HONOLULU -- Getty Realty Corp. has acquired 11 Aloha Petroleum gas stations in Hawaii and a limited leasehold interest in seven other Aloha stations from GE Capital Solutions.
The deal, which closed Friday and was announced Monday, was part of an overall $78 million Getty transaction involving 59 convenience store and station properties in nine states.
According to the report in the Honolulu Star-Bulletin, all of the Aloha stations involved in the transaction previously were purchased by Aloha from Mahalo in October 2005. Most [image-nocss] of the stations were rebranded Aloha, although the Mahalo name still exists. Overall, Aloha operates about 80 stations in the state.
Jericho, N.Y.-based Getty Realty said it expects to acquire additional properties from Scottsdale, Ariz.-based GE Capital in the next 30 days under a previously announced 68-property transaction announced in mid-February. The Aloha Petroleum properties and others that were acquired previously were owned by Trustreet Properties Inc., but Trustreet was purchased by GE Capital at the end of February.
The fee-simple Aloha properties acquired by Getty Realty are under a long-term lease and still will be operated by Aloha, Getty Realty spokesperson Kevin Shea said. The motoring public will see no change, he told the newspaper. Aloha will continue to operate them as they see fit.
Shea said Getty Realty will have a very, very, very limited leasehold interest in the other seven Aloha properties. He said Getty did not break out the value of the Hawaii purchase because of an agreement it had with the seller. We purchased these properties pursuant to an existing lease to Aloha, Shea said. The lease remains in full force and our relationship with Aloha is that of a landlord tenant. We're a real estate investment trust. We don't operate gas stations; we just invest in the properties.
Concerning the overall deal, Leo Liebowitz, Getty Realty's chairman and CEO, said, This acquisition transaction is consistent with our continuing focus on profitable growth through acquisitions of quality properties throughout the United States, and will add important tenant and geographic diversity to our portfolio.
Last week, Getty Realty announced that it had amended and restated its definitive senior unsecured revolving credit facility with JPMorgan Chase Bank NA, which acted as administrative agent for a group of domestic commercial banks. This increased credit facility will permit us to continue our focus on profitable growth through acquisitions of quality properties throughout the United States, Liebowitz said.
Getty Realty is the largest publicly traded real estate investment trust (REIT) in the United States specializing in the ownership and leasing of c-store/gas station properties and petroleum distribution terminals. It owns and leases more than 1,100 properties throughout the United States. In 1997, it spun off its petroleum marketing business to shareholders as a separate New York Stock Exchange (NYSE)-listed company, Getty Petroleum Marketing Inc., which was acquired in 2000 by a subsidiary of OAO Lukoil, one of Russia's largest integrated oil companies. Getty Realty leases approximately 90% of its properties to Getty Petroleum Marketing on a long-term net basis. The other properties are leased to individual operators and petroleum distributors.
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