[CLARIFICATION: Alimentation Couche-Tard does not own these sites, it leases them; therefore, the company is not selling them or changing its business in Oklahoma at all, the company said.]
LAVAL, Quebec -- Alimentation Couche-Tard Inc.--which has been in the Oklahoma market since 2007--has put 42 Circle K properties located in the Oklahoma City area on the auction block. The company is hoping to get $60 million for the full portfolio.
Most of the sites (24) are located in Oklahoma City; the other sites are located in Edmond (5), Midwest City (2), Moore (2), Norman (5) and Yukon (4), Okla.
As reported Wednesday in a Raymond James/CSP Daily News Flash, the properties are all leased to Circle K on a long-term basis and will only be sold as a portfolio. The Circle K properties each have 12 lease years remaining and feature multiple rental escalations in the primary lease terms. The triple net leases are all guaranteed by Couche-Tard.
"This portfolio represents a rare opportunity for an investor to acquire a large portfolio of triple net leased properties leased to an investment-grade tenant" said Randy Blankstein, president of The Boulder Group, Northbrook, Ill., a national "boutique" single-tenant net lease investment brokerage firm that has been selected as the exclusive advisor for the sale.
Jimmy Goodman, partner of The Boulder Group, added, "Demand for the portfolio will be high as the properties are concentrated in a top-tier MSA [metropolitan statistical area], offer no landlord responsibilities and each lease features multiple rental escalations."
In spring 2007, Couche-Tard acquired 53 All Star convenience stores in Oklahoma City from Star Fuel Marts LLC (see Related Content below fro previous CSP Daily News coverage). After their conversion to the Circle K banner, the stores were Couche-Tard's first in the Oklahoma region.
The portfolio now on the auction block possibly includes some of those stores.
Neither Couche-Tard nor Circle K responded by press time to a CSP Daily News request for comment on the sale of the 42 stores.
As of July 22, 2012, Laval, Quebec-based Couche-Tard's network included 6,109 c-stores throughout North America, including 4,534 stores with fuel dispensing. It has agreements for the supply of motor fuel to 357 sites operated by independent operators. Its North-American network consists of 13 business units, including nine in the United States covering 40 states and the District of Columbia (under the Circle K banner) and four in Canada covering all 10 provinces (under the Couche-Tard and Mac's banner).