LAS VEGAS -- "As I exit the c-store business to devote more of my energies into other development opportunities, I'm pleased to place my company in such capable hands," City Stop president Bruce Familian--an entrepreneur with more than 30 years of experience developing real estate in Nevada and California--said upon the announcement of the sale of City Stop's 11 convenience stores to S&S Fuels LLC of Littleton, Colo.
Preet S. Puri, managing member and principal owner of S&S Fuels, said he believes the acquisition will be a great addition to his business. "City Stop is a first-class operation in all respects--prime real estate, fantastic stores, solid financials and a skilled and devoted management team and employees from the store level on up, all of whom we hope to retain. We're delighted to be entering the Las Vegas market with such a strategically placed and strong portfolio," Puri said.
"S&S will be able to take [the stores] to the next level; something we weren't able to do," Familian told CSP Daily News. "That's what they bring to the table."
He and Athey will stay on in a couple of capacities. Familian said he will be the point person for S&S in Las Vegas, helping the company grow in that market. Then he and Athey will continue supplying the gaming portion of the chain's business. Familian said he and Athey developed a gaming-supply company to which they intend to devote more of their energies going forward.
The City Stop deal was "exceptional" because of Familian and his background as a real-estate developer, Dennis Ruben, executive managing director of NRC Realty & Capital Advisors LLC, told CSP Daily News. "These were high-end, dynamic properties in prime locations in [growing] residential areas," Ruben said. "There was strong interest, and if [S&S] didn't do the deal, there were others in the ring."
NRC served as the exclusive financial advisor to City Stop during the private placement sale.
Pointing to Familian's instincts as a developer, Ruben said Familian understood the value of land. Familian said he knew "where you needed to be to grow in the Las Vegas market."
Familian said he would lock up five-to-10-acre lots and develop the property, using the c-store as the center.
Moving forward, Familian said that despite the economy in Las Vegas, the market still has developing "master plan" communities where new potential lies, but a greater focus will probably be on acquisition and buying viable, existing properties.
City Stop offers a "one-stop-shopping" concept, providing customers with multiple services such as gasoline, car washes, groceries, gaming and U.S. Postal Service units. Key to this concept is co-branding with national quick-service restaurant brands such as Jack-in-the-Box and Domino's Pizza.
The chain, founded in 1997, is the vision of co-founders Bruce Familian and Jon Athey, whose mission was to be the most convenient chain of stores in the Las Vegas valley. All of the locations are situated on high visibility corner lots along high-traffic corridors and cross streets, with proximity to major highways and thoroughfares. With an average building size of 3,500 square feet situated on an average lot size of approximately 1.25 acres, the chain boasts a larger operational footprint than the national average for c-store size.
As reported in a Morgan Keegan/CSP Daily News Flash yesterday, S& S Fuels has acquired all of the assets of City Stop Inc. and its affiliates in the metropolitan Las Vegas market.
The sale of all 11 sites and all other company assets included the underlying real estate for nine of the stores and leasehold interests for the remaining two. Gasoline at all stations will be rebranded Sinclair. S&S has also arranged to rebrand the c-stores to 7-Eleven.
Chicago-based NRC offers real-estate and financial advisory services to the c-store and petroleum industries, and specializes in the accelerated sale of commercial and residential real estate. Its experience includes portfolio evaluation and analysis; refinancing, recapitalization and sale-leaseback financing options; and merger and acquisition advisory services. Since its inception in 1989, NRC has sold more than 10,000 properties. Clients include globally recognized companies in a variety of industries, including petroleum (BP, Shell and Sunoco), c-stores (The Pantry and Circle K) and more.
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