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NNN Retail

Circle K Corporation - NNN Sale with Limited Lease Term

Southwest Region
2023
Convenience Store with Fuel

Overview

Long-time client relationship spanning multiple transactions led to this complex assignment. The seller owned a Circle K NNN property with a creditworthy national tenant but faced a significant challenge: only 8 years remained on the lease term. In the NNN retail market, this limited lease term created substantial financing obstacles, as most conventional lenders require 10-15 years of remaining term for standard financing programs. The assignment demanded creative marketing and buyer identification strategies to overcome these structural limitations.

The Challenges

Every complex transaction presents unique obstacles that require creative problem-solving.

Limited Lease Term

Only 8 years remaining on lease, below the 10-15 year threshold most conventional lenders require for NNN financing programs.

Financing Constraints

Most conventional lenders would not provide standard terms, limiting the buyer pool to those with substantial equity or alternative financing sources.

Market Timing

Rising interest rate environment created additional pressure on leveraged buyers, further reducing the qualified buyer universe.

Our Strategy

Rather than pursuing traditional marketing channels that would attract primarily leveraged buyers, we implemented a targeted campaign focused on all-cash and high-equity investors. We leveraged our national NNN network to identify buyers who had demonstrated capacity for non-traditional deal structures.

Identified all-cash buyer universe through proprietary database and national NNN relationships

Leveraged national NNN network to connect with qualified high-net-worth investors and family offices

Structured seller-friendly terms that provided flexibility on closing timeline while maintaining pricing discipline

Pre-qualified buyers for financial capacity before presenting offers to ensure transaction certainty

Negotiated favorable terms despite lease limitations by emphasizing location quality and tenant credit

The Outcome

Successfully closed the transaction with a qualified all-cash buyer who had the financial capacity to close without conventional financing complications. The seller achieved favorable terms despite the lease term limitations, preserving the relationship for future transactions.

Closed On Schedule
Transaction Status
All-Cash Investor
Buyer Type
10+ Years, Multiple Deals
Client Relationship
"The team understood the complexity of our situation immediately. Rather than taking a standard approach, they crafted a targeted strategy that found the right buyer for our specific circumstances. Their national network made all the difference."
Private Investor
Multi-Property NNN Owner

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