Getty Realty Corp. announced today that it has acquired fee simple interests in 77 convenience store and retail motor fuel stations located in several high growth regions including Northern California, Southern California, Colorado, Washington, Nevada and Oregon for approximately $214 million. The acquired properties operate under several well recognized brands including 76, Conoco, Circle K, 7-11 and My Goods Market.
David B. Driscoll, Getty’s President and CEO, stated, “This acquisition is immediately accretive to AFFO, FFO and earnings. It also achieves several important objectives for our Company including: materially expanding our geographic reach primarily in high growth regions and adding a new institutional quality tenant. We believe the addition of these properties, combined with other activity in our portfolio, has materially improved the overall credit quality of our revenue stream. In addition, we believe we are positioned to provide sustained cash flow growth for shareholders in the coming years.”
The 77 properties were acquired from affiliates of Pacific Convenience and Fuels LLC and simultaneously leased to United Oil, a leading regional convenience store and gas station operator. United Oil is triple-net leasing the 77 properties acquired by Getty for an initial term of 20 years, with three five-year renewal options. The Company expects to receive approximately $16.7 million of annual GAAP revenue from the transaction.
United Oil operates approximately 400 locations (inclusive of the current transaction) in the Western United States and Colorado and is a portfolio company of Fortress Investment Group LLC.
