Petroleum Realty closes deal with Lykins -- one of Ohio's largest gasoline
retailers
COLUMBUS, Ohio, March 7 /PRNewswire/ -- Petroleum Realty Investment
Partners, L.P., (PRIP), backed by a $300 million credit facility through
Lehman Brothers, today announced its first sale-leaseback of a BP-brand gas
station, located in Warsaw, Ky., for $2 million in a deal with Lykins
Convenience Stores, Inc. PRIP's mission is to become the country's premier
one-stop finance provider of choice to the independent retail gas station and
petroleum-related property sector.
The Lykins organization has been a petroleum industry jobber for over 50
years and includes the Lykins Oil Company, one of Ohio's largest gasoline
retailers with one of the strongest marketing and distribution teams in the
state. In addition to its 13 company-owned locations, Lykins is a supplier to
over 100 units, including the Citgo, BP, Exxon, Mobil, Marathon and Ashland
brands.
David J. Glimcher, Chairman and CEO of PRIP, noted: "We are winning the
business of major owner/operators like Lykins because of PRIP's ability to
offer superior financing alternatives including sale-leaseback packages.
Local banks simply cannot compete with our flexible, highly competitive and
customized loan programs or our team's petroleum industry expertise and
specialization. The sheer volume of deals in our pipeline suggests that PRIP
is well-positioned as a major national player in the petroleum-related
property sector."
Richard Hunt, Acquisition Advisor to PRIP, added: "This is a very exciting
time in the industry as petroleum industry jobbers, dealers and operators are
highly receptive to PRIP's specialized approach to their financing needs.
Major oil company mergers are also resulting in the compulsory sale of gas
stations across the country under U.S. antitrust provisions, the vast majority
of which are prime prospects for acquisition or financing by PRIP. The sheer
scope of the developing market allows us to be highly selective while still
pursuing a large number of transactions."
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:
David J. Glimcher in PRIP's Columbus, Ohio office at 614-224-4777,
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, all of
Petroleum Realty Investment Partners; or General Information,
Paul Scheeler, 312-640-6742, or pscheele@frb.bsmg.com, or Media
Inquiries, Laura Kuhlmann, 312-266-2239, or lkuhlmann@att.net,
both of FRB-BSMG
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