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JERICHO, N.Y. -- Adding to its more than 1,000 holdings across the country, Getty Realty Corp. has acquired 59 convenience stores in and around the northern suburbs of New York City -- including Westchester and Rockland counties -- and the lower Hudson Valley. The locally headquartered real estate investment trust took ownership of the Mobil-branded properties for a total investment of $111.3 million.
The deal was a simultaneous transaction among ExxonMobil, CPD NY Energy Corp. and Getty Realty. Specifically, CPD acquired the 65-property portfolio (consisting of convenience stores and gas stations) from ExxonMobil and, at the same time, completed a sale/leaseback of almost all the properties with Getty Realty, the company explained in a release.
On the financing front, approximately 85 percent 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 company said.
Under the deal, the locations will continue to sell Mobil-branded gas and will be operated by CPD or by the existing independent dealers who will be supplied fuel by CPD.
"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," said David Driscoll, chief executive officer at Getty Realty. "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."
The $111.3-million transaction comes eight months after Getty Realty held a public stock offering in hopes of raising $94 million. At the time the company said it planned to use some of the funds for acquisitions, as CSNews Online previously reported.