Circle K Tenant Overview
Updated: November 15, 2023
Pros
- 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
Cons
- 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 60 years.
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. Circle K has over 14,000 stores worldwide
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. It has four main store brands: Couche-Tard, Kangaroo Express, Mac's and Circle K. Recently, Couche-Tard acquired Topaz, Ireland’s largest convenience and fuel retailer. Couche-Tard is making a continuous effort to rebrand all of their existing locations under the Circle K banner, except for the Couche-Tard retail brand locations in the province of Quebec due to specifics of that market.
Average Cap Rate
5.75%
Trailing 12-month average
Average Property & Lease
Average Sale Price |
$2,552,464 |
NOI |
$139,497 |
$/Square Foot |
$567 - $1,276 |
Building SF |
2,000 - 4,500 |
Lot Size |
0.5 - 1.0 Acres |
Lease Term |
10 - 15 Years |
Escalations |
5 - 10% Every 5 Years |
Stock Symbol |
N/A |
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Visalia, CA |
5.01% |
Amelia, OH |
5.75% |
Locust Grove, GA |
6.00% |
Phoenix, AZ |
6.63% |
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