Unbranded Gas Station & C-Store, Ontario CA, 15-Year Lease

$540K

SDE

6.3x

Multiple

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Full Editorial Writeup

This is an unbranded gas station and convenience store in Ontario, California (San Bernardino County), operating on a leased site at $8,900 per month including NNN, with 15 years remaining on the lease and the option to extend. The station pushes roughly 150,000 gallons of fuel monthly at a stated 35 cent pool margin, and runs an in-store business doing $80,000 to $85,000 monthly at a 42% markup. It also earns an extra $1,500 per week from a U-Haul rental concession, income the seller says is not even baked into the $40,000 monthly net profit figure.

The positioning is notable for two reasons. First, it is unbranded with no fuel supply contract, meaning the operator can shop for fuel and keep the full pool margin instead of being locked to a major oil company's pricing and volume requirements. Second, a brand new McDonald's has opened next door, which drives incremental foot and vehicle traffic to the corner. The store has new tanks and four dispensers, sits on a 22,000 sq ft lot with a ~1,500 to 2,000 sq ft store, and has clear upside from adding lottery, beer, and wine, none of which currently exist.

The deal is priced at $3,400,000 against $540,000 of stated EBITDA, a 6.3x multiple, which is aggressive for a leased (not real estate included) unbranded station. SBA financing is reportedly approved with 30% down, and the reason for sale is a partnership dispute. Inventory of roughly $120,000 sits on top of the asking price, while $100,000 of FF&E is included.

Why we like it

The unbranded, no-fuel-contract structure is the real edge here: the operator captures the full 35 cent pool margin on ~150,000 monthly gallons rather than surrendering it to a major oil supply agreement. That flexibility to source cheapest fuel is worth real money and separates this from the typical branded ARCO or Chevron site.
Gasoline and convenience staples are about as recession-resistant as retail gets. People buy fuel, drinks, and snacks in every economic climate, and the added U-Haul concession throws off a steady ~$1,500 per week that the seller claims is not even counted in the stated $40,000 monthly net.
The brand new McDonald's next door is a genuine traffic catalyst. National QSR anchors pull consistent daily volume to a corner, and co-located fuel and convenience stores tend to capture spillover fill-ups and impulse purchases from that captive stream.
Clear white-space upside exists: no lottery and no beer or wine today, both of which are high-margin, high-frequency traffic drivers that a new owner can add. Combined with new tanks and four dispensers, the physical plant is modern enough to scale sales without near-term capex.

How to improve it

Add beer and wine licensing immediately. Alcohol is one of the highest-margin, highest-frequency categories in convenience retail, and its absence is leaving obvious dollars on the table given the foot traffic profile next to a McDonald's.
Introduce lottery sales, which cost almost nothing to add and pull recurring, habitual foot traffic into the store multiple times per week. Lottery buyers routinely attach a drink, snack, or fuel purchase, lifting the entire basket.
Optimize fuel buying now that there is no supply contract. Set up relationships with multiple unbranded jobbers and rack suppliers so you can consistently buy at the lowest available cost and protect or widen that 35 cent pool margin.
Push the C-store mix toward higher-margin categories: fresh food, hot coffee, fountain, and grab-and-go. At $80,000 to $85,000 monthly and 42% markup there is room to lift both ticket and margin by reworking the planogram around the new traffic.
Formalize and expand the U-Haul concession and evaluate adding ATM, air/vacuum, and vending. These bolt-on revenue streams are near-pure margin and require minimal labor or space on a 22,000 sq ft lot.
Lock down and lengthen the lease terms in writing before close. With no real estate in the deal, the entire enterprise value rests on the lease, so securing the 15 years plus renewal options and capping NNN escalations is essential.

Diligence notes

Verify the $540,000 EBITDA and the claimed $40,000 monthly net profit against actual fuel invoices, POS reports, and filed tax returns. Seller-stated margins on a leased, revenue-undisclosed listing are the single biggest risk, and the 35 cent pool margin and 42% store markup both need documentary proof.
Scrutinize the lease itself: confirm the full 15-year term, renewal options, exactly what the $8,900 NNN covers, escalation clauses, and any assignment or change-of-control restrictions. Since no real estate transfers, a weak or short lease guts the value at a 6.3x multiple.
Understand the partnership dispute driving the sale. Confirm there are no liens, pending litigation, or ownership claims that could cloud title to the business assets, licenses, or the U-Haul and fuel supply relationships.
Confirm the environmental status of the new tanks and dispensers, including installation dates, warranties, UST registration, and any past contamination or remediation history. Underground storage tank liability can be catastrophic and must be resolved before close.
Test-drive the 6.3x price against the reality that no real estate is included and the station is unbranded. Comparable leased gas station operations typically trade at lower multiples, so validate whether the U-Haul and growth upside justify the premium or whether there is room to negotiate.
Validate the McDonald's-driven traffic claim with actual pre- and post-opening volume data if available. Confirm the fuel gallons trend and store sales are stable or growing rather than a one-time bump, and check the local competitive set of nearby stations.

Source

Originally listed on BizBuySell. View original listing →