MIAMI, May 31 /PRNewswire/ -- Petroleum Realty Investment Partners, L.P.
(PRIP) today announced it has closed a sale -- leaseback and debt financing
transaction with USA Grocers, Inc. for six gas stations/convenience stores in
the Boca Raton, Florida area. Under the terms of the agreement, PRIP is
providing $19.2 million in funding.
The six facilities are located in the Boca Raton area and feature the
Chevron and Exxon/Mobil brands. Boca Raton-based-USA Grocers, which operates
78 gasoline stations and convenience stores in Florida, Georgia and South
Carolina, acquired these facilities from NextStore Inc. (formerly Knight
Energy). Petroleum Realty funded the acquisition via $14.6 million in
sale -- leaseback financing and $4.6 million in debt financing. Approximately
$1 million will be used to upgrade these facilities, with improvements ranging
from full reconfiguration of convenience stores to new signage and general
renovations.
"USA Grocers, a respected operator and acquirer of gas stations, is an
excellent partner for Petroleum Realty," said Stephen H. Bittel, president of
PRIP. "Our expertise in the petroleum industry and ability to close
transactions at mutually favorable terms are making Petroleum Realty
increasingly attractive to growing owner/operators like USA Grocers. During
the last four months, we have completed more than $50 million in transactions
and expect to close $250 million in additional activity by the end of this
year."
"Petroleum Realty understands the challenges of our business and provided
us with a financing package that will help improve these properties and
sustain our growth," said Ali M. Jaferi, president and chief executive officer
of USA Grocers. "We look forward to working with Petroleum Realty as our
lender of choice on additional acquisitions across the Southeast."
"Florida is a prime market for consolidation and Petroleum Realty is now
an established leader in this area," said Mark Radosevich, region acquisition
manager for the Florida and Texas markets for PRIP. "We expect that a number
of the pending deals will come from Florida."
Petroleum Realty Investment Partners, L.P., founded in 1998, is seeking to
become the country's one-stop finance provider of choice to the independent
retail gas station and petroleum-related property sector, offering
sale -- leasebacks, mortgage loan and equipment financing and third-party
construction loan services. Petroleum Realty has a joint venture agreement
with Lehman Brothers for a $300 million credit facility to purchase gas
stations, convenience stores and related entities. Mortgage financing is
through Lehman, while equipment financing and construction loans are provided
through third parties. The company's goal is to reach $300 million in assets
by the end of 2000 and $1 billion in assets by the end of 2001.
Petroleum Realty's main offices are located in Columbus, Ohio; Miami,
Florida; and Tysons Corner, Virginia; 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, Stephen H. Bittel in
the Miami office at 305-536-1300 or 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:
David J. Glimcher, Chairman, 614-224-4777, or
Stephen H. Bittel, President, 305-536-1300, both of Petroleum
Realty Investment Partners, L.P.; or Fred Nachman of Marjan
Communications Inc., 312-867-1771, for Petroleum Realty
Investment Partners, L.P.
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