Petroleum Industry Entrepreneur and Russian Immigrant Semyon Logovinsky
Latest Owner/Operator to Take Advantage of Petroleum Realty's Flexible
Financing
COLUMBUS, Ohio, March 1 /PRNewswire/ -- Backed with a $300 million credit
facility through Lehman Brothers, Petroleum Realty Investment Partners, L.P.,
(PRIP), has completed its latest deal 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.
PRIP provided $2 million in sale leaseback financing for two of the 15 gas
stations owned by Semyon Logovinksy, a Russian immigrant who has been in
business more than 20 years including work as a Citgo brand jobber. The two
locations -- a Sunoco and an Exxon station -- are in Bensalem, Pa. near
Philadelphia, and are owned by Mr. Logovinsky's company, ARFA Enterprises,
Inc. Mr. Logovinsky also has 13 Exxon and Sunoco locations in New Jersey
owned through another firm of his, Atlantic Springs City Corporation.
Mr. Logovinsky echoed the sentiments of other owner/operators, indicating
that he chose PRIP to help him pursue expansion because of its more flexible
terms and to reduce his companies' level of bank borrowing. This helped him
avoid a common problem encountered by owner/operators who eventually reach
their local banks' concentration limits on customers. PRIP also provides
owner/operators expert financial and advisory assistance through its team of
seasoned petroleum industry professionals.
Stephen H. Bittel, President and COO of PRIP, noted: "Mr. Logovinsky has
become one of a growing number of owner/operators advocating PRIP's
sale-leaseback financing to fuel the growth of their business. We have a
distinct advantage over local banks in our alliance with Lehman Brothers and
our ability to act quickly. Nor can local banks compete with the expertise
and specialization of PRIP professionals, who work closely with
owner/operators to ensure a smooth transaction."
Michael D. Baskin, Senior V.P. - Acquisitions for PRIP, added: "The
increasing popularity of PRIP's specialized financing options demonstrates why
we founded this company. There is a vast opportunity in focusing exclusively
on providing financing solutions to petroleum industry jobbers, dealers and
operators. The number of deals in our transaction pipeline continues to grow,
showing that a strong unmet need exists in this market. Furthermore, a major
consolidation is underway due to oil company mergers such as BP/Amoco,
Exxon/Mobil and Texaco/Shell, where many gas stations must be divested under
U.S. antitrust provisions. We estimate there are approximately 175,000
independently owned gas stations, convenience stores and other freestanding
properties nationwide that sell gas or oil of which 85 to 90 percent 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:
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, L.P.
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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, David J. Glimcher, Chairman
& CEO, Main HQ-Ohio Office, 614-224-4777, all of Petroleum Realty
Investment Partners, L.P.; or General, Paul Scheeler,
312-640-6742, pscheele@frb.bsmg.com, or Media, Laura Kuhlmann,
312-266-2239, lkuhlmann@att.net, both of The Financial Relations
Board
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