CST Embarking on 100 Site Sell-Off in Nine States
Locations pegged for sale in streamlining mostly in Texas, Colorado, Arizona
SAN ANTONIO -- Following through on its announcement last month that it had identified 100 convenience stores as candidates for pruning to "optimize" its network of approximately 1,900 locations, CST Brands Inc. said that it is selling 100 gas stations and convenience stores in nine states. It is also selling 16 former stations and one parcel of land.
"We are streamlining our operations in order to focus on our core business strategy to build larger format stores that can offer a wider array of enhanced product offerings," said Steve Motz, senior vice president and chief development officer at CST Brands, parent company of Corner Store. "The sale of these smaller stores are a tremendous opportunity for the right buyer as they will be a critical part of our growing U.S. wholesale business."
Most of these sites have the potential to be added to that wholesale network, CST Brands said.
As reported in a 21st Century Smoke/CSP Daily News Flash, the sale includes 61 locations in Texas, 22 in Colorado, 14 in Arizona, seven in California, four in both Arkansas and Louisiana, three in New Mexico, one in Utah and one in Wyoming.
Of the 61 Texas sites, 30 are in the Dallas-Fort Worth area, 11 are in the Lubbock area, seven are in the Houston area, five are in the El Paso area, and the remaining eight are in surrounding areas.
In Arizona, nine are located in the Phoenix area, four are in Tucson and one is in Prescott Valley. In Colorado, nine are located in and around Denver, five are in Colorado Springs and the surrounding area, four are in Fort Collins with the remainder located in surrounding areas.
The company is offering the sites, whether opened or closed, as c-stores with gasoline supplied by CST Brands, or without fuel supply. Of the 16 former gas stations, it is selling four without tanks and deed restricted for the sale of petroleum.
The locations each average more than 3,000 gallons of fuel sold per store, per day, which makes them attractive locations for sale and good dealer candidates for CST's wholesale business.
CST Brands has retained Chicago-based NRC Realty & Capital Advisors LLC, and the properties will be sold using NRC's "buy one, some or all" sealed-bid sale process. A complete list of the properties and information regarding submitting offers is available online atwww.nrc.com/1406. Property Specific Packages (due diligence packages) are expected to be available in mid-May, with a bid deadline of June 17, 2014.
NRC provides a full array of 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.
CST Brands is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, it has approximately 1,900 locations throughout the Southwestern United States and Eastern Canada offering a variety of convenience merchandise, beverages, snacks and fresh food. In the United States, CST Corner Stores sell Valero fuels and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Depanneur du Coin and Corner Stores sell signature Transit Cafe coffee and pastries.