New West Exiting Retail
Published in CSP Daily News
Putting 32 West Coast locations up for sale to focus on wholesale, other businesses
SACRAMENTO, Calif. -- New West Petroleum LLC is selling 32 sites in California, opting to exit retail in favor of expanding its wholesale business and to further develop its real-estate prospects, according to officials.
"Retail has just become frustrating with the [rising] credit card fees and [other challenges].... We felt we could make more money doing something else," Gil Moore, the company's founder and owner, told CSP Daily News. "We're going to expand our real estate [business] and increase our wholesale operations."
The sale portfolio consists of 30 operating convenience [image-nocss] stores with gas stations including 22 fee-owned properties, seven leasehold properties and one fee/leasehold combination. In addition, there are two fee-owned undeveloped parcels; 29 properties are located in the San Diego market area and three in Northern California.
The sites are in Carlsbad, Carmichael, Chula Vista, El Cajon (4), Elk Grove, Escondido, Gridley, Imperial Beach, La Mesa, Oceanside (2), San Diego (17) and Vista.
A number of sites have repair shops. All the stations in the San Diego area are branded Exxon and some have Tiger Marts.
Founded in 1986, New West is a family-run business headquartered in Sacramento, Calif. Moore started the company as a wholesale distributor selling to end users such as trucking companies, farmers and gas stations. From 1991 to1994, New West concentrated sales on government contracts. In 1994, New West diversified its asset portfolio with the purchase of the company's first retail station and c-store. By 2000, the company owned and operated 36 branded and three unbranded stations with c-stores, car washes and fast-food franchises. New West currently has wholesale operations in five states.
"These are exceptional properties in high-traffic areas and all are being sold without any branding requirements," said Evan Gladstone, executive managing director of NRC Realty Advisors LLC, which has been retained by New West to coordinate the sale. "Sites are being sold without supply, and we expect interest from distributors as well as smaller operators."
NRC is offering both an all-inclusive sales brochure as well as individual property-specific packages (PSPs). The free brochure provides overviews of the property listings, including location and sales volume. The $35 PSPs ($25 CD-ROM versions available upon request) contain site-specific bid packages and detailed due diligence information. For more information, including bid submission guidelines, contact the NRC Customer Service Center at (800) 747-3342, extension 810, or visit www.nrc.com/810.
The locations will be sold through a sealed-bid sale in a "buy one, some, or all" format; bids are due July 22, 2008.
Chicago-based NRC Realty Advisors specializes in the sale of commercial real estate. With a concentration in the c-story industry, NRC provides real-estate and financial-advisory services. Since 1989, NRC has sold more than 10,000 properties. In 2007 NRC had sales of over $200 million with properties sold in 20 states. Clients include ampm, BP, Shell, Sunoco and other distributors and independent retailers.