JERICHO, N.Y. -- Getty Realty Corp. has announced it had agreed to long-term triple-net leases on 28 properties in New York and New Jersey with a subsidiary of BP PLC, BP Products North America Inc.
As reported in a Raymond James/CSP Daily News Flash on Tuesday, BP said that it intends to convert the 13 New York and 15 New Jersey sites to the BP brand. The sites will be operated by commission marketers and direct supplied from BP's Carteret, N.J., and Brooklyn, N.Y., terminals.
(See Related Content below for previous CSP Daily News coverage of the deal.)
Under the terms of the agreements, the aggregate annual triple-net GAAP revenue will be up to approximately $3 million. The leases with BP have initial 15-year terms with provisions for rent escalations and options for multiple renewal terms.
"With this new long-term agreement with BP, we have reached a critical milestone in this company's history. We have now virtually completed our efforts to reposition the portfolio previously leased to Getty Petroleum Marketing Inc., our former largest tenant, that filed for bankruptcy protection one year ago today," said David Driscoll, Getty's president and chief executive officer.
"At this point, we have now entered into long-term triple-net leases for 443 of those locations," he said. "While we also anticipate we may enter into additional leases on smaller portfolios, we will also continue to rationalize our portfolio through the disposition of underperforming properties. As we look ahead, we now believe we are well positioned to begin refocusing our efforts on reinvesting proceeds from asset sales and making accretive acquisitions, as we seek to create value for our shareholders."
BP--with U.S. operations based in Chicago, Houston and La Palma, Calif.--markets more than 15 billion gallons of gasoline every year United States to consumers through more than 11,000 branded retail outlets and supplies more than four billion gallons of fuel annually to fleets, industrial users, auto and truck manufacturers, railroads and utilities. With headquarters in London, BP is the single, global brand formed by the combination of the former British Petroleum, Amoco, Atlantic Richfield (ARCO) and Burmah Castrol. It is a global producer, manufacturer and marketer of oil, gas, chemicals and renewable energy sources.
Getty Realty, based in Jericho, N.Y., is the leading publicly traded real-estate investment trust (REIT) in the United States specializing in ownership, leasing and financing of convenience store/gas station properties and petroleum distribution terminals. The company owns and leases approximately 1,110 properties nationwide.