american_retail_services
CLIENT American Retail Services, LLC
LOCATION Central Oregon
SERVICES Capital Procurement
Financial Analysis
Project Management
PROPERTY SIZE Six Operating Gas Station/Convenience Stores

ACCOUNT OVERVIEW

Peter Quinn, now of McKinney Advisory Group, has maintained a relationship with American Retail Services (ARS) for over 4 years, providing real estate development services in central Oregon, Washington and Utah. Peter has helped ARS create a comprehensive approach to identifying, acquiring and developing new operating properties. The portfolio approach comes from a foundation in locating and underwriting assets while maintaining strict adherence to ARS’s objectives. When a portfolio of assets became available in central Oregon, Peter worked with ARS staff to underwrite the business and assisted the CFO in understanding how the real estate could help finance the transaction. With a strategy in place, Quinn identified an investor who provided the equity necessary to close the transaction.

 

CHALLENGE PRESENTED

Underwriting gas station properties is particularly challenging due to the operational and environmental issues involved. With a solid background in development Peter knew the challenges as well as Best Practices in the time sensitive process. Adding to the difficulty was the fact that the 3rd party investor had never owned or operated a gas station, and was initially unclear about the risks involved with ownership. Peter Quinn had to work on educating his client on the risks and potential obstacles while finding ways to overcome them as proactively as possible.

 

SOLUTIONS

In the end, the transaction involved a complicated deal structure and negotiation. Peter worked closely with the operator and the capital to align their interests resulting in a commitment of capital and closure of the transaction in a timely manner. Since the close of the deal, the “investor” has offered further $50 Million in equity to acquire additional operating properties.

The closed transaction and commitment of additional funds for future opportunities is, in part, the result of Peter Quinn’s facilitation of the understanding between all parties of the operations true value. Real estate enabled ARS to grow the operating business with very little out of pocket cost.