Par Pacific Holdings announced recently that it has entered into a purchase agreement for 22 of its Hele convenience stores in Hawaii with a subsidiary of real estate investment trust Realty Income Corp., in a sale-leaseback transaction.

The terms of the transaction contemplate that upon closing the company’s subsidiaries will sell the retail convenience store/fuel station properties to Realty Income for an aggregate cash purchase price of $116.1 million and Par Hawaii will enter into a master lease agreement with Realty Income, to leaseback, on a commercial triple-net basis, the properties for an initial 15-year term, subject to the company’s option to extend the lease for up to an additional 20 years.

Par Pacific expects to use approximately $53.2 million of the net cash proceeds to repay debt and associated obligations related to certain of the properties and the remainder for general corporate purposes.

The company anticipates that the sale-leaseback transaction will be completed in the first quarter of 2021, subject to satisfaction of certain customary closing conditions for transactions of this type.

There will be no disruption of the company’s operations or customers as a result of the sale-leaseback transaction. Par Hawaii will continue to operate the retail businesses at the leased properties.