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ALLENTOWN, Pa. — CrossAmerica Partners LP completed a sale-leaseback transaction involving properties it acquired as part of its State Oil deal. The transaction with an unnamed institutional investors is for net proceeds of approximately $25 million.
In connection with the sale, CrossAmerica entered into a lease agreement with a 6.5-percent capitalization rate under which it will lease 17 properties in the Chicago market for an initial period of 15 years with an additional 15 years of renewal options.
The proceeds from the transaction will be used to reduce debt under the partnership's revolving credit agreement.
The sale-leaseback pact comes two months after CrossAmerica acquires the State Oil assets for $41.8 million. The assets include a total of 56 fee properties and 60 million gallons of annual fuel supply.
The original sale-leaseback deal included 20 properties for next proceeds of roughly $29 million, as CSNews Online previously reported.
Allentown-based CrossAmerica 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.