JERICHO, N.Y. -- With an eye on growth, Getty Realty Corp., has identified 108 more gas stations and properties to sell in the wake of the December 2011 bankruptcy of Getty Petroleum Marketing Inc. (GPMI), a separate firm that owned and operated about 800 units and properties.
Upon bankruptcy, the assets fell back to the landlord, Getty Realty.
In a decision to "optimize" its portfolio, the company decided to redraw long-term leases on 440 of the sites and properties, opting to sell the rest. The current grouping represents the second of three such sales, with this set having 40 gas stations and 68 commercial and retail properties, officials said.
"These are valuable properties--we have people offering $1 million for some--they're just not necessarily right for us as a public company. These are solid properties that unfortunately do not fit our growth profile," David Driscoll, president and CEO of Jericho, N.Y.-based Getty Realty, told CSP Daily News.
Driscoll noted that many of the properties most likely are at or above the $300,000 range, opening up an opportunity for a broader range of buyers. In the past, new owners have used these properties for businesses ranging from laundries to a veterinary office, he said.
Having gone public in 1971, the company spun off Getty Petroleum Marketing in 1997. Russia's largest integrated oil company, Moscow-based Lukoil, ended up purchasing Getty Petroleum but sold it to a holding company in the beginning of 2011.
As reported in a Raymond James/CSP Daily News Flash on Monday, Getty retained Chicago-based NRC Realty & Capital AdvisorsLLC (NRC) to coordinate the divestiture, with the stations and properties being located in Connecticut (4), Delaware (2), Illinois (1), Maryland (1), Massachusetts (16), New Hampshire (1), New Jersey (21), New York (40), North Carolina (3), Pennsylvania (14), Rhode Island (4) and Vermont (1). Many of the sites are currently being operated by licensees under month-to-month license agreements.
The 40 stations are located in a variety of urban and suburban markets in nine states. All are fee owned properties and the sale includes the improvements on the underlying real estate, except for certain sites with respect to which the underground storage tanks will be removed prior to closing. The properties are being sold without gas brand or fuel supply.
Most of the 68 commercial and retail properties are improved with operating or closed stations.
Original asking prices for the properties range from $75,000 to $1million; however, properties are being offered in the sealed-bid sale at minimum bids of up to 50% off the original asking prices. Getty will also consider leasing properties to qualified tenants.
The properties will be sold using NRC's "buy one, some or all" sealed-bid sale process.Due due diligence packages are expected to be available in May, with a bid deadline of July 10, 2013. Interested parties may view a complete site list and register online for sale updates at www.NRC.com/1304, or by calling the NRC Customer Service Center at (800) 747-3342, extension 1304.
"These sites are very attractive for a variety of gasoline, automotive, retail and commercial uses," said Evan Gladstone, NRC's executive managing director."The majority are located on high-traffic corners in mature neighborhoods and in small towns. Investors will also be interested in bidding on many of the locations which have license agreements with operators."
NRC will be coordinating property viewings on sites without tenants on scheduled viewing dates, currently anticipated for May. It will list dates and times on the NRC website. Sites with licensees are open during normal business hours, and prospective bidders may view these sites as long as they do not disturb the users. Broker cooperation is encouraged, and a 3% broker co-op commission is being offered.
NRC provides real-estate and financial advisory services to the convenience store and petroleum industries and specializes in the accelerated sale of commercial and residential real estate. NRC's experience in the c-store arena includes portfolio evaluation and analysis; refinancing, recapitalization andsale-leaseback financing options; and merger and acquisition advisory services. Since its inception in 1989, NRC has sold more than 15,000 properties.
Getty Realty is apublicly-traded real estate investment trust,specializing in ownership, leasing and financing of c-stores, gas stations and petroleum distribution terminals. It owns and leases approximately 1,050 properties nationwide.
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