The REIT plans to sell seven of the 12 properties to Dallas-based 7-11 Inc. for $10 million, Nanci Kindle of US Restaurant Properties' investor relations tells GlobeSt.com. The remaining stations are being transferred to five other tenants. The stations, which generate about $1.5 million in rent annually, are scattered all over California, says Kindle.

B.C. Oil also operates stations in Texas for the Dallas-based REIT, but none of those properties are affected by the bankruptcy court ruling. Fred Margolin, US Restaurant Properties' CEO, says the transfer of the 12 stations will resolve portfolio problems. To date, about 100 properties have been sold or transferred, with 41 being Conoco stations. The revenue is being used to reduce the REIT's debt.

The REIT owns or manages more than 850 restaurant and gas station-convenience store properties in 48 states. Its properties are leased to operators of more than 300 restaurants and regional franchises of brands such as Arby's, Burger King, Pizza Hut, Dairy Queen, Spaghetti Warehouse and Taco Cabana.