Getty Realty buys $261M of Refuel property in sale-leaseback

What's the deal? Refuel has completed a $260.9 million sale-leaseback transaction with Getty RealtyDealroom has a profile for this one. Try Dealroom →, which acquired the real estate of 41 of the convenience retailer's properties. Refuel will keep operating all locations under long-term leases, with no change to how stores are managed.

Why now? Alongside the sale, Refuel closed a new senior secured credit facility to refinance existing debt. The company expects the deal to materially cut its annual interest expense.

What's the endgame? Refuel said the transactions create "a more balanced mix of owned versus leased real estate while preserving a substantial owned real estate portfolio." It operates roughly 250 locations across the southeastern US.

Who's involved? Citizens BankDealroom has a profile for this one. Try Dealroom → serves as administrative agent for the new facility, with Bank of MontrealDealroom has a profile for this one. Try Dealroom →, Fifth Third Bank, Pinnacle BankDealroom has a profile for this one. Try Dealroom →, and Wells FargoDealroom has a profile for this one. Try Dealroom → as joint lead arrangers.

Co-chief executive officers Travis Smith and Jon Rier said the deal exemplifies Refuel's strategy of "assembling a portfolio of high-quality stores in attractive markets with significant real estate ownership," letting it "unlock significant value while maintaining a highly attractive network of stores and a strong balance sheet."

The signal: Sale-leasebacks let asset-heavy retailers turn owned real estate into cash without giving up operational control — a lever convenience chains increasingly use to fund growth and strengthen their balance sheets.

Read more: cstoredecisions.com

Image credit: MichaelSteeber