Station + property
Buying a gas station with the real estate
This page is for buying the property and the operating business together — the land, the building, the canopy and tanks, and the going concern. If you are buying only the business and leasing the site, that is a different loan and a different page.
Step 1 of 5
Buy or refinance commercial property
About the property
Start with what it is and what you're trying to do.
How this kind of purchase is financed
When the real estate is part of the deal there is something durable securing the loan, which is why these transactions usually get longer terms and lower payments than a business-only purchase. The building and land carry the file; the business explains whether it can service the debt.
Most of these fund through the SBA. The 7(a) programme can cover the property, the business, the equipment and working capital in one loan, and the 504 programme pairs a bank loan with a fixed-rate loan from a Certified Development Company for the real estate portion. Both exist for an owner-operator, which is what a station buyer usually is.
Where the SBA does not fit — a borrower who will not occupy it, a purchase above the programme limits, or a timeline that cannot wait — conventional commercial lenders and private lenders through our network take the deal instead, generally with a larger deposit and a shorter term.
What lenders look at
Fuel volume
Gallons a month, and the trend across the last few years. This is the first number a lender reads on a station.
Inside sales and margin
What the store sells and what it makes. Inside margin frequently matters more to a lender than fuel margin does.
The tanks
Age, material, monitoring and history. Steel tanks near the end of their life change the conversation and sometimes the price.
Environmental condition
A Phase I is required. A Phase II follows if the Phase I finds anything. This usually sets your closing date.
The property itself
Location, traffic count, lot size, access, and whether the site supports what it earns.
Your experience
Running a station or a c-store before matters a great deal here, because you are taking on the operation as well as the building.
The brand or supply agreement
Who supplies the fuel, on what terms, and what obligations transfer with the site.
Your contribution
Special-purpose property calls for a larger share from the buyer than an ordinary building would.
Questions we get asked
Can one loan cover the property, the business and the equipment?
Often, yes — the SBA 7(a) is built to do exactly that, and it is the most common structure we see on these. Whether it fits depends on the programme rules, the lender and your file.
How is this different from buying just the business?
Completely different loan. With the real estate there is durable security, so terms are typically longer. Without it, the lender is lending against a going concern and a lease. We keep separate pages for the two.
What is a Phase I and do I really need one?
It is an environmental assessment of the site's history and condition. For a fuel station it is required — no lender will fund without one — and if it finds something, a Phase II follows.
What if the tanks are old or steel?
It affects the environmental work, sometimes the price, and which lenders will look at it. Tell us early rather than late.
Do I need to have run a station before?
It carries real weight when the operating business is part of the purchase. Lenders vary on how much. Be straight with us about it — it changes who we approach, not whether we help.
How much of my own money will I need?
More than on an ordinary commercial building, because this is special-purpose property. The exact figure depends on the lender and the programme, and we will show you what the lenders we would approach actually publish.
Can I refinance or take cash out of a station I already own?
Yes. The environmental requirements still apply, and the same lenders look at it.
Who this page is for
- Buyers purchasing a station and its property together.
- Operators buying the site they currently lease.
- Owners refinancing a station they already hold.
- Buyers of a dealer site who want the real estate as well as the business.
- Anyone weighing whether to buy the property or only the operation.
What this financing covers
- The land and the building.
- The going concern — the operating business itself.
- Fuel equipment: dispensers, tanks, canopy, point of sale.
- Working capital to carry the first months of inventory.
- Improvements or a rebrand after closing.
- Refinancing an existing station loan, or taking cash out of one.
The words you will hear, in plain English
- Special-purpose property
- A building that suits one use and few others. A station is the classic example, which is why appraisal, environmental work and the deposit all differ from an ordinary retail building.
- UST
- Underground storage tank. Their age, material and monitoring history drive the environmental review and can drive the price.
- Phase I ESA
- An environmental site assessment: records, history and a site visit, with no drilling. Required on a fuel station.
- Phase II ESA
- The follow-up when a Phase I finds something — soil and groundwater sampling. It adds time and cost, and occasionally reshapes the deal.
- Going concern
- The business as an operating whole, including its goodwill, rather than the bricks alone. It is valued differently from the real estate.
