Balch Springs Branded Gas Station & C-Store, Dallas County TX with Real Estate

$4.8M

Revenue

$1.1M

SDE

6.5x

Multiple

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Full Editorial Writeup

This is a branded gas station and convenience store located at a major highway exit in Balch Springs, part of Dallas County, Texas. The site runs eight double-sided fuel dispensers plus a fast diesel pump for trucks, moves roughly 80,000 gallons of fuel per month, and does $85,000 to $90,000 in monthly merchandise sales through the C-store, including higher-margin hot and fast food. The sale is a real estate deal as much as an operating one: it includes a 5,500 square foot building on a full acre of land, and the asking price of $7.2 million is stated as "plus inventory" of $120,000.

The revenue stack is more diversified than a typical single-pump station. Beyond fuel and in-store merchandise, the business collects $540,000 in rental income from tenants that include a restaurant and the gas station itself, plus ancillary income from lottery, air, cigarettes, amusements, ATM, and various vendor rebates and commissions. That mix of fuel, retail, food service, and rent gives the property multiple independent income lines under one roof.

At $4.8M in revenue and $1.1M in cash flow, this is priced at roughly 6.55x SDE, a multiple that only makes sense once you separate the real estate value from the operating business. The seller is exiting to focus on other projects and the listing explicitly calls for an energetic, hands-on owner-operator or family, which tells you the current economics likely assume owner labor rather than a fully staffed management layer.

Why we like it

Fuel plus a high-margin C-store with hot food is a resilient, cash-generating model that holds up through downturns because people keep buying gas, cigarettes, lottery, and quick meals. The stated $85K to $90K of monthly merchandise carries much higher margins than fuel, which is where the real profit sits.
The $540,000 in rental income from a restaurant tenant and the station is a genuine differentiator that layers contracted, semi-recurring cash flow on top of the volatile fuel and retail lines. That rent stream materially de-risks the deal versus a pure pump-and-store operation.
The real estate is included: a 5,500 SF building on a full acre at a major highway exit in fast-growing Dallas County. Owning the dirt gives you financing collateral, control over your occupancy cost, and long-term land appreciation independent of the operating business.
Highway-exit location with heavy traveler traffic plus newer equipment (eight double-sided pumps and a fast diesel pump for trucks) reduces near-term capex risk and supports fuel volume. Diesel capability opens truck traffic, a higher-ticket customer that many urban stations cannot serve.

How to improve it

Audit and reprice the C-store and hot food program in the first 90 days, since merchandise carries the highest margins and is fully within your control. Optimizing planogram, hot food menu, and daypart offerings can lift in-store gross profit without touching the fuel side.
Pressure-test and re-market the $540,000 rental income to ensure leases are current, escalating, and fully occupied. Extending the restaurant tenant lease and adding CAM recoveries would harden this cash flow and directly boost the property's standalone value.
Push loyalty and repeat capture at the pump with a fuel rewards and app-based promotion program to convert one-time highway travelers into return C-store visits. Even a small increase in inside-store conversion per fueling customer compounds against 80,000 gallons of monthly volume.
Scrutinize labor and shrink, given the seller frames this as needing a hands-on owner-operator, which signals current economics lean on owner labor. Building a reliable shift-manager structure lets you protect margin while reducing personal time on-site over years two and three.
Expand ancillary and rebate income by renegotiating vendor rebates, adding or upgrading ATM, amusements, air, and considering car wash or additional QSR licensing if the acre allows. These high-margin add-ons drop almost entirely to the bottom line.
Separate the real estate economics explicitly by modeling market rent for the operating business against the property. Financing the dirt through SBA 7(a) or a conventional CRE loan and running the operations as a tenant clarifies true operating returns and creates refinance optionality.

Diligence notes

Break the $1.1M cash flow into its parts: fuel margin, C-store margin, hot food, and the $540,000 rent. You need to know how much of SDE is durable rental income versus volatile fuel spread before you accept the 6.55x multiple.
Get an independent real estate appraisal on the acre and 5,500 SF building, since the asking price is 'plus inventory' and clearly bundles significant land value. Knowing the RE value tells you the implied multiple on the operating business alone, which changes the entire underwriting.
Verify fuel supply and branding agreements, including any volume commitments, image requirements, and remaining term. Branded fuel contracts can carry capex obligations and pricing constraints that a buyer inherits.
Order a Phase I and ideally Phase II environmental assessment on the underground storage tanks and confirm tank age, compliance, and any leak history. UST liability is the single largest hidden risk in gas station deals and can be a deal-killer.
Confirm the restaurant tenant's lease terms, payment history, and whether the $540,000 rental figure is contracted or aspirational. If a large tenant is month-to-month or behind on rent, a meaningful chunk of the cash flow story is at risk.
Reconcile reported fuel gallons and merchandise sales to actual POS, fuel supplier statements, and tax returns. Gas station listings frequently quote gross fuel sales in ways that obscure true retained margin, so tie every number back to verified records.

Source

Originally listed on BizBuySell. View original listing →