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JERICHO, N.Y. -- Getty Realty Corp. will immediately repossess the entire portfolio -- sans one property -- of locations it had leased to Getty Petroleum Marketing Inc. (GPMI). Hence, the real estate investment trust will repossess 788 properties, mostly located in the Northeastern United States.
According to Getty Realty, its move follows the U.S. Bankruptcy Court of the Southern District of New York's declaration that a master lease between it and GPMI was void, effective April 30.
"We are pleased to be able to regain full control of this portfolio in accordance with our expectations and the public statements we made in March," said David B. Driscoll, Getty Realty's president and CEO. "It is our intention to continue the repositioning process that we started at the beginning of the year. While we understand it will take time to complete, the pace is already accelerating, evidenced by interim supply arrangements and new long-term triple-net leases with distributors, along with our ongoing process of selling non-core assets. Certainly, there is much work that still needs to be done, but our team is committed to substantially completing this process in the coming quarters."
To further expand on Driscoll's comments, Getty Realty announced it has entered into long-term triple-net leases with 282 locations with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sam's Food Stores, as well as adding properties to an existing lease with MWS Enterprises. The properties are located in New England, Southern New Jersey, Pennsylvania and the Buffalo, N.Y., area.
In addition, Getty Realty said it sold five properties during the last two months for $1.5 million; entered into an interim fuel supply and services agreement with Global Partners LP to provide gasoline supply and certain oversight services regarding 254 locations in the New York City metropolitan area and New Jersey; and entered into a variety of other fuel supply, direct leases and licenses for the remaining properties, excluding properties being marketed for sale.
However, Getty Realty stated that in select locations, its new distributor tenants are "encountering reluctance by former subtenants (or sub-subtenants)" of GPMI. "As a result, Getty and its new distributor tenants may experience temporary disruptions in the collection of rent receipts from these locations," the real estate investment trust said in news release. "Getty intends to directly or, as to locations subject of new leases, together with its new distributor tenants, pursue the dispossession process to the fullest extent permitted by law."
GPMI declared bankruptcy on Dec. 5. The company had not issued a public response to Getty Realty's news release as of press time.
Getty Realty owns and leases approximately 1,145 properties.