Brodie’s hits the gas Lex Brodie's Tire Co. has taken over two former Arco gasoline stations and may be looking to acquire additional retail gasoline locations.
with station buys
In the wake of two purchases,
it may be ready for moreBy Rick Daysog
rdaysog@starbulletin.comThe company is finalizing lease terms on Arco stations in Kaneohe and Waipahu with landowner U.S. Restaurant Properties Inc., in a move that would double the number of its retail gasoline outlets on Oahu.
Lex Brodie's has converted the stations to its Fast Gas brand and is already selling gasoline at those locations.
Robert Stetson, U.S. Restaurant Properties' chief executive officer, stressed that no deal has been finalized between the two companies. He said the arrangement with Lex Brodie's is one of several options that the company is exploring for its Hawaii Arco stations.
He declined further comment.
John Mayo, Lex Brodie's president, also had no comment.
The Kaneohe station is located on Kaneohe Bay Drive across from Windward City Shopping Center. The Waipahu location is on Farrington Highway two blocks from Lex Brodie's tire store.
Real estate sources said that Lex Brodie's may be looking to acquire as many as 10 former Arco stations, in what would make it one of the state's largest independent gasoline retailer.
The two companies could finalize that deal within the next month.
Lex Brodie's, known for its low prices, now sells gasoline in four locations on Oahu: the two new stations and two of its tire centers in Kakaako and Waipahu. It also operates tire centers in Kalihi and Pearlridge.
The new stations would give the Lex Brodie's additional leverage in a market dominated by isle refiners Chevron Corp. and Tesoro Hawaii Corp.
U.S. Restaurant Properties, a Dallas-based real estate investment trust that develops and operates fast-food restaurants and service stations nationwide, acquired the gasoline stations in 1998 when it took over Texaco's 27 Hawaii stations.
At the time, Texaco was under a court order to divest itself of many of its Hawaii stations when it agreed to merge with Shell Oil.
U.S. Restaurant Properties leased 17 of the Arco stations to B.C. Oil of California but took them back after B.C. Oil filed for bankruptcy protection in August 2000.
Since then, the Dallas landowner has leased eight of those Arco stations to 7-Eleven Hawaii Inc. and has put its Waikiki station on the market.