A number of former Sinclair convenience store locations in Eastern Iowa operated by Brew Oil, closed suddenly in September 2023, have recently reopened or are in the process of reopening, with several stores in Cedar Rapids and Hiawatha expected to follow suit in the next few months.
The Chicago-based InCommercial Property Group has already reopened six former Brew Oil-operated locations in Davenport, brand director Alicia LaFollette said, and two more locations are reopening March 18.
In September, Brew Oil was forced to close Brew Oil locations in Eastern Iowa, many with Sinclair branding, including stores in Cedar Rapids, Hiawatha, Eldridge and Davenport, after attempts to renegotiate leases for the properties were unsuccessful.
The Cedar Rapids and Hiawatha locations, formerly Kwik Shops, were sold in transactions recorded from mid-January through mid-February, according to Cedar Rapids assessor’s records.
After the purchases, the Cedar Rapids area stores were gradually rebranded from Kwik Shop to Sinclair locations, a process completed in mid-2023 with the addition of new Sinclair signage at all five locations.
After the locations closed, Brew Oil officials confirmed that the family-owned company ceased operations in Eastern Iowa, resulting in the closure of 15 Sinclair convenience stores. However, Brew Oil officials say the company hadn’t purchased the store locations – they had signed an operational lease to manage the locations under the Brew convenience store brand.
Brew officials say they operated the stores under a lease agreement with MEX RE-NW-IA LLC, a Wyoming company, and its parent company, Mountain Express Oil Company, headquartered in Acworth, Georgia.
Shortly after Brew began managing the Eastern Iowa stores, Mountain Express Oil filed for federal bankruptcy protection in Texas.
Then in August 2023, a federal bankruptcy court ordered the termination of Mountain Express Oil’s master lease with the out-of-state owners, including its lease with Brew for the Eastern Iowa stores, which closed shortly thereafter.
The Eastern Iowa locations were subsequently purchased by InCommercial, which was not affiliated with either Brew or Mountain Express.
So far, Ms. LaFollette said, InCommercial has reopened six Davenport locations. Two convenience-only stores under the name The Goods Spot opened Feb. 19 at 2805 Telegraph Road and 1732 N. Marquette St. Four additional gas stations with convenience stores opened Feb. 26 at 201 W. 53rd St., 1136 E. Locust St., 303 W. Locust St. and 3624 W. Locust St. With Sinclair Oil operating the fuel pumps, the convenience stores reopened under the name The Gas Spot.
Two more locations, at 1 Grove Road in Eldridge and 1670 W. Kimberly Road in Davenport, are anticipated to open March 18, Ms. LaFollette said.
A total of 10 locations in the Davenport area, owned by ICC Motor Fuel I LLC, have been undergoing rebranding and remodeling, with the remaining locations slated to open later this year, according to an InCommercial news release.
“Davenport is a livable city that has the amenities that people want, the economy that people can support, and a cost of living that people can afford,” InCommercial CEO Tiffany Fraley said. “We were attracted to the opportunity of owning gas station and convenience store properties located within a short radius of each other. Davenport was named one of the top 100 places to live in the US per a 2023 poll conducted by livability.com, so when this cluster of stores were available for purchase, we seized the opportunity.”
InCommercial will also serve as the operators of the five former Sinclair-branded Brew Oil stations in Cedar Rapids and Hiawatha, Ms. LaFollette said. Those stores are located at 3301 J St. SW, 1003 First Ave. SW, 2904 Center Point Road NE and 4201 Center Point Road NE, all in Cedar Rapids, and at 300 Blairs Ferry Road NE in Hiawatha.
“Specifically for the Cedar Rapids and Hiawatha stations, we’ve been working with the DNR on our tank compliance, upgrades and repairs, and are completing our permitting processes,” she said. “We hope to be opening those stores in April.”
Employees are already being hired for the Cedar Rapids locations. Ms. LaFollette said InCommercial’s store operating company is hiring in the area, and applicants can go to LPT Service’s website at www.lptservices.com and click on the Employment tab to find open positions.
The stores are owned by a fund executed in 2023, Ms. LaFollette said, “so while there are multiple owners, InCommercial runs the stores as both tenant and landlord after the previous tenant went through bankruptcy last fall.”
To re-open properly, the sites needed repairs to coolers and HVAC systems, extensive cleaning, and new point of sale equipment and software. Each store has hired new staff, with about six employees per location, and the stores have fresh merchandise and new product offerings, according to the InCommercial news release.
“We believe that even with the rise of the electric vehicle, gas stations are and will still be needed for many years to come,” Ms. Fraley said. “We see this as a good investment not only because of the continued need for fuel, but also for the ongoing demand of convenience and product offerings. One of our goals is to be that place where people stop in for what they need and stay a few minutes longer because a store employee engaged them in conversation, or they learned about a local coffee roaster being showcased in the store. Even though owning and operating these c-stores and gas stations may seem like a small opportunity to some, we see it as a way for us to become part of a community and make a big impact.”
