Getty Realty Acquires 36 Properties for $72.5 Million
JERICHO, N.Y. -- Getty Realty Corp. acquired 36 convenience stores and gas stations in the New York and Washington D.C. metropolitan areas for $72.5 million.
The acquisitions involve sale-leaseback transactions with Capitol Petroleum Group LLC and include 16 Mobil-branded properties in metropolitan New York, as well as 13 Exxon- and seven Shell-branded locations in the Washington D.C. area.
"We are excited to complete our first portfolio acquisition since 2011," said David B. Driscoll, president and CEO of Getty Realty. "Building on our increased stability and utilizing our strengthened financial position, we completed the acquisition of 36 high-quality Exxon, Mobil and Shell properties in [the] highly desirable metro New York and Washington, D.C., Beltway markets. We are also pleased to expand our relationship with Capitol, a long-term tenant that has a proven history of delivering reliable performance."
The 36 properties Getty Realty acquired are being leased back to Capitol Petroleum in two sale-leaseback, triple-net leases with terms of 15 years plus three renewal options. The real estate investment trust expects to receive approximately $6.1 million annually from the investment.
"With the accretive addition of these properties and the ongoing repositioning of our legacy portfolio, we believe that Getty has fortified its ability to generate additional cash flow for shareholders in the coming years," added Driscoll.
As CSNews Online previously reported, Driscoll recently said the company was actively seeking acquisitions with price tags ranging from $4 million to $5 million on the low side, to more than $50 million on the upper end.
"We are reigniting growth efforts," the CEO stated during Getty Realty's 2013 fiscal first-quarter earnings call on May 3. "But there are not many large portfolios available right now. In addition, we have plenty of competitors…So, we need to be more creative."
Jericho, N.Y.-based Getty Realty Corp. owns and leases approximately 1,050 convenience stores and gas stations nationwide.