Getty Realty Corp. has acquired 36 properties located in the metro New York and Washington, D.C. Beltway regions for approximately $72.5 million in two sale/leaseback transactions with Capitol Petroleum Group LLC.
The acquisition includes 16 Mobil branded properties in metro New York, and 13 Exxon and seven Shell-branded properties within the Washington, D.C. Beltway. All of the locations included in the acquisition are high volume locations that serve high density population centers.
“We are excited to complete our first portfolio acquisition since 2011,” said David Driscoll, Getty’s president and CEO. “Building on our increased stability and utilizing our strengthened financial position, we completed the acquisition of 36 high quality Exxon/Mobil and Shell properties in highly desirable metro New York and Washington, D.C. Beltway markets. We are also pleased to expand our relationship with Capitol, a long-term tenant, which has a proven history of delivering reliable performance. With the accretive addition of these properties and the ongoing repositioning of our legacy portfolio, we believe that Getty has fortified its ability to generate additional cash flow for shareholders in the coming years.”
The 36 properties were acquired by Getty from, and simultaneously leased back to, subsidiaries of Capitol in two sale/leaseback transactions under long-term triple-net unitary leases having initial terms of 15 years plus three renewal options. The company expects to receive approximately $6.1 million of annualized revenue from the investment. In addition, the acquisition utilized a significant amount of accumulated proceeds from the company’s prior property dispositions through 1031 exchanges enabling the company to defer taxable gains on many of its 2013 property dispositions.