LOS ANGELES -- In a financial move involving 13 stores and two contributed sites, entrepreneur Eddie Abadi has created SB Holdings Inc. in a $41 million transaction that closed last month.
Adabi bought 13 stores from a Los Angeles-based businessman who preferred to remain anonymous, said Greg Landry, managing partner, Capital Insight LLC, the Scottsdale, Ariz.-based firm handling the transaction.
Both parties were long-term operators of convenience, car wash and petroleum assets in the Los Angeles metropolitan market, he told CSP Daily News, with a number of stores being franchised Circle K and selling 76 branded fuel.
The transaction took advantage of the inherent value of "prime parcels" of California real estate, according to Landry, and via sale-leaseback financing, SB was able to strengthen its borrowing position.
Abadi, now president and CEO of SB, said Capital Insight was "instrumental" in his ability to complete the purchase, assisting SB in the valuation process and developing the financing package that was ultimately approved.
"I am pleased that these lenders have expressed a renewed interest in the convenience-store industry," Landry said. "Mr. Abadi is the type of hands-on operator who has demonstrated his ability to bring additional upside to already performing assets. He is exactly what most lenders are looking for."
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