Completion of AAM Food & Gas Inc. Transaction Underscores Steady Advancement
Toward Goal of Becoming Largest Owner and Financer of Gas Stations and Related
Properties in the U.S.
WASHINGTON, Feb. 14 /PRNewswire/ -- Since closing it first deal last
October and backed with a $300 million credit facility through Lehman
Brothers, Petroleum Realty Investment Partners, L.P., (PRIP) has been steadily
expanding its transaction pipeline in a quest to become the country's premier
one-stop finance provider of choice to the independent retail gas station and
petroleum-related property sector. Driven by accelerating business growth,
PRIP has opened regional offices across the country in addition to its main
headquarters in Columbus, Ohio.
PRIP's latest deal exemplifies the market demand for its services. In
December, PRIP completed a $1,325,000 debt refinancing for AAM Food & Gas Inc.
on one of their 12 locations in greater Atlanta -- a Chevron station in
McDonough, Ga. AAM sought out PRIP because of its more flexible terms and to
help reduce their level of borrowing from their bank, enabling AAM to pursue
further expansion. AAM also has access to expert financial and advisory
assistance through PRIP's team of seasoned petroleum industry professionals.
Stephen H. Bittel, President and COO of PRIP, noted: "A key advantage for
PRIP over local banks is our alliance with Lehman Brothers and our ability to
offer an interim floating rate loan as well as long term fixed and floating
rate loans with extremely competitive rates -- and without requiring a
personal guarantee. We are tapping the market's strong receptivity to PRIP's
flexible range of financing options that can mean a difference of hundreds of
thousands of dollars more in an owner/operators pocket."
Bittel added that many owner/operators eventually run into the problem of
their local banks' concentration limits on customers. PRIP's degree of
specialization, petroleum industry expertise and financial flexibility --
including the ability to offer customized, non-recourse loans -- is something
local banks cannot compete with. "Owner/operators like dealing with pros who
understand the unique dynamics of these types of transactions and can make
sure everything runs smoothly," said Bittel.
Armen Grigorian, Regional Acquisition Advisor for PRIP, added: "The AAM
transaction showcases why we founded PRIP: because of the tremendous
opportunity we identified in being the first company to focus exclusively on
providing financing solutions to petroleum industry jobbers, dealers and
operators. The accelerating pace of deals for PRIP is a prime indicator that
an underserved need exists in this market."
Concluded Grigorian: "With a major consolidation underway due to oil
company mergers such as BP/Amoco, Exxon/Mobil and Texaco/Shell, many gas
stations must be divested under U.S. antitrust provisions. Including these
locations, we estimate there are 175,000 independently owned gas stations,
convenience stores and other freestanding properties nationwide that sell gas
or oil including certain types of restaurants, car washes and oil change
centers, 85 to 90 percent of which meet our acquisition and/or financing
criteria."
About Petroleum Realty Investment Partners
Petroleum Realty Investment Partners, L.P., which plans to go public
within 24 months, was co-founded in 1998. The Company seeks to become the
country's one-stop finance provider of choice to the independent retail gas
station and petroleum-related property sector, offering the following
services: 1) sale leaseback financing; 2) mortgage loan financing; 3)
equipment financing; and 4) third party construction loan services.
Petroleum Realty has entered into a joint venture agreement with Lehman
Brothers which has provided a $300 million credit facility to purchase gas
stations, convenience stores and related entities. Mortgage financing will be
originated through Lehman while equipment financing and construction loans
will be provided through third parties. Petroleum Realty will provide loan
originations through Lehman as a separate program.
Petroleum Realty's goal is to acquire and/or finance a majority of the
estimated 175,000 independently owned gas stations, gas station/convenience
stores and other freestanding properties nationwide that sell gasoline or oil
including certain types of restaurants, car washes and oil change centers.
Management estimates that 85 to 90 percent of these properties will meet its
acquisition and/or financing criteria.
Petroleum Realty's main offices are located in Tysons Corner, Virginia;
Columbus, Ohio; and Miami, Florida; with additional regional offices in major
markets across the country.
For more information, contact:
Armen Grigorian in PRIP's Atlanta office at 770-448-0456 or Mike Baskin in
PRIP's Virginia/Washington, D.C. office, at 703-714-8888,
Visit the Petroleum Realty website at: http://www.petroleumrealty.com .
SOURCE Petroleum Realty Investment Partners
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Related links:
http://www.petroleumrealty.com
CONTACT:
Michael D. Baskin, Sr.V.P. -- Acqs. & Ops.,
Virginia-D.C. Office, 703-714-8888, Stephen H. Bittel , President
& COO , Florida Office, 305-536-1300, or David J. Glimcher,
Chairman & CEO, Main HQ-Ohio Office, 614-224-4777; General, Paul
Scheeler, 312-640-6742, or pscheele@frb.bsmg.com, Media, Laura
Kuhlmann, 312-266-2239, or lkuhlmann@att.net, of The Financial
Relations Board
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