A North Charleston-based convenience store chain has finalized the $261 million sale of 41 of its retail locations in a rebalancing of its real estate holdings.
Refuel Operating Co. is leasing back all of the properties under the newly announced deal with Getty Realty Corp.
The sales included 17 South Carolina stores and at least two in the Charleston area. The others are in North Carolina, Texas and Mississippi.
“The transactions create a more balanced mix of owned-versus-leased real estate while preserving a substantial owned real estate portfolio,” Refuel said in a statement.
The company added that it has negotiated long-term leases with New York-based Getty, “with no change to how the stores are managed or operated.”
“Since inception, Refuel has been focused on assembling a portfolio of high-quality stores in attractive markets with significant real estate ownership,” co-CEOs Travis Smith and Jon Rier said in a written statement. “This transaction exemplifies the benefits of that strategy, allowing us to unlock significant value while maintaining a highly attractive network of stores and a strong balance sheet.”
In the Charleston area, publicy traded Getty paid $8.47 million for the Refuel at Venning Road and Hungryneck Boulevard in Mount Pleasant and $5.28 million million for the store at 1270 Red Bank Road in Goose Creek, according to public real estate records filed last week.
The 41 locations average about 5,000 square feet of retail space on 2.5 acres. The 20-year leases include multiple renewal options and rent increases every five years.
“Refuel is one of the leading operators in the convenience store sector, and its premium brand, growing platform, and high-quality real estate align well with Getty’s underwriting criteria for convenience store acquisitions,” CEO Christopher Constant said.
The deal mirrors a similar arrangement the two companies struck five years ago. In 2021. Refuel sold and leased back from Getty two stores — at 2520 N. Main St. in Summerville and at 1702 Clements Ferry Road near Daniel Island — for a combined $9.82 million.
The convenience store chain also announced last week that it has refinanced its debt and established a new credit agreement with several banks. Terms were not disclosed.
The retailer said the refinancing is “expected to materially reduce” its annual interest payments and “meaningfully” improve its financial position.
Refuel was launched around 2010 by Mark Jordan, who is now chairman of the company. The startup was operating five stores when it was bought by private-equity investor First Reserve of Stamford, Conn., about seven years ago. A $511 million capital infusion led by Sixpoint Partners followed in 2022.
The chain’s footprint has since grown to about 250 locations around the Southeast, primarily through acquisitions.