Circle K

Interested in selling your Circle K or Circle K lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Circle K NNN property for sale or Circle K ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Circle K NNN property or the inclusion of a Circle K ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Circle K properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Circle K has a presence across 20 countries and territories, boasting a network of over 10,500 stores globally. Within this count, approximately 2,800 stores are in the United States and Canada.

Revenue and income

Circle K recorded a total revenue of $85.6 billion in 2022. The company’s net income for the same period amounted to $1.9 billion.

Future plans

Circle K is steadfast in its commitment to worldwide expansion. As part of its strategic vision for 2023, the company aims to inaugurate more than 5,000 new stores on an international scale. In parallel, Circle K is channeling investments into cutting-edge technologies like automated checkout systems and advanced mobile ordering platforms.

Corporate vs. franchise

Approximately 60% of Circle K stores operate franchises, while the remaining 40% are owned by corporate. Prospective franchisees typically bear a franchise fee ranging from $12,000 to $30,000, coupled with a royalty fee of 4% of gross sales.

Additional information Circle K Properties

Circle K traces its origins back to 1951 in El Paso, Texas. The brand’s nomenclature reflects its founding principle of offering convenience around the clock, 365 days a year. In the realm of convenience store chains, Circle K ranks among the largest globally. Among the array of items they offer, Circle K’s signature products encompass Froster drinks, Polar Pops, and their signature roller grill snacks. Circle K is a subsidiary of Alimentation Couche-Tard Inc., a prominent Canadian convenience store operator, and fuel retailer.

Circle K History

Circle K’s origins trace back to 1951 when Fred Hervey opened the first convenience store in El Paso, Texas. The concept gained traction, and Circle K was officially established. The brand’s name symbolizes the idea of a full circle of convenience, catering to customers’ needs around the clock. Over time, Circle K expanded its footprint nationally and internationally, becoming a prominent player in the convenience store industry. Innovative offerings like Polar Pops and Froster drinks became synonymous with the brand. The company continued to evolve, introducing modern technologies and services to enhance the customer experience.

Why Invest in Ground Lease and NNN Lease of Circle K?

Investing in Circle K’s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Circle K NNN Property Investment: Stable income

Benefit from steady cash flows with Circle K’s established market presence and reputation. Ground and NNN leases offer stability in income over the long term.

2) Circle K NNN Property Investment: Established tenant

Circle K’s strong brand recognition and success contribute to a reduced lease default or vacancy risk, ensuring a reliable tenant for your property.

3) Circle K NNN Property Investment: Low management responsibility

With ground and NNN leases, the property maintenance and expenses responsibility rests with the tenant, minimizing the landlord’s management duties.

4) Circle K NNN Property Investment: Favorable lease terms

Long lease durations with rent escalations built in can provide consistent income and the potential for rental growth

5) Circle K NNN Property Investment: Real estate value

Strategic placement of Circle K stores in high-traffic areas can enhance property value, offering the potential for appreciation.

Pros and Cons of Circle K Ground Lease and NNN Lease Investment

Pros:

1. Stable income from an established brand.
2. Reduced vacancy and lease default risks due to Circle K’s success and brand recognition.
3. Landlord’s management responsibilities are minimized.
4. Long lease terms contribute to stability and potential income increase.
5. Potential for property value appreciation in prime locations.

Cons:

1. Lease renewal uncertainty upon term expiration.
2. Exposure to Circle K’s operational challenges and success.
3. Market competition and saturation impact profitability.
4. Limited control over property decisions.
5. Inherent real estate investment risks related to the economy and market fluctuations.

Perform comprehensive research and consider location, lease terms, tenant strength, and investment strategy. Consulting real estate professionals and financial advisors is crucial to aligning your investment with your goals and risk tolerance.