Real Estate Program
In October, Yesway announced it had raised an additional $235 million of equity capital, $135 million of which was to be invested in targeted real estate capital projects. The capital is also earmarked for complementary acquisitions to further expand the Yesway/Allsup's brand presence, the company said this past fall.
Beverly, Mass.-based Brookwood Financial Partners LLC, the private equity firm that founded Yesway, was the sole private placement agent for the offering. In total, it has raised more than $642 million in equity capital for its Yesway affiliate in addition to arranging more than $237 million in sale-leaseback proceeds.
Concurrent with and in support of this initiative, Yesway has also made significant investments in its people, hiring hundreds of new employees and recognizing their excellent work through its Hospitality Heroes program.
"As part of our integration of Allsup's, we have identified over $135 million in real estate capital projects within the portfolio, including razing and rebuilding 27 existing Allsup's stores, performing targeted upgrades to over 100 additional Allsup's stores, converting several existing Yesway stores in Texas to the Allsup's brand, significantly upgrading many of our existing Yesway-branded stores and adding new-to-market stores in communities which we have determined could benefit from an Allsup's store," Trkla said in making the announcement this past fall. "In particular, these improvements will allow us to offer the complete Allsup's foodservice program to Yesway customers, including, of course, the world-famous Allsup's Burrito."
Over the past several years, Allsup's has completed more than 100 raze-and-rebuilds of existing c-stores, increasing its average store size from 2,400 square feet to over 4,800 square feet, allowing for an expanded selection of in-store merchandise and private label offerings.
In late 2019, Fort Worth-based Yesway closed on its acquisition of Allsup's Convenience Stores. The transaction, which was first announced in October 2019, was Yesway's largest in its history. With the addition of Clovis, N.M.-based Allsup's, Yesway's store count grew to more than 400 convenience stores and bolstered its presence in Texas, New Mexico and Oklahoma.
Established in 2015, its portfolio currently consists of 400-plus stores located in Texas, New Mexico, South Dakota, Iowa, Kansas, Missouri, Wyoming, Oklahoma and Nebraska, including the Allsup's.