Getty Realty Corp. has closed a $260.9 million sale leaseback transaction with Refuel Operating Company, LLC, acquiring 41 convenience stores and simultaneously entering into four long-term, unitary net leases with the convenience store and retail fuel operator. The acquired properties include 17 stores in South Carolina, 12 in North Carolina, seven in Texas, and five in Mississippi, with initial lease terms of 20 years, multiple renewal options, and rent increases every five years. Refuel, which operates approximately 250 locations in five Southeastern states and is a portfolio company of First Reserve, is already a tenant at six Getty-owned convenience stores; pro forma for the deal, Refuel will become Getty's third largest tenant at roughly 7.7% of annualized base rent. Getty expects to fund the transaction on a leverage-neutral basis using proceeds from unsettled forward equity sale agreements, a new $200.0 million unsecured term loan, and identified property dispositions. Year to date, Getty has invested approximately $455.2 million in convenience and automotive retail assets at a 7.1% initial cash yield, and it holds a committed investment pipeline of more than $125.0 million at initial cash yields averaging 7.8%.
Getty Realty CorporationRefuel closed a $260.9M sale leaseback for 41 convenience stores, expanding its footprint and securing long-term leases
