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ALLENTOWN, Pa. — CrossAmerica Partners LP entered into an agreement with a leading institutional real estate investor for the sale and leaseback of 20 properties acquired as part of the State Oil acquisition. The deal is for net proceeds of approximately $29 million.
CrossAmerica acquired the State Oil assets on Sept. 27 for $41.8 million, which included a total of 56 fee properties and 60 million gallons of annual fuel supply. The deal marked Libertyville, Ill.-based State Oil's exit from the business, as CSNews Online previously reported.
As part of the latest agreement, the retail sites in the Chicago market will be sold to the buyer and leased to CrossAmerica for a period of 15 years with an additional 15 years of renewal options.
The transaction is subject to further due diligence and is expected to close by the end of the year.
"We are pleased to enter into this agreement with a leading real estate institution that will provide us with additional flexibility as we manage our available capital," said President Jeremy Bergeron. "With this pending sale-leaseback transaction, as well as various other initiatives, we continue to position the partnership for further growth, while strengthening our balance sheet and maintaining a strong coverage ratio."
Allentown-based CrossAmerica Partners is a leading wholesale distributor of motor fuels and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of CST Brands Inc.
Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,190 locations and owns or leases more than 880 sites. Its geographic footprint covers 29 states.