Absentee-Owned Gas Station with Property in Tunica, MS

Description

Gas station and convenience store for sale with the real estate included. The business produces revenue from inside store sales, prepared food, fuel, an ATM and an air machine, and is currently run with limited owner involvement.

Store sales

• Average inside sales: approximately $70,000 per month
• Summer inside sales: up to approximately $90,000 per month
• Reported inside margin: approximately 35%
• Deli sales: approximately $15,000 per month

The deli is a meaningful part of current store sales. The location has a kitchen equipped with a vent hood, grill and salad bar, providing infrastructure for prepared-food service.

Fuel

• Average volume: approximately 32,000 gallons per month
• Reported margin: approximately $0.18 per gallon
• Average fuel profit: more than $5,700 per month
• Approximately 16 years remaining on the jobber agreement
• Jobber arrangement stated as a 50/50 commission split

Under the current arrangement, the seller reports that the jobber covers fuel-related credit card processing fees and handles maintenance and repairs for the fuel equipment.

The complete jobber agreement should be reviewed carefully for assignment rights, branding requirements, minimum volumes, termination provisions and responsibility for equipment.

Additional income

The ATM and air machine generate approximately $1,000 per month combined.

Lottery is not currently offered. A buyer could apply to add lottery sales, subject to Mississippi Lottery approval and any other applicable requirements.

Profit and management

• Reported net profit: more than $14,000 per month
• Reported payroll expense: approximately $12,000 per month
• Current manager pay: $15 per hour
• Current owner visits approximately once per week

The business is represented as absentee-operated under its current structure.

The seller estimates that an owner who replaces some management labor and works directly in the store could earn more than $20,000 per month. That figure is a projection and should not be treated as current historical earnings.

Property

• Building size: approximately 3,120 sq. ft.
• Real estate included in the sale
• Seller-stated cap rate: approximately 10%

Ownership of the property removes a separate landlord from the operating structure. Buyers should independently establish the value of the real estate and recalculate the stated capitalization rate using verified income and property expenses.

The seller also references potential accelerated or bonus depreciation benefits. The availability and amount of any tax deduction depend on the transaction structure, asset allocation and tax law in effect at closing and should be reviewed with the buyer's tax adviser.

Location

The property has convenient access to US-61 and is positioned to serve both local customers and travelers moving through the Tunica area.

The seller cites traffic connected with the Tunica casino corridor and nearby Memphis market. Memphis is reported to be less than one hour away, Southaven less than 40 minutes away and Jackson approximately three hours away.

Nearby uses include schools, hotels and a limited group of quick-service and local restaurants. The seller reports a median household income above $48,000 and approximately 2,000 students and faculty associated with nearby Tunica Elementary School and Rosa Fort High School. These demographic and traffic figures should be independently verified.

Customer base

The store has an existing local customer base and is reported to maintain a Google rating above four stars.

Possible improvements

• Add lottery sales if approved
• Increase prepared-food and deli volume
• Extend or adjust food-service offerings
• Increase owner involvement
• Use seasonal traffic to expand summer sales
• Add additional convenience-store categories where margins support them

Reason for sale

The seller is planning to move back to his home country.

Due diligence

Buyers should verify inside sales, deli margins, fuel gallons and commissions, net profit, payroll, ATM and air-machine income, inventory, equipment ownership, historical tax returns and current employee arrangements.

Real estate diligence should include title, taxes, zoning, building condition and environmental history. For the fuel operation, buyers should review underground storage tanks, monitoring and leak records, environmental compliance, the remaining jobber contract and responsibility for pumps and related equipment.

Any continued or additional sales of fuel, prepared food, tobacco, alcohol or lottery products will remain subject to the applicable state and local licenses and approvals.