Wednesday, January 18, 2017
Sunoco Strategic Alternatives Include Sale of 100 Sites
Company will review all bids before divesting any assets
Source: CSP Daily News
By Greg Lindenberg, EditorDALLAS -- As part of a strategic review of its overall portfolio, Sunoco LP will sell or consider alternatives for more than 100 real-estate assets, including company-owned convenience stores with gasoline, undeveloped greenfield sites and other excess real estate, the company announced.
The properties are located in 15 states: Florida (5), Louisiana (1), Massachusetts (2), Michigan (1), New Hampshire (1), New Jersey (10), New Mexico (3), New York (17), Ohio (1), Oklahoma (3), Pennsylvania (14), Rhode Island (1), South Carolina (2), Texas (31) and Virginia (7).
The convenience stores include Sunoco- , APlus- and Stripes-branded locations, among others. Fuel brands include Sunoco, Conoco, Diamond Shamrock and Phillips 66.
"Sunoco LP has been focused on growth and acquisitions over the past few years, and we are now taking the opportunity to evaluate our portfolio," Jeff Shields told CSP Daily News. "The list of properties includes company-owned locations (both company operated and dealer operated), undeveloped greenfield sites and other excess real estate (including closed stores). This does involve the likely sale of the properties, but remember also that often these sites will be sold to a dealer or distributor and continue to sell Sunoco fuel."
Sunoco has retained NRC Realty & Capital Advisors LLC, Chicago, to assist with the process.
The properties will be sold through a sealed-bid sale in a “buy one, some or all” format, with bids due March 7, 2017, for the operating sites and April 4, 2017, for the surplus properties.
At press time, the NRC sale website lists 65 c-stores and 34 other properties. Sunoco will review all bids before divesting any assets, the company said.
"We also have additional sites that are listed with other brokers that are in some stage of the sale process, which brings the total to more than 100," said Shields.
Sunoco is offering 64 of the properties for sale as c-stores with gas with the fee interest in the real property; 61 of the gas properties are operating, and three are closed. It is selling the c-stores unbranded, but bidders may make an offer for a site to remain branded.
It is offering the gas properties with or without fuel supply. Although Sunoco will entertain offers without fuel supply, its preference is to sell the properties subject to the fuel supply agreement. The company will require all gas properties, including those it sells without fuel supply, to retain the existing fuel brand after closing. The gas properties Sunoco sells with fuel supply will be sold with 15-year branded fuel supply agreements.
Fifteen of the gas properties are company-owned, dealer-operated (CODO) gas stations with convenience stores. All of the CODO properties are currently operating.
Sunoco is selling 12 of the properties as former gas stations with the fee interest in the real property. The underground storage tank (UST) systems have been removed or closed at all commercial properties. It will offer the commercial properties for sale with a use restriction prohibiting the sale of motor fuel, beer and wine for off-premises consumption, grocery items and Mexican food.
Sunoco is selling 23 of the properties as vacant land with the fee interest in the real property. It will sell vacant properties with a use restriction prohibiting the sale of motor fuel, beer and wine for off-premises consumption, grocery items and Mexican food.
NRC provides real-estate and financial advisory services to the convenience store and petroleum industries and specializes in the accelerated sale of commercial real estate. It offers portfolio evaluation and analysis; refinancing, recapitalization and sale-leaseback financing options; and merger and acquisition advisory services. Other petroleum and c-store industry clients include BP, Shell, 7-Eleven, CST Brands and Circle K.
Dallas-based Sunoco LP is a master limited partnership (MLP) that operates approximately 1,345 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,900 sites.
Energy Transfer Equity LP, Dallas, owns Sunoco’s general partner and incentive distribution rights. In November 2016, Sunoco Logistics Partners LP acquired Energy Transfer Partners LP, which previously acquired all branches of Sunoco in 2012 for more than $5 billion. Philadelphia-based Sunoco Logistics Partners acquired Energy Transfer Partners, with the publicly traded Energy Transfer Equity remaining the overall parent business.
To see a list of convenience stores for sale and gas stations for sale, click here.