GPM Inks $1 Billion Real Property Commitment

The Oak Street Real Estate Capital deal will enhance GPM’s acquisition growth strategy.

May 07, 2021

Valero Location

RICHMOND, Va.—GPM Investments LLC, a wholly owned subsidiary of ARKO Corp., announced a deal with Chicago-based real-estate investment firm Oak Street Real Estate Capital LLC that calls for Oak Street to purchase and lease to GPM real estate associated with convenience stores and gas stations GPM acquires.

The plan is for GPM to own and operate the related acquired businesses, while Oak Street owns the real estate and leases it to GPM. Oak Street is committing as much as $1 billion to the program for a one-year period.

“We believe that working with Oak Street will allow us to be a more attractive acquirer and add additional flexibility as we structure acquisitions,” said Arie Kotler, president and CEO of GPM, in a press release. “We remain highly focused on our core acquisition model, and we expect that this partnership will enhance certainty of deal execution and as a result, strengthen our growth as a company.”

As the seventh-largest U.S. convenience store chain, GPM has executed 18 acquisitions since 2011, growing the company to almost 3,000 sites with more than 10,000 employees operating in 33 states and Washington, D.C. This agreement further demonstrates the company’s continued commitment to aggressive growth.

“ARKO is a phenomenal company that is making the right strategic decisions,” said Marc Zahr, CEO and managing partner of Oak Street. “Their ability to utilize our balance sheet to fund their real-estate footprint allows them to focus on their accretive growth and core operations. We are excited about what our partnership can do for their business and to help fuel their continued success.”

For more on GPM and its growth strategies, read “Tying It All Together” in the March issue of NACS Magazine.