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Tuesday, April 15, 2014

Details Released on CST Brands' 100-Store Sale

Source: Convenience Store News

SAN ANTONIO -- CST Brands Inc. CEO Kim Bowers revealed last month that the company had identified 100 underperforming U.S. Corner Store locations for sale. Today, NRC Realty & Capital Advisors LLC, the firm retained by CST to coordinate the sale, released details on the sites up for grabs.

San Antonio-based CST is selling off 100 gas stations and/or convenience stores, 16 former gas stations and one land parcel. The portfolio includes 61 locations in Texas, 22 in Colorado, 14 in Arizona, seven in California, four in both Arkansas and Louisiana, three in New Mexico, and one in both Utah and Wyoming.

Of the 61 Texas sites, 30 are located in the Dallas-Fort Worth area, 11 are in the Lubbock area, seven are in the Houston area, five are in the El Paso area, and the remaining eight are in surrounding areas.

In Colorado, nine of the 22 sites are located in and around Denver, five are in Colorado Springs and the surrounding area, four are in Fort Collins, with the remainder located in surrounding areas.

In Arizona, nine sites are located in the Phoenix area, four are in Tucson and one is in Prescott Valley.

Sites sold as convenience stores with gas, whether operating or closed, will be offered for sale with fuel supply -- which will be provided by CST -- or without fuel supply. Of the 16 former gas stations, four will be sold without tanks and deed-restricted for the sale of petroleum.

In its initial announcement in early March, CST noted that the majority of these sites could potentially be added to the company's growing wholesale distribution business in the United States. Each location averages more than 3,000 gallons of fuel sold per store per day, which makes them attractive locations for sale and good dealer candidates for CST's wholesale business.

"We are streamlining our operations in order to focus on our core business strategy to build larger format stores that can offer a wider array of enhanced product offerings," said Steve Motz, senior vice president and chief development officer at CST, parent of Corner Store. "The sale of these smaller stores is a tremendous opportunity for the right buyer as they will be a critical part of our growing U.S. wholesale business."

The properties will be sold using NRC's well-known "buy one, some or all" sealed-bid sale process