PHOENIX-In a sale-leaseback arrangement, Sovereign Investment Co. has acquired five tire and auto centers in the metro for $8.6 million. The buyer also has a forward purchase commitment of $3.68 million for two additional stores, now under construction, and plans to buy more in the future.

As part of the deal, locally based Fletcher's Tire & Auto Service has signed 20-year leases for the locations. In the meantime, Fletcher's will continue to own and operate its 21 other stores throughout the area.

"From our perspective, Fletcher's was a strong long-term regional operator with great locations in high-growth markets," says Rob Bickel, vice president of Sovereign Investment's San Francisco office. He tells GlobeSt.com that the five stores were targeted as acquisitions because they were owned free and clear by the chain.

Sovereign Investment also is working with Fletcher's to develop and acquire more outlets in the future although there is nothing concrete beyond the two that are under construction. Those stores are slated for completion in the second quarter.

Bickel says the typical Fletcher footprint is 5,700 sf in areas with high traffic counts and high residential concentrations. "Fletcher's has identified high-growth markets and is getting into those markets right at the transition point when they can be the first to be there," he says. He adds that Fletcher's is primarily focused on Greater Phoenix right now, but other regional markets could evolve in the future.

The just-bought stores are located at 2605 S. 83rd Ave. and 4915 E. Carefree Hwy. in Phoenix; 20926 N. John Wayne Pkwy. in Maricopa; and 259 E. Hunt Hwy. in Queen Creek and 1553 Crimson Rd., both in Mesa.