High Volume Gas Station with Property in Tupelo, MS!

Description

Gas station and convenience store for sale in Tupelo, Mississippi with the underlying property included. The business generates revenue from inside convenience-store sales and fuel and is currently operated by a tenant.

Sales profile

• Average inside sales: approximately $85,000 per month
• Average fuel volume: approximately 35,000 gallons per month
• Existing convenience-store customer base
• Recurring local and passing traffic

The seller reports strong margins on inside sales. Buyers should review product-level margins, fuel statements and historical financials to determine actual store profitability.

Current operating structure

The business is currently operated by a tenant. A buyer may choose to continue with a tenant structure or operate the store directly, subject to the existing lease or operating agreement.

Any projected savings from owner operation will depend on the tenant arrangement, staffing requirements and expenses assumed directly by the buyer.

Fuel agreement

A new Rack+1 jobber agreement with a 20-year term is expected to be executed at closing.

The seller states that once the current fuel-brand agreement expires, the jobber will pass the benefits of the new brand agreement to the buyer. The buyer should review both the existing brand agreement and the proposed jobber contract before closing.

Particular attention should be given to pricing, branding requirements, volume commitments, incentives, equipment obligations, assignment provisions and termination rights.

Property

• Location: Tupelo, Mississippi
• Land area: approximately 1.39 acres
• Building size: approximately 2,279 sq. ft.
• Visible roadside location with convenient access

Buyers should separately evaluate the real estate, including title, property taxes, zoning, building condition and environmental history.

Area

The seller reports an average daily traffic count of approximately 11,099 vehicles, local population growth of roughly 2.2% annually and median household income of approximately $53,000.

The property is near several major Tupelo traffic generators, including North Mississippi Medical Center, The Mall at Barnes Crossing, schools, apartment communities, retail centers and restaurants.

The seller also cites proximity to the Elvis Presley birthplace, Itawamba Community College's Tupelo campus, Walmart and the Lee County Courthouse. Traffic, demographic, visitor and enrollment figures should be independently verified if material to the acquisition.

Regional access

• Approximately 25 minutes from Pontotoc
• Approximately 40 minutes from New Albany
• Approximately 50 minutes from Oxford
• Approximately 1 hour 50 minutes from Memphis
• Approximately 2 hours from Birmingham

Growth

• Increase owner involvement
• Improve inside-store merchandising
• Review food and beverage categories
• Optimize fuel pricing and purchasing
• Increase local marketing
• Develop additional ancillary revenue sources where permitted

Due diligence

Buyers should verify inside sales, fuel volume and margins, tenant payments or operating terms, payroll, inventory, equipment ownership, real estate value and historical tax returns before closing.

Fuel-related diligence should include the proposed 20-year Rack+1 agreement, current brand contract, future branding terms, underground storage tanks, environmental records, fuel-system compliance and responsibility for pumps and other equipment.