Getty Realty Completes 49-Store Acquisition Leaseback
JERICO, N.Y. — Getty Realty Corp. has completed the 49-store acquisition leaseback transaction with Empire Petroleum Partners LLC.
Through a subsidiary, Getty acquired fee-simple interests in 49 convenience store and gasoline station properties for $123 million. The properties are located primarily within metropolitan markets in Arizona, Colorado, Florida, Georgia, Louisiana, New Mexico and Texas.
Getty simultaneously leased these properties to Empire under a unitary lease, which provides an initial term of 15 years, with four, five-year renewal options. Rent is scheduled to increase annually during the initial and renewal terms of the lease, according to Getty.
“We are delighted to have closed this accretive transaction and to add 49 high-quality properties to our convenience store and gasoline station net lease portfolio. In addition, we are excited to begin a long-term partnership with Empire, a strong national fuel distributor and convenience store operator,” stated Getty President and CEO Christopher J. Constant.
“This transaction demonstrates our ability to execute on our strategy of growing our portfolio in targeted markets in the United States,” he added.
The company expects its transaction with Empire to be immediately accretive to net earnings. The transaction was funded through a combination of funds from its $104 million follow-on equity offering, which closed in July 2017 and funds available under its Credit Agreement.
Getty entered into a definitive agreement for the acquisition leaseback in June. The deal was in conjunction with Dallas-based Empire’s pending deal to acquire 70 locations from Laval, Quebec-based Alimentation Couche-Tard, who had been directed by the Federal Trade Commission to sell properties as part of its acquisition of San Antonio-based CST Brands Inc., as CSNews Online previously reported.
Jericho-based Getty Realty is a publicly traded real estate investment trust specializing in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, the company owned 739 properties and leased 86 properties from third-party landlords in 25 states across the U.S. and Washington, D.C.