100% Bonus Depreciation

Historic tax deferral exists for investors who purchase gas stations or convenience stores that have significant retail gasoline operations (“C-Stores”). By purchasing a qualified C-Store, the investor generally is eligible for 100% bonus depreciation on the entire purchase price (excluding any portion allocated to land or goodwill). These bonus depreciation deductions then can be used to offset the investor’s income or gains from other sources in the first year of real estate ownership, resulting in the desired tax deferral.

Find out how 100% Bonus Depreciation can off-set large capital gains and other passive income or ALL active income for real estate professionals.

The opportunity for 100% Bonus Depreciation coupled with the viability of 7-Eleven, QuikTrip, Kum & Go, and Wawa and their ability to thrive during Covid19 – compared to the rest of the NNN industry, has sent demand for these net lease assets to an all-time high.

Brand new 7-Eleven, QuikTrip, Kum & Go, and Wawa opening in 2021 are available now, but won’t be for long! Last year’s inventory of new 15+ year NNN leased property to 7-Eleven, QuikTrip, Kum & Go, and Wawa properties, that qualified for 100% Bonus Depreciation in 2020, were entirely sold out prior to year-end.

You’re in good hands. We sell more net leased C-Store properties nationally than any other brokerage firm. We work with only the best properties, leased to CORPORATE tenants (not franchisees) and the most reputable companies like 7-Eleven, QuikTrip, Wawa, and Kum & Go. We can show you every
C-store available for sale, including those opportunities not yet available to the open market. Ask to see our proprietary database. We’ve cataloged over 50,000 c-store location along with landlord contact info., roughly one-third of all c-stores in the U.S.

We understand 100% Bonus Depreciation better than anyone. Since 2019, we’ve closed escrow on over $600 Million C-Store properties, net leased to companies like 7-Eleven, QuikTrip, Kum & Go, and Wawa with multi-billion-dollar balance sheets.

In December 2020, we closed escrow on $108,600,000 of 7-Eleven properties, with QUALIFYING LEASES, to off-set massive gains for our buyers utilizing 100% Bonus Depreciation to wipe-out their entire 2020 tax obligation.

Of all the 7-Eleven’s sold in 2020 through the U.S. with new 15+ year leases, Secure Net Lease closed escrow on 35.6% of them. Our next closest competitor sold 7.5% of them. Our relationships with key members within 7-Eleven’s real estate department and 7-Eleven’s preferred build-to-suit net lease developers throughout the U.S., make our marketplace knowledge second to none and give us the ability to turn non-qualifying leases into QUALIFYING LEASES for 100% Bonus Depreciation.

Secure Net Lease is also QuikTrip’s preferred brokerage firm for sale-leaseback properties. Since 2019, we have closed 84.5% of all net lease QuikTrip properties available to the marketplace.

Well, nothing is perfect, and there is inherent risk to owning any investment property, but owning the right C-Store leased to a credit worthy tenant is as close as it gets to perfect. Buying a property with a net leased to 7-Eleven, QuikTrip, Kum & Go, or Wawa is widely recognized as one of the safest, and most secure real estate investments.

Unlike many other retail investment properties, every property leased to 7-Eleven, QuikTrip, Kum & Go, and Wawa is guaranteed by the full assets of these billion-dollar corporations. They are also the only retail real estate investment property that benefits from 100% bonus depreciation on the entire value of the building and any improvements.

Not all C-Store investments qualify for 100% Bonus Depreciation.

As an owner of a property leased to 7-Eleven, QuikTrip, Kum & Go, or Wawa, you will have ZERO management responsibility and ZERO exposure to any unforeseen cost or expenses.The standard
C-Store lease is triple-net (NNN), meaning that the tenant itself is legally obligated to handle the payment and management of all operating expenses, insurance, and property taxes.

As an investor, there are no hidden fees and no ownership headaches. 7-Eleven, QuikTrip, Kum & Go, and Wawa, as the tenant are solely responsible for maintenance repairs and insurance costs in addition to rent.

In many ways owning an investment property NNN leased to 7-Eleven, QuikTrip, Kum & Go, and Wawa is like owning a corporate bond – your investment will produce consistent yield to maturity. Unlike other types of real estate, here you also get 100% Bonus Depreciation on the full value of the improvements in your first year of ownership on those C-Store’s with QUALIFYING LEASES.

We know of no instance where 7-Eleven, QuikTrip, Kum & Go, or Wawa have ever defaulted on a lease in the history of tenant operations. Rent is paid monthly, like clockwork. And will be for the next 15+ years of the lease. Many of these tenants thrive during an economic downtown and experienced no layoffs during the 2008 recession. 7-Eleven averages 43-year occupancy on established locations.

With sales at 3.2% of our national GDP, and over 50% of U.S. consumers shop at a C-Store daily, according to a 2018 National Association of Convenience Stores (NACS) report. C-Stores are considered essential businesses and most thrived during Covid19. 7-Eleven added more than 70,000 jobs in 2020 amidst the pandemic.

Not only are C-Stores the only retail investment property that benefits from 100% Bonus Depreciation – in YEAR ONE, but they are also insulated against many of the struggles that retail has experienced over the years, from external factors like Amazon and the Covid19 pandemic.

Don’t forget, that in addition to the benefits of 100% Bonus Depreciation and a stable income stream and no maintenance responsibility, you are also buying real estate! Generally speaking, there is a C-store on the best corner in every town. Companies like 7-Eleven, QuikTrip, Kum & Go, and Wawa are highly selective in their site selection criteria, and most new stores are located on a high traffic-signalized corner with great visibility and vehicle access.

7-Eleven, QuikTrip, Kum & Go, and Wawa are considered to be the most sought-after tenants in the NNN industry today and typically get first pick of these highly desirable corners throughout the U.S.

Each site must meet the strict criteria of their corporate real estate departments, including:

• Demographic requirements
• Traffic counts
• Cost, sales & profitability modeling
• competition analysis
• trade area concentration

7-Eleven, QuikTrip, Kum & Go, and Wawa are corporations with a long track record and a long-term vision. And the key component of that strategy is opening stores in locations that will be most profitable. Remember, when 7-Eleven, QuikTrip, Kum & Go, and Wawa sign a lease to open a new store they are committing to pay rent at that location for at least 15 years!

Joe Caputo and Bob Moorhead are the founders of Secure Net Lease. We have worked together since 2011, and collectively have over 40 years of commercial real estate experience. In total, Secure Net Lease agents have completed over $6 Billion net leased sale transactions, in 48 states. Our offices are in Dallas and Los Angeles.