- Owner-occupied
- You will run the business on the site rather than lease it to someone else. It is the condition most SBA programmes are built around.
- SBA 7(a)
- The SBA's general programme. It can fund the property, the business, the equipment and working capital in a single loan.
- SBA 504
- A structure pairing a bank loan with a fixed-rate loan from a Certified Development Company, used for the real estate and long-life equipment.
How these deals are put together
Illustrative structures to show how these purchases are usually assembled. Not offers, not quotes, and not terms available to anyone in particular — programmes, eligibility and figures vary by lender and by transaction.
Station and property, one loan
A buyer taking on both the site and the operation. An SBA 7(a) can wrap the real estate, the business value, the equipment and some working capital together, which is why it is the common answer for an owner-operator.
Splitting the real estate out
On a larger purchase, a 504 structure puts the real estate on a long fixed-rate loan alongside a bank loan, while the business portion is handled separately. More moving parts, often better terms on the property.
Speed over structure
A site under contract with a short deadline and an environmental report still outstanding. A private or bridge lender can close on the real estate, with a refinance into permanent financing once the environmental work is complete.
Buying the site you already lease
An operator with a track record on the site buying the freehold. The operating history is already yours, which is usually the strongest version of this file.
What to prepare
Gather these early. On a station it is almost always the environmental and the financials that set the pace, not the loan paperwork.
- Purchase contract for the property and the business
- Two to three years of business financial statements
- Business tax returns for the same period
- Fuel volume reports — gallons by month
- Inside sales figures and product mix
- Your personal financial statement and tax returns
- The existing environmental reports, if any exist
- Tank details: age, material, monitoring, testing records
- The brand or fuel supply agreement
- Your resume or operating history
- Entity papers: articles, operating agreement, EIN letter
- Proof of funds for your contribution
From application to closing
- 1
Tell us what you are buying
Property, business, or both — and where it is. That single answer decides which lenders we approach.
- 2
The numbers
Fuel volume, inside sales and the asking price. We put them against what the lenders on our desk write for stations.
- 3
Application and documents
The list above. Financials and fuel volumes are the two that hold files up, so start there.
- 4
Environmental
A Phase I is ordered. If it raises anything, a Phase II follows. Plan your timeline around this, not around the loan.
- 5
Appraisal and valuation
The real estate is appraised as special-purpose property; where the business is part of the purchase, it is valued separately.
- 6
Underwriting
The lender reviews the operation, the property, your experience and your contribution. Conditions come back and we work them with you.
- 7
Closing
Final figures, signing, funding — and the transfer of licences, permits and the supply agreement alongside.
What goes wrong
Leaving the environmental until late
The single most common cause of a blown closing date on a station. Start the Phase I as early as the contract allows.
Financials that do not reconcile
Fuel volumes, inside sales and the tax returns need to tell one story. Where they do not, underwriting stops until they do.
Not knowing the tank position
Age, material and monitoring history. A buyer who cannot answer this looks like a buyer who has not done their diligence.
Assuming a house-sized deposit
Special-purpose property asks for more. Budget for it from the start rather than discovering it at term sheet.
Ignoring the supply agreement
Brand obligations and remaining terms can transfer with the site and can bind you for years. Read it before you are committed.
Mixing up the two purchases
Buying the business and buying the property are different loans. Deciding which one you are actually doing is the first question, not a detail.
Related financing
- Buying the business without the property →If you are leasing the site rather than buying it — a different loan.
- Commercial real estate →Other commercial property types and how they are financed.
- SBA 7(a) →The programme most of these purchases use.
- SBA 504 →For the real estate portion at a long fixed rate.
- Bridge and private money →When the timeline will not wait for a conventional process.
Tell us about the station
Start with what you are buying — the property, the business, or both.
Step 1 of 5
Buy or refinance commercial property
About the property
Start with what it is and what you're trying to do.
This is not an offer and not an approval. Terms are set by a lender, in writing, after underwriting, and vary by lender, by property and by file.
Get gas station financing options
Send us the site, the fuel volume and what you are buying. We will tell you which structure fits and what the environmental work means for your timeline.