WEST DES MOINES, Iowa -- Hurd Real Estate Services Inc. has announced that it has acquired seven Hy-Vee grocery stores and five convenience stores located in three states for $82.35 million in its largest sale-leaseback transaction to date.
The deal increases Hurd Real Estate’s Hy-Vee portfolio to 13 grocery stores and 10 convenience stores in five states.
Hurd Real Estate, a development and investment firm based in West Des Moines, Iowa, owns and manages a portfolio of more than 100 income-producing commercial properties located in 10 states throughout the Midwest and Southwest.
“We are pleased to work with Hy-Vee to acquire these properties located in multiple markets,” said Richard Hurd, president of Hurd Real Estate. “As an Iowa-based company with 35 years of experience with this type of transaction, Hurd was uniquely qualified to act quickly and efficiently to complete this deal. The agreement allows Hy-Vee to monetize its real-estate assets while expanding our portfolio with a well-respected company that offers a valuable service to the communities it serves.”
Hurd Real Estate has worked on sale-leaseback agreements for more than 35 years with several national and regional companies. These transactions have become a common way for companies to increase financial flexibility while still giving the seller operational control of their facilities, Hurd said.
Other convenience-store industry sale-leaseback clients in the company’s portfolio include Circle K, Kum & Go and QuikTrip, as well as Walgreens. It also has several fast-casual and quick-service restaurant (QSR) chains and financial institutions in its sale-leaseback portfolio.
Hy-Vee Inc., also based in West Des Moines, is an employee-owned corporation operating 240 grocery and convenience stores across eight Midwestern states with sales of $9.3 billion annually. It operates more than 125 Hy-Vee Gas c-stores with fuel in the parking lots of its grocery stores.
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