NEW YORK – To raise money to pay obligations related to Getty Petroleum Marketing Inc. (GPMI), Cambridge Petroleum Corp. (CPC) has announced that it will sell off the leasehold rights, title and interest in seven gas stations (along with commission contracts with the existing lessees) and the fuel supply on one location.
The eight CPC sites are located in the Pennsylvania (1), New Jersey (2), Connecticut (1) and Rhode Island (4).
As reported in a 21st Century Smoke/CSP Daily News Flash, the total volume is approximately 4.7 million gallons with an annual income of $1.27 million before commissions paid and credit-card fees.
New York City-based CPC operates under the commission agent model for fuel sales at all eight locations. The seven sites that are leased to CPC are subleased to a commission agent that pays rent and receives a commission on every gallon of gas sold.
All of the CPC sites are former GPMI sites. CPC will use the proceeds of this sale to pay a settlement to the Getty Petroleum Liquidating Trust.
East Meadow, N.Y.-based gas-station operator GPMI declared bankruptcy in December 2011. GPMI previously leased approximately 800 stations from Getty Realty Corp., Jericho, N.Y., which terminated GPMI's leases in December 2011 when GPMI was unable to pay the rents, and Getty Realty re-leased the properties.
“The leasehold interest in these sites with the commission agents in place could be very valuable to some regional distributors. It gives them [more than] four million gallons with very high margins and no operating responsibilities,” said Phil Boyd, managing director of The Energy Exchange, which is coordinating the sealed-bid sale and has been named as the sales advisor for the bidding process.
The Energy Exchange, Chicago, is a company within Coldwell Banker Commercial NRT that specializes in the sale and leasing of convenience stores and gas stations nationwide.
CPC is a petroleum distribution company owned by Cambridge Petroleum Holding Inc.
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