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Circle K 103 W Jourdan St 6,129 SF Retail Building Newton, IL 62448 $3,126,850 CAD ($510.17 CAD/SF) 6% Cap Rate
Investment Highlights
- Absolute triple-net lease with zero landlord responsibilities.
- Circle K exercised a renewal option early in 2016 extending their lease until 2031.
- Circle K, Inc. holds a strong, investment-grade credit rating of BBB+ (S&P).
- Tenant is responsible for all expenses at the property (Real Estate Taxes, Insurance, Roof, Structure and Parking Lot).
- The lease is backed by Circle K, Inc., a subsidiary of Alimentation Couche-Tard, Inc-publicly-traded Canadian multi-national operator of gas stations.
Executive Summary
The Property features an absolute triple-net (NNN) lease structure, which ensures the tenant is responsible for all property expenses, including real estate taxes, insurance, roof, structure, and the parking lot, leaving the landlord with zero management and maintenance responsibilities.
The lease is corporately guaranteed by Circle K, Inc., a subsidiary of Alimentation Couche-Tard, which maintains an investment-grade credit rating of BBB+ from S&P. With the current lease term running through June 30, 2031, the asset provides over five years of firm term remaining, supported by three additional five-year renewal options that include 7.50% rent increases at each interval.
The offering highlights significant potential tax advantages through bonus and accelerated depreciation. Under the One Big Beautiful Bill Act (OBBBA), qualifying assets such as gas stations may allow investors to deduct 100% of eligible property costs in the first year of service, potentially offering substantial federal income tax savings (Consult Professional Tax Advisor).
Steven Weinstock | Marcus & Millichap Illinois Broker of Record | One Mid-America Plaza Suite 200, Oakbrook Terrace, IL 60181 | Phone: 630-570-2200 | Steven.Weinstock@marcusmillichap.com | License: 471.011175
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Property Facts
Major Tenants
- Tenant
- Industry
- SF Occupied
- Rent/SF
- Lease Type
- Lease End
-
- Retailer
- 6,129 SF
- $30.59 CAD
- Triple Net
- Jun 2031
Circle K is a global convenience store brand that originated in 1951 when Fred Hervey purchased three Kay’s Food Stores in El Paso, Texas. Initially focused on the southwestern United States, the company expanded rapidly through acquisitions and franchising, entering international markets by 1979. After filing for bankruptcy in 1990, Circle K underwent ownership changes before being acquired in 2003 by Alimentation Couche-Tard, a Canadian multinational based in Laval, Quebec. Today, Circle K operates thousands of locations worldwide, offering convenience retail and fuel services under various fuel brands. The company introduced a global rebranding initiative in 2015 to unify its identity across markets. Circle K is a subsidiary of Alimentation Couche-Tard, which trades publicly on the Toronto Stock Exchange under the ticker ATD.
| Tenant | Industry | SF Occupied | Rent/SF | Lease Type | Lease End | |
|
|
Retailer | 6,129 SF | $30.59 CAD | Triple Net | Jun 2031 |
Property Taxes
| Parcel Number | 90-12-01-131-015 | Improvements Assessment | $285,329 CAD |
| Land Assessment | $41,215 CAD | Total Assessment | $326,545 CAD |
Property Taxes
Contacts
-
Jordan Klink -
Jeremie Johnson -
Nathan Whalen -
Steven Weinstock -
Marcus & Millichap
Presented by
Circle K | 103 W Jourdan St
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