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Speedway filling up on Hess gas stations in New York

Fuel retailer has spent $53M to acquire eight outlets -- with more to follow

From left: Speedway president Tony Kenney and 21928 Hillside Avenue in Queens
From left: Speedway president Tony Kenney and 21928 Hillside Avenue in Queens

While gas stations in New York seem to be disappearing, one company is gearing up to keep them alive.

Speedway LLC has closed on its first eight locations across the city for a total of more than $53 million so far, property records filed with the city Thursday show. Prices for the filling stations range from $1.6 million for a lot at 914 Coney Island Avenue to $31.3 million for the Hess Express at 610 Tenth Avenue.

Speedway acquired 244 locations in New York, according to a spokesperson.

Speedway, a subsidiary of Marathon Petroleum Corporation, announced in May that it would buy all of New York-based Hess Corporation’s retail locations, transport operations and shipper history on various pipelines for a combined price of $2.9 billion. Part of that amount included an estimated $230 million of working capital and $274 million of capital leases, according to the gas company’s announcement.

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The purchases are part of the Ohio-based company’s push into East Coast markets. Speedway acquired all of Hess Retail Holdings’ 1,300 gas and convenience stores, putting Speedway in a total of 2,700 locations.

Elsewhere in the city, Speedway has closed on a $2.7 million purchase at 120-128 West 145th — one of the two purchases the company has made in Manhattan so far. In Brooklyn, the company bought 221 Bedford Avenue for $3.3 million, 204-222 Fourth Avenue for $5.3 million and 530 Utica Avenue for $3.6 million. The company also bought 21928 Hillside Avenue in Queens for $2.9 million and  951 Bay Street in Staten Island for $2.5 million.

The arrival of Speedway stations in new markets often sparks competition between local gas retailers — leading to lower prices at the pump.

Kyna Doles contributed reporting.

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