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

$540K

SDE

6.3x

Multiple

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Full Editorial Writeup

This is an unbranded (independent) gas station with an attached convenience store in Ontario, California, operating in San Bernardino County for roughly 15 years. The station runs 4 multi-product dispensers with new underground tanks, moving about 140,000 gallons of fuel monthly at a stated pool margin of 50 cents per gallon, alongside a 1,500 square foot C-store doing $80,000 to $85,000 in monthly sales at a 42% markup. The site sits on a 22,000 square foot lot and is operated under a long-term lease at $8,900 per month including NNN, with 15 years remaining and room to extend.

The business is being sold as a leased operation, not a real estate deal. The seller markets material upside: no lottery and no beer/wine license currently in place, both of which can be added to lift margin and traffic. A McDonald's is reportedly opening next door, which the seller argues will drive incremental foot and fuel traffic.

The headline economics are muddled. The listing quotes $540,000 EBITDA against a stated net profit of only $40,000 per month ($480,000 annualized), while asking $3,400,000 with an SBA loan pre-approved at 30% down. Reason for sale is a partnership dispute, and inventory of $120,000 is separate from the asking price.

Why we like it

Fuel and convenience retail is genuinely recession resistant because commuters still buy gas and everyday C-store items regardless of the economic cycle. The station moves a consistent 140,000 gallons monthly plus $80,000-plus in store sales, giving two independent revenue streams under one roof.
The lease is a real asset here: 15 years remaining at $8,900 per month including NNN, with the option to extend. Locking in occupancy cost at that level for that long removes a major variable and protects margin against future rent escalation.
There is clear organic upside without capital-heavy construction. The site has no lottery and no beer or wine sales today, and both are addable license categories that historically lift both direct margin and store traffic that pulls through fuel volume.
Being unbranded means no franchise fee, no mandatory brand fuel supply contract, and freedom to shop for the cheapest rack price, which is exactly what produces the 50 cent per gallon pool margin the seller cites. New tanks and 4 recently updated dispensers reduce near-term capex and environmental risk.

How to improve it

Add beer and wine as fast as licensing allows, since alcohol is one of the highest-margin and highest-frequency C-store categories and directly increases trips and basket size. Model the license cost against the incremental gross profit before committing.
Apply for a California lottery retailer license to capture commission income and, more importantly, the foot traffic lottery buyers bring, which cross-sells fuel, drinks, and snacks. This is low-cost, high-frequency traffic that the current owner is simply leaving on the table.
Reprice and re-merchandise the C-store to push higher-margin categories (packaged beverages, tobacco alternatives, prepared snacks) now that a McDonald's is opening next door and drawing more daily traffic to the corner. Track basket data weekly to confirm the mix is shifting toward margin.
Reconcile and standardize the financials immediately, because a $540,000 EBITDA claim sitting next to a $40,000 monthly ($480,000 annual) net profit figure signals inconsistent bookkeeping. Build a clean monthly P&L that separates fuel margin, store margin, rent, labor, and card fees so a buyer can underwrite honestly.
Tighten fuel buying by shopping unbranded rack prices across suppliers and timing loads to price dips, since even a couple cents per gallon on 140,000 gallons monthly is meaningful annual profit. Consider a fleet or B2B fuel account to add volume against fixed overhead.
Install or upgrade a modern POS and back-office system to control shrink, which is the silent killer in owner-managed C-stores. Cameras plus inventory discipline typically recover 1 to 3 points of store margin.
Evaluate adding air/vacuum, ATM, and quick-service food or a small kitchen to monetize the new traffic from the neighboring McDonald's and the 22,000 square foot lot. Prioritize additions with fast payback and low labor intensity.

Diligence notes

The pricing is the central issue: $3,400,000 for a leased (not owned) gas station implies a 6.3x multiple on a disputed EBITDA number, yet stated net profit is only $40,000 per month. Demand 3 years of tax returns, fuel supplier statements, and monthly bank deposits to determine which earnings figure is real, because the gap between $480,000 net and $540,000 EBITDA changes the deal entirely.
Verify the fuel margin claim of 50 cents per gallon and 140,000 gallons monthly against actual fuel invoices and pump meter readings, since fuel margin is highly volatile and a quoted pool margin can be cherry-picked from a strong month. Confirm whether the margin is before or after credit card processing fees, which routinely eat a large chunk of fuel profit.
Scrutinize the lease document line by line: confirm the true remaining term, renewal options, rent escalators, NNN pass-through mechanics, and any assignment or landlord-consent clauses that could block the sale or reset rent. A leased station with no real estate has zero terminal asset value if the lease is not durable, so this is deal-critical.
Investigate the partnership dispute stated as the reason for selling, because a forced or contested sale can create title, liability, and closing complications. Confirm both partners can legally convey the business and that no litigation or liens attach to the operating entity or the tanks.
Confirm the environmental and regulatory status of the new tanks and dispensers, including UST registration, compliance certificates, and any prior contamination history on the 22,000 square foot lot. Environmental liability at a fuel site can dwarf the purchase price, and a leased operator can still inherit remediation exposure.
Validate the McDonald's next door claim and its timeline with the city or a permit search, since projected traffic uplift is being used to justify price but is unbuilt and unproven. Underwrite the deal on current cash flow, treating any neighboring-tenant traffic bump as upside rather than baseline.

Source

Originally listed on BizBuySell. View original listing →