The deal was a simultaneous transaction involving Getty, ExxonMobile and White Oak Petroleum, in which White Oak acquired the properties from ExxonMobile and the completed the sale leaseback with Getty Realty Corp. The transaction has an initial term of 20 years, plus renewal options. The properties will continue to operate under the Exxon brand by the independent dealers.
An affiliate of DAG Enterprises, White Oak Petroleum is led by Joe Marno, a motor fuel distributor in the Mid-Atlantic. Getty's entered the deal from a very solid cash position; in August it reported that net earnings increased by $3 million to $13.6 million for the quarter ended June 30th, and by $1.5 million to $23.5 million for the six months ended June 30th, 2009. This compares to $10.6 million and $22 million for the respective prior year periods.
Sale leasebacks are common retail finance strategies, well suited for gas and convenience stores. This summer, for example, RaceTrac Petroleum tapped CBRE to market 16 newly constructed store-fueling stations for the Atlanta based company, located in Dallas, Irving, Murphy, Garland and Carrollton, TX; Hiram, Marietta and Woodstock, GA; Tampa and Mt. Dora, FL; Little Rock, AK; Corinth and Jackson, MS; and Chattanooga, TN.
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