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WASHINGTON, D.C. -- With Petroleum Capital and Real Estate LLC acting as its exclusive financial advisor, PMG Northern Virginia LLC closed on the acquisition of 52 Shell stations owned by Shell subsidiary, Motiva Enterprises LLC.
All the sites are located in northern Virginia, and the purchaser, PMG Northern Virginia LLC, is a newly formed entity created by Petroleum Marketing Group Inc., a large and well-established Shell-, ChevronTexaco- and CITGO-branded jobbership, and a leading regional distributor of petroleum products and services in the Mid-Atlantic region of the United States.
The sites are located primarily in three northern Virginia counties and are "a combination of c-stores and traditional auto-repair facilities," John Sartory, managing director and principal of Petroleum Capital and Real Estate told CSNews Online. "They have all been in the Shell network for quite awhile. They are all in good or new shape. Some have recently been upgraded by Shell, so the network is certainly sustainable the way it is.
"This was a rare opportunity for our client to acquire a large number of premium real estate sites in northern Virginia, a trade area that is still growing and has very high barriers to entry," Sartory added. "In addition, our firm secured all of the senior secured credit facilities required to close on the transaction from a single regional lender and as a result, PMG Northern Virginia LLC was able to avoid the costly and time-consuming loan syndication process."
The deleveraging of oil company retail assets, a la BP, Shell, Exxon and to some extent, Sunoco, is "just an ongoing trend that will probably continue for the next two to four years," Sartory stated.
In 2009, with the closing of this transaction, Petroleum Capital and Real Estate has helped its clients close on over $250 million in retail acquisitions.
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