850 N Mantua St
Kent, OH 44240
Circle K Abs. NNN | 9+ Yrs | 1.5% Annual Bump · Retail Property For Sale

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to market for sale Circle K in Kent, Ohio. The subject property is a 2,068-square-foot all-brick convenient store and 8-pump canopied gas station built in 1994 and situated on 0.39-acre. Circle K is leased to absolute net terms through December 2027, providing the prospective purchaser with 9.25 years of remaining lease term. As an absolute net lease, there are zero landlord responsibilities. Circle K is subject to 1.5 percent annual rent increases, providing a strong inflation hedge and significant income growth over the hold period. As a convenience store with a gas station, the property may be depreciated on an accelerated 15-year schedule, providing greater annual cash flow to the prospective purchaser versus most other non-gas station assets that must be depreciated over 39 years. The property carries a both a corporate guarantee from parent company Alimentation Couche-Tard Inc. and a subsidiary guarantee from Mac’s Convenience Stores LLC, a business unit of Couche-Tard. Couche-Tard is one of the largest convenience and gas retailers in the world with 16,000 locations in North America and Europe, including 7,800 locations throughout 48 states. Couche-Tard is publicly traded on the Toronto Stock Exchange (ATD-A) with a current market capitalization of $37.7 billion, and carries Moody’s “Baa2” investment grade credit with a stable outlook. In fiscal year 2018, Couche-Tard reported sales of $51.39 billion. Circle K is located along North Mantua Street/Route 43, which sees strong traffic counts of 23,170 cars per day. Route 43 is the primary north-south thoroughfare connecting Kent to Interstate 80 (Ohio Turnpike) seven miles to the north and Interstate 76 four miles to the south. Kent is a major college town home to Kent State University’s main campus with 28,122 students enrolled. Kent State University is an NCAA Division I school, with it’s sprawling 866-acre grounds located just one mile from the subject property. The immediate surrounding area is marked by dense infill streets of single-family homes, with 8,764 residents within one mile, 44,674 residents in three miles, and 90,707 residents within five miles. Kent is part of the Akron MSA with a population of 700,000, and is within the larger Cleveland-Akron-Canton CSA with a population of 3.5 million.