As reported in a Morgan Keegan/CSP Daily News Flash on Friday, the 59 properties were acquired in a simultaneous transaction among ExxonMobil, CPD NY Energy Corp. (a subsidiary of Chestnut [image-nocss] Petroleum Distributors) and Getty Realty Corp. whereby CPD acquired a portfolio of 65 stations and c-stores from ExxonMobil and simultaneously completed a sale/leaseback of substantially all of the acquired properties with Getty Realty Corp.
Approximately 85% of the funding was provided by Getty via a sale/leaseback transaction with a long-term triple net unitary lease having an initial term of 15 years plus renewal options. Additional funding was provided by Getty to CPD under a secured, self-amortizing loan having a 10-year term.
The properties acquired by Getty are high-volume locations with strong operating histories. The properties will continue to sell gasoline under the Mobil brand and will be operated by CPD or by the existing independent dealers who will be supplied fuel by CPD.
David Driscoll, CEO of Getty Realty, said, "We are pleased to have been able to finance the acquisition of these excellent properties for CPD. The sites have secure and steadily growing operating histories and are located in strong markets with excellent long-term demographics. We are equally pleased to have begun a relationship with CPD, a respected and growing regional gas station and convenience marketer, and look forward to continue to grow with them. This acquisition is an example of our efforts to seek growth through quality acquisitions. We expect this acquisition to be immediately accretive to annual earnings."
In September 2010, CPD Energy Corp. has purchased ExxonMobil property assets and supply interests in 83 Mobil station properties in Westchester County, along with the downstate Hudson Valley areas of New York. (Click here for previous CSP Daily News coverage.)
Simultaneously to the CPD closing, Polar Bear Trucking Inc., Middletown, N.Y., bought the eight-unit ExxonMobil fleet from the Newburgh, N.Y., terminal for an undisclosed price, the company told CSP Daily News. Polar Bear has been buying up various equipment from other ExxonMobil New England terminals. It now has 20 trucks serving the Albany, N.Y., Newburgh, N.Y., and northern New Jersey terminals.
New Paltz, N.Y.-based CPD, which has been distributing gasoline products since 1981, represents the Shell, Mobil, Gulf and Sunoco brands. It has an active role in more than 250 facilities across the region in the states of New York, Connecticut, New Jersey and Pennsylvania.
Jericho, N.Y.-based Getty Realty is the largest publicly-traded real-estate investment trust (REIT) in the United States specializing in ownership and leasing of c-store/gas station properties and petroleum distribution terminals. The company owns and leases approximately 1,110 properties nationwide.
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