Forty of the locations are subleased to Getty Petroleum Marketing Inc. under a master lease through at least 2015. Leo Liebowitz, president and CEO of the Company, notes that Getty has been leasing these properties for the past 12 years. He says that the acquisition "will increase our net profit by reducing our annual rent expense by approximately $1.3 million in the first year and larger amounts in subsequent years, since we will not be subject to scheduled rent escalations."
The seller was not identified and calls to Getty were not returned by press time. But Liebowitz points out that the seller has agreed to indemnify Getty Realty for historical environmental costs. As a result, he says, Getty's exposure to environmental remediation expenses should not change as a result of the acquisition. "This purchase reinforces our commitment to profitable growth through acquisitions throughout the United States," Liebowitz adds.
Getty Realty Corp. is a real estate investment trust specializing in service stations, convenience stores and petroleum marketing terminals. The company owns and leases approximately 1,100 properties in the Eastern United States.
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