Getty Realty Closed $57M in Acquisition Deals in First Quarter

JERICHO, N.Y. — Getty Realty Corp.'s strategy of acquiring high-quality, well-located properties continued in the first three months of 2020 as the real estate investment trust (REIT) added 12 properties to its portfolio.

Getty acquired the dozen properties for a total of $57 million, CEO Christopher Constant reported during the company's first-quarter 2020 earnings call, held May 6. When combined with the fourth quarter of 2019, the REIT invested more than $100 million in a six-month period.

Among its first-quarter activity, Getty acquired 10 properties in an acquisition leaseback transaction with Go Car Wash. The properties acquired, which are in the greater Kansas City area, are subject to a unitary triple net lease with a 15-year base term and multiple renewal options, noted Mark Olear, Getty's chief operations officer.

The REIT also purchased two car wash properties from Zips Car Wash for $7 million. The properties, one each in Virginia and Kentucky, are subject to 15-year triple net leases.

"We remain highly committed to growing our portfolio in the convenience and gas sector, as well as our newer categories including car washes and automotive service centers," Olear explained.

The executive, however, acknowledged that the COVID-19 pandemic is currently impacting the overall transaction market on various levels. "Accordingly, we believe many of the acquisition opportunities in our pipeline will be delayed," he said. 

Redevelopment Effort 

Getty completed two redevelopment properties in the first quarter, bringing its total of completed projects to 15 since the inception of its redevelopment effort, Constant reported during the earnings call. 

It returned two redeveloped properties to its net-lease portfolio — one leased to a Wendy's quick-service restaurant in The Bronx, N.Y., and the other leased to AutoZone in Philadelphia.

In terms of redevelopment leasing, Getty ended the quarter with 11 signed leases or letters of intent, including: four active projects; six signed leases on properties that are currently subject to triple net leases, but have not yet been recaptured from the current tenants; and one signed letter of intent for a vacant property.

"All these projects are continuing to advance through the redevelopment process. Again, I note that due to the impact of the COVID-19 pandemic, we are seeing some delays in certain ... projects as contractors, suppliers and municipalities deal with the shutdown orders, social-distance requirements, and other impediments to normal function," Olear stated.

Jericho-based Getty Realty specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of March 31, the company owned 885 properties and leased 62 properties from third-party landlords in 35 states and Washington, D.C.