JERICHO, N.Y. -- In its first portfolio acquisition since 2011, Getty Realty Corp. has acquired 36 properties located in the metropolitan New York and Washington, D.C., Beltway regions for approximately $72.5 million in two sale/leaseback transactions with Capitol Petroleum Group LLC.
Getty Realty repositioned its portfolio of properties previously leased to Getty Petroleum Marketing Inc. when GPMI ran into financial troubles and filed for bankruptcy protection in Dec. 2011. Getty said in Dec. 2012 that it had successfully leased 443 properties on a long-term triple-net basis with eight different tenants.
As reported in a Raymond James/CSP Daily News Flash on Monday, the new acquisition includes 16 Mobil branded properties in metro New York, and 13 Exxon-branded and seven Shell-branded properties within the Washington, D.C., Beltway. All of the locations included in the acquisition are high-volume locations that serve high-density population centers.
David B. Driscoll, Getty's president and CEO, said, "We are excited to complete our first portfolio acquisition since 2011. Building on our increased stability and utilizing our strengthened financial position, we completed the acquisition of 36 high-quality Exxon/Mobil and Shell properties in highly desirable metro New York and Washington, D.C., Beltway markets."
He added, "We are also pleased to expand our relationship with Capitol, a long-term tenant, which has a proven history of delivering reliable performance. With the accretive addition of these properties and the ongoing repositioning of our legacy portfolio, we believe that Getty has fortified its ability to generate additional cash flow for shareholders in the coming years."
Getty acquired the 36 properties and simultaneously leased them back to subsidiaries of Capitol Petroleum in two sale/leaseback transactions under long-term triple-net unitary leases having initial terms of 15 years plus three renewal options.
The company expects to receive approximately $6.1 million of annualized revenue from the investment, it said. In addition, the acquisition used a significant amount of accumulated proceeds from the company's prior property dispositions through 1031 exchanges enabling the company to defer taxable gains on many of its 2013 property dispositions, it said.
Getty Realty is a leading publicly traded U.S. real-estate investment trust (REIT) specializing in ownership, leasing and financing of convenience store and gas station properties. The Jericho, N.Y.-based company owns and leases approximately 1,050 properties nationwide.
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