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7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Circle K


Average Property & Lease

Average Sale Price$4,315,000
CAP Rate (12mo avg with 10+ lease term)5.75%
NOI$248,113
$/Square Foot$400 - $800
Building Size2,000 - 4,500 sf
Lot Size0.5 - 1.0 acres
Lease Term15 - 17 Years
Escalations8.5% Every 5 Years
CREDIT RATING
BBB
S&P
Baa2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Circle K is a highly sought after net lease C-store tenant. Investors are attracted to their fully passive NNN leases which are backed by an investment grade corporate guarantee from the parent company Alimentation Couche-Tard inc. Circle K stores also feature strong intrinsic real estate as they are almost always located at highly trafficked intersections. Furthermore, because many Circle K stores feature gasoline, investors can take advantage of accelerated depreciation on building improvements.
 

Pros

Cons

  • Investment Grade corporate guaranty
  • Strong intrinsic real estate, usually located at a highly trafficked intersection
  • Fully passive NNN lease with periodic rental increases
  • Advantageous accelerated depreciation on improvements due to nature of tenant's business
  • Environmental concerns over petroleum products, although tenant fully indemnifies Landlord
  • Smaller sites pose hurdles for potential redevelopment
Tenant Description

Circle K has been a successful convenience store operator for over 50 years. There are more than 3,300 Circle K stores across the USA and over 4,000 international locations. Circle K is mainly located in the Southern, Western, Southwestern, and Midwestern United States. Internationally, Circle K has stores in Mexico, China, Japan, Guam, Vietnam and the United Arab Emirates.

The parent company of Circle K - Alimentation Couche-Tard inc. - is the largest independent convenience store operator (regardless of petroleum integration) in terms of number of company-operated stores in North America. Couche-Tard is a Canadian company with roughly 53,000 employees. It achieves annual revenues of over $15.8 billion and services some 25 million customers each week. It has three main store brands: Couche-Tard, Mac's and Circle K. Recently, the company acquired the 90-store Spectrum chain serving Georgia and Alabama, the CFM chain in Missouri, 35 Sterling Dairy locations in Northwest Ohio, and 26 stores under various brands from Chico Enterprises of Morgantown, West Virginia. In 2005 Couche-Tard rebranded several of their stores (Mac's, Bigfoot, Dairy Mart, and Handy Andy) under the more nationally-known Circle K brand.


CIRCLE K TREND
CAP Rate

2014 avg: 5.65%

2015 avg: 6.38%

RECENT SALES

Las Vegas, NV

$1,450,000 | 5.5%

Riverside, CA

$2,200,000 | 6.96%

MORE INFO
www.circlek.com
Google Finance: ANCUF
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