An Allentown company, CrossAmerica Partners LP and its partner CST Brands Inc have conjoined in an agreement for the purchase of Erickson Oil Products Inc. and specific related assets. CrossAmerica is a leader in wholesale distribution of motor fuels. This $85M deal will allow CrossAmerica to initially operate all of the Freedom Valu convenience stores, but is expected to transfer the operations over a period of time. Gary Vander Vorst, President of Erickson Oil feels that this acquisitions will promote Erickson’s growth and cause it to be more competitive. This opportunity has also opened new doors to new markets for CST and CrossAmerica. The transaction is scheduled to close in the first quarter of 2015.
Everyone is speculating, forecasting, throwing their opinions up against the wall to see what sticks in regard to 2014 and what it holds for the commercial real estate industry. Realistic observations made by many in #cre present the industrial category as the contender for 2014. When serious Commercial Real Estate Investors were polled and they cited “warehousing” as a hot commodity and a leading performer.
This is a natural response to the retail industry’s desire to move the distributable goods closer to metro areas for effortless dissemination. There are new players trying their hand at the e-commerce game. It’s not just for the colossal behemoths like Amazon.com. Oh no sir or madam. Little mom and pop shops are bellying up and saying, “pour me some of what he’s having”. The warehouse industry doesn’t have to thank their lucky stars. They need to be thanking the retail industry not only getting them back on their feet, but in running shape once again.
As you may have guessed, development has increased in reply to the shout-out for logistics for the e-commerce business models. While our brick and mortar stores limp along, the fulfillment centers are exceeding expectations. Maybe, just maybe this will provide a much-needed boost for the commercial construction industry as well. They are still attempting to recover from their fall from glory in 2007. Watch for potential cost increases in materials, services and land. Welcome to the new age of retail, people. Tech forward, mobile friendly and innovative.