Sunoco LP
W. P. Carey acquires high-quality retail assets with strong long-term fundamentals
Tenant Description: Founded in 1886, Sunoco LP ("Sunoco") is a leading energy infrastructure operator, distributing more than 17 billion gallons of fuel annually through an extensive network of retail and commercial customers. Sunoco is rated BB+ by S&P and Ba1 by Moody’s.
Total Investment: $26 million
Transaction Type: Acquisition of existing lease*
Square Footage: 15,900 square feet
Location: Arkansas
Facility Type: 7 fuel stations
W. P. Carey completed the $26 million acquisition of seven fuel stations located in Arkansas. Totaling 15,900 square feet, the portfolio is net leased to Sunoco, the largest independent fuel distributor in the Americas.
The portfolio consists of small format, fungible retail fuel and convenience store assets, with a demonstrated operating history dating back to as early as 1990. Each of the seven stores generates meaningful positive EBITDA.
The assets are master leased on a triple-net basis for a term of 20 years with fixed annual rent escalations.
*In an acquisition of an existing lease, W. P. Carey will acquire a single-tenant property subject to an existing net lease. This type of transaction enables the previous property owner to achieve a number of different objectives depending on their needs. For example, exit a property that no longer fits its strategy, liquidate a finite-life fund or generate proceeds to invest in new properties or for M&A activity.
These are high-quality retail assets with strong fundamentals, supported by a long operating history and consistent performance across the portfolio. Combined with Sunoco's scale and established market position, the portfolio offers an attractive investment opportunity that aligns well with our approach to retail investing, which is centered on defensive, necessity-based retail categories.