You are here
JERICHO, N.Y. -- Getty Realty Corp. purchased 41 properties comprised of convenience stores and gas stations in Massachusetts and Rhode Island. The total value of the transactions was approximately $13 million.
At the time of sale 40 of the locations were leased by Getty Realty and subleased to Getty Petroleum Marketing Inc. under a master lease through at least 2015.
Leo Liebowitz, president and CEO of Getty Realty, said the company had been leasing the units for the past 12 years. "This acquisition will reduce our rent expense and increase our adjusted funds from operations for the current year by $877,000 or by $1.3 million on an annual basis," he said. "In subsequent years additional savings will be realized as a result of this acquisition due to the elimination of scheduled rent escalations.
As part of the deal, Getty Petroleum Marketing agreed to indemnify Getty Realty for historical environmental costs. As a result, Getty Realty's exposure to environmental remediation expenses should not change as a result of the acquisition. "This purchase reinforces our commitment to profitable growth with minimal risk through acquisitions," Liebowitz said.
Getty Realty Corp. is a real estate investment trust specializing in convenience stores, service stations and petroleum marketing terminals. The company owns and leases approximately 1,100 properties.