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JERICHO, N.Y. -- Getty Realty Corp. served its largest tenant, Getty Petroleum Marketing Inc. (GPMI), with a formal notice of eviction and termination of their master lease due to alleged non-payment of the latter's November rent.
Getty Realty owns and leases about 1,555 properties nationwide. GPMI is the lessee of many of those locations. Because of the alleged non-payment of rent that was due on Nov. 1, Getty Realty announced in a news release this morning that it is seeking to take possession of all the properties GPMI leases.
Once it takes control of the GPMI-run properties, Getty Realty intends to reposition its portfolio in order to "maximize its long-term value." The repositioning may result in long-term leases on sub-groups of properties with multiple distributors or suppliers, individual leases with existing or new dealers or the sale of locations, Getty Realty said in the statement.
The real estate investment trust noted that it will need to absorb "significant costs" associated with legal proceedings against GPMI. There is no word yet about an exact date GPMI operators would need to vacate their respective premises.
This latest news is certainly not the first disagreement between the two parties. As CSNews Online has chronicled in several different stories, Getty Realty first alleged GPMI did not pay its August rent as of Aug. 8. At the time, Getty Realty said it expected GPMI not to pay its August rent at all due to its "distressed financial position."
Despite those words, GPMI did make its August rent payment on Aug. 24.
GPMI struck back on Sept. 23, alleging that Getty Realty failed to "perform certain environmental remediation." GPMI said it would offset the costs for such remediation against its October and November rent payments. Getty Realty countered by saying the claim was "without merit" and it was in compliance with all environmental obligations.
On Nov. 1, Getty Realty said it had reserved $11 million to counteract litigation put forth by GMPI. And most recently, on Nov. 9, Getty Realty wrote in a 10-Q filing to the U.S. Securities and Exchange Commission that its relationship with GPMI "has deteriorated over the past several months."