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05/04/2021

GPM Enters $1B Partnership With Real Estate Investment Firm

Oak Street Real Estate Capital will purchase and lease to GPM the real estate associated with acquisitions.
Logos for Arko Corp and GPM Investments

RICHMOND, Va. — GPM Investments LLC is taking another step in its growth strategy.

The company reached an agreement with Oak Street Real Estate Capital LLC for the Chicago-based real estate investment firm to purchase and lease to GPM real estate associated with acquisitions of convenience store brands and gas stations.

Under the agreement, GPM would own and operate the related acquired businesses, and Oak Street would own the real estate and lease it to GPM.

Oak Street is committing up to $1 billion to the program for a one-year period.

Since 2011, GPM has executed 18 acquisitions, growing the company to almost 3,000 sites with more than 10,000 employees operating in 33 states and Washington, D.C. This agreement further demonstrates the company's continued commitment to aggressive growth.

"We believe that working with Oak Street will allow us to be a more attractive acquirer and add additional flexibility as we structure acquisitions," said Arie Kotler, president and CEO of GPM. "We remain highly focused on our core acquisition model, and we expect that this partnership will enhance certainty of deal execution and as a result, strengthen our growth as a company."

Richmond-based GPM is a wholly owned subsidiary of Arko Corp.

"Arko is a phenomenal company that is making the right strategic decisions," said Marc Zahr, CEO and managing partner of Oak Street. "Their ability to utilize our balance sheet to fund their real estate footprint allows them to focus on their accretive growth and core operations. We are excited about what our partnership can do for their business and to help fuel their continued success."