Monday, April 8, 2013
Getty Realty Selling Next Round
Firm puts more than 100 sites up for sale to "optimize" portfolio
Source: CSP Daily NewsBy Angel Abcede, Senior Editor/Content Development Coordinator
JERICHO, N.Y. -- With an eye on growth, Getty Realty Corp., has identified 108 more gas stations and properties to sell in the wake of the December 2011 bankruptcy of Getty Petroleum Marketing Inc. (GPMI), a separate firm that owned and operated about 800 units and properties.
Upon bankruptcy, the assets fell back to the landlord, Getty Realty.
In a decision to "optimize" its portfolio, the company decided to redraw long-term leases on 440 of the sites and properties, opting to sell the rest. The current grouping represents the second of three such sales, with this set having 40 gas stations and 68 commercial and retail properties, officials said.
"These are valuable properties--we have people offering $1 million for some--they're just not necessarily right for us as a public company. These are solid properties that unfortunately do not fit our growth profile," David Driscoll, president and CEO of Jericho, N.Y.-based Getty Realty, told CSP Daily News.
Driscoll noted that many of the properties most likely are at or above the $300,000 range, opening up an opportunity for a broader range of buyers. In the past, new owners have used these properties for businesses ranging from laundries to a veterinary office, he said.
Having gone public in 1971, the company spun off Getty Petroleum Marketing in 1997. Russia's largest integrated oil company, Moscow-based Lukoil, ended up purchasing Getty Petroleum but sold it to a holding company in the beginning of 2011.
As reported in a Raymond James/CSP Daily News Flash on Monday, Getty retained Chicago-based NRC Realty & Capital AdvisorsLLC (NRC) to coordinate the divestiture, with the stations and properties being located in Connecticut (4), Delaware (2), Illinois (1), Maryland (1), Massachusetts (16), New Hampshire (1), New Jersey (21), New York (40), North Carolina (3), Pennsylvania (14), Rhode Island (4) and Vermont (1). Many of the sites are currently being operated by licensees under month-to-month license agreements.
The 40 stations are located in a variety of urban and suburban markets in nine states. All are fee owned properties and the sale includes the improvements on the underlying real estate, except for certain sites with respect to which the underground storage tanks will be removed prior to closing. The properties are being sold without gas brand or fuel supply.
Most of the 68 commercial and retail prop