

Lease Commencement Date: September 1, 2004

Lease Expiration Date: August 31, 2030

Tenant: 7-Eleven, Inc.

Standard & Poor’s Rating: AA-

Year Built 2004

Lease Type: Absolute NNN – No Landlord Responsibilities

Parking: 10 Spaces

Building Size: 2,958 SF

Land Size: 0.62 Acres

Address: 270 Broad Street, Providence, RI 02903

LOCKWOOD STREET

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WICKHAM STREET

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SITE PLAN

AERIAL


N

Broad Street (16,500 VPD)

Wickham Street

Lockwood Street

(197,800 VPD)

95

Classical High School

Providence Career & Technical Academy

AERIAL


N

(197,800 VPD)

(161,600 VPD

)

195

Providence Career & Technical Academy

Classical High School

Rhode IslandState House

1.4M+ SF, 160+ Stores

DOWNTOWN PROVIDENCE RHODE ISLAND HOSPITAL

95

Providence AMTRAK Station

Broad Street (16,500 VPD)


MAP

N


EXTERIOR PHOTOS


TENANT PROFILE

7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 56,600 stores in 18 countries. 7-Eleven is also one of the nation’s largest independent gasoline retailers. Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling perishable items as a convenience to guests. The company’s iconic products have become a substantial part of American culture from its well-known Big Gulp® fountain soft drink and Big Bite® grill items to the Slurpee® beverage and its fresh-brewed coffee. 7-Eieven’s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. The name 7-Eleven originated in 1946 when the stores were open from 7:00AM to 11:00PM. 7-Eleven was ranked #1 by Entrepreneur Magazine in the 2017 annual “Franchise 500” ranking. It is an investment grade rated company with a Standard & Poor’s rating of AA-.

Website: www.7-eleven.comFounded: 1927Number of Locations: 56,600Number of Employees: 45,000+Standard & Poor’s Rating: AA-Headquarters: Irving, Texas

TENANTPROFILE:


LOCATION OVERVIEW

Providence is the capital of and most populous city in Rhode Island, founded in 1636 and one of the oldest cities in the United States. It was founded by Roger Williams, a religious exile from the Massachusetts Bay Colony. He named the area in honor of “God’s merciful Providence” which he believed was responsible for revealing such a haven for him and his followers to settle. The city is situated at the mouth of the Providence River at the head of Narragansett Bay.

Providence was one of the first cities in the country to industrialize and became noted for its textile manufacturing and subsequent machine tool, jewelry, and silverware industries. Today, the city of Providence is home to eight hospitals and seven institutions of higher learning which have shifted the city’s economy into service industries, though it still retains some manufacturing activity. The city was once nicknamed the “Beehive of Industry”; it began rebranding itself as the “Creative Capital” in 2009 to emphasize its educational resources and arts community.

The city is located in Providence County and is the third most populous city in New England, after Boston and Worcester. Providence has a city population of 179,154; it is also part of the Providence metropolitan area, which extends into southern Massachusetts and in turn constitutes a part of Greater Boston, the sixth-largest U.S. combined statistical area with over 8 million residents. The Providence metropolitan area has an estimated population of 1,604,291, which exceeds that of Rhode Island as a whole by about 60%.

Prominent companies headquartered in Providence include Fortune 500 Textron, an advanced technologies industrial conglomerate; United Natural Foods, a distributor of natural and organic foods; Fortune 1000 Nortek Incorporated; Gilbane, a construction and real estate company; and GTECH Corporation, which recently moved its world headquarters to downtown Providence. Citizens Bank is also headquartered in Providence and is the 15th largest bank in the country.

Providence is home to eight hospitals, most prominently Rhode Island Hospital, the largest general acute care hospital in the state. It is also the Level I Trauma Center for Rhode Island, Southeastern Massachusetts and parts of Connecticut. The hospital is in a complex along I-95 that includes Hasbro Children’s Hospital and Women and Infants Hospital. The city is also home to the Roger Williams Medical Center, St. Joseph Hospital for Specialty Care (a division of St. Joseph Health Services of Rhode Island), The Miriam Hospital, a major teaching affiliate associated with the Alpert Medical School of Brown University, as well as a VA medical center.

Rhode Island is easy to reach by air, rail or highway. Warwick’s T.F. Green Airport is just 10 minutes from Providence, and Amtrak and MBTA rail service is located in the heart of downtown. The Rhode Island Public Transit Authority (known as RIPTA) provides convenient public bus transportation throughout the state.

www.providenceri.gov

LOCATION OVERVIEW:


DEMOGRAPHICS

DEMOGRAPHIC REPORT: Population 1 Mile 3 Mile 5 Mile

Total Population 36,148 228,777 404,805

Total Households 13,411 82,477 157,308

Income 1 Mile 3 Mile 5 Mile

Average Household Income $47,782 $62,034 $65,513

Randy [email protected]

John FeeneyVice [email protected]

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

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