DALLAS -- In a move intended to prune the stores that don't more precisely fit its strategy from the portfolio of properties that it acquired as part of its acquisition of the 188-store Wilson Farms chain in 2011, 7-Eleven Inc. is selling 30 of the gas stations and convenience stores in upstate and western New York.
"In any acquisition of an entire chain, there will inevitably be some stores that don't fit with a buyer's long-term strategic plans," said Robbie Radant, 7-Eleven vice president of mergers and acquisitions. "Such is the case with these 30 properties. While not right for our current operations, we believe they will provide great opportunities for the right buyers, as they did for Wilson Farms over the years."
The Dallas-based retailer has been remodeling and converting most of the stores to the 7-Eleven brand.
(See Related Content below for previous CSP Daily News coverage of 7-Eleven's acquisition of Buffalo, N.Y.-based Wilson Farms.)
As reported in a Raymond James/CSP Daily News Flash on Friday, the properties are located in Albion, Avon, Batavia (2), Bath, Buffalo (2), Caledonia, Dundee, Elmira (3), Filmore, Fredonia, Great Bend, Hammonsport, Horseheads, Keeseville, Lake Placid, Le Roy, Niagara Falls, Potsdam, Rochester (3), Saranac Lake, Watertown (2), West Chazy and Wilmington.
The 30 locations stretch from Fredonia and Buffalo in the west, through Elmira and Watertown, to communities adjacent to Lake Champlain in the northeast. Six of the sites are convenience stores only (no fuel) and 24 are convenience stores with gasoline. All but one site is currently operating.
All of the sites are being sold without 7-Eleven branding. Fuel sites are currently branded Mobil (6), Sunoco (10) or unbranded (8). All fuel sites (except 4 commission marketer sites) are being offered for sale with or without fuel supply.
Lot sizes range from approximately 5,500 to nearly 81,000 square feet, while store sizes range from 1,100 to 3,500 square feet. With the exception of one fee property, these are all leasehold properties, with current leases mostly expiring in 2015. Nearly all have lease renewal options through 2020, and most have renewal options through 2030. Some locations may be offered with the fee real estate interest.
The company has retailed NRC Realty & Capital Advisors LLC to handle the sale.
"We think that this sale provides some great opportunities for others already operating in these geographic areas as well as for those looking to enter these markets," said Dennis Ruben, executive managing director of NRC. "We believe that this sale will draw interest from dealers, jobbers, chain marketers and even those from outside the industry."
The properties will be sold using NRC's "buy one, some or all" sealed-bid sale process. NRC said that it expects the sale to be formally launched on August 15, when additional details about all properties will be available on the NRC website and a brochure will be available for download; property-specific packages (PSP) will be available in early September, with a bid deadline of October 18. Visit www.NRC.com/1208 for more details.
Dallas-based 7-Eleven operates, franchises or licenses approximately 9,400 stores in North America. Globally, there are more than 47,300 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales of more than $76.6 billion.
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