BP

BP gas stations for sale.

How BP-branded fuel supply agreements, image obligations, and net-lease cap rates shape the value of a BP gas station on both sides of the deal.

Key takeaways
  • Branded fuel assets nationally trade near a 5.6% cap rate (about 5.58% with fuel income, 6.87% without fuel), with state markets ranging from Florida near 5.11% to weaker markets at 6.0% to 6.5% and higher.
  • A BP deal turns on the fuel supply agreement, branded-image obligations, and whether supply runs directly or through a jobber, all of which affect price and financeability.
  • Real-estate-inclusive BP stations price around 8x EBITDA (7x to 9x in premium markets), while business-only deals run 2.5x to 4.0x EBITDA.
  • SBA 7(a) financing tops out at $5M with a 15% minimum equity injection for special-purpose fuel sites, and a Phase I ESA ($1,800 to $3,500) is required.
  • C-store inside sales are roughly 30% of revenue but about 70% of profit, so in-store performance often matters more to value than fuel volume alone.

Buying or selling a BP-branded gas station means working inside a major-brand fuel supply structure that shapes value on both sides of the deal. A BP location carries brand-image standards, canopy and pump identity requirements, and a fuel supply agreement that runs through BP or its jobber distributor. Those terms drive how the site prices, how a lender underwrites it, and who competes to buy it. Branded fuel deals nationally trade near a 5.6% cap rate with fuel income, closer to 6.87% on store-only income, with the spread between asset quality, lease structure, and location doing most of the work. Whether you are positioning a BP site to sell or underwriting one to acquire, the brand contract and the real estate have to be read together.

What a BP gas station deal involves

A BP gas station sale almost always combines three assets: the real estate, the fuel supply contract, and the convenience store business. How those pieces are packaged determines the price and the buyer pool. A fee-simple deal with the dirt, building, and a long fuel supply agreement is the most valuable structure and prices around 8x EBITDA, reaching 7x to 9x in premium markets. A business-only sale, where the buyer takes over operations and the brand contract but not the land, runs 2.5x to 4.0x EBITDA.

The branded supply agreement is the connective tissue. It sets minimum gallon commitments, branded-image standards, and the term that a buyer inherits. Read it before anything else, because it controls both the cap rate and the financing path. Our buy-side and sell-side teams structure these deals around that contract.

Fuel supply, branding, and image obligations

A BP site operates under a branded fuel supply agreement, sourced either directly or through a jobber distributor who holds the brand rights and resells fuel to the operator. That agreement carries branded-image obligations: canopy and pump identity, signage standards, store appearance, and periodic reimaging or upgrade requirements the operator funds. Buyers should price those capital obligations into the deal, since a near-term reimage can absorb a year or more of profit.

The contract also sets minimum monthly gallon commitments. Fuel itself runs thin: 2025 fuel gross margins averaged 40-plus cents per gallon but net fuel profit is only a few cents per gallon. The store is where money is made, with in-store items at 20% to 40% margins. Review the supply terms with our jobber fuel supply agreement guide and the branded vs unbranded comparison.

Who buys BP gas stations

BP stations attract three distinct buyer types. The first is the owner-operator, often a single-store buyer stepping up, since roughly 60% of the country's 152,000 C-stores are single-store operators. These buyers want the dirt, the brand, and a hands-on income that often nets $70K to $100K per year and can reach $100K to $500K by site.

The second is the passive net-lease investor who wants a tenant on a long lease and a clean cap rate, frequently a 1031 exchange buyer parking proceeds in a fuel asset. The third is the regional operator or jobber adding sites to an existing network and capturing supply margin. Each prices the same building differently. See our branded station listings and NNN gas station listings, and the who buys gas stations guide.

How to value a BP gas station

Two methods anchor a BP valuation. For real-estate-inclusive deals, the cap rate method applies. Branded fuel nationally trades near 5.6% (about 5.58% with fuel income, 6.87% without fuel), and state markets vary widely: Florida is tightest near 5.11%, Texas about 5.63%, the Carolinas 5.0% to 5.5%, Tennessee 5.4% to 5.75%, and weaker markets 6.0% to 6.5% and higher.

For the operating business, the multiple method applies: 4.0x to 7.0x EBITDA for combined fuel and store, or 2.5x to 4.0x for business-only. Throughput-based pricing of $0.05 to $0.30 per gallon of monthly volume is a useful cross-check, with a busy urban site doing 100,000 to 150,000 gallons per month. Run the numbers in our cap rate calculator and valuation calculator, and review what makes a good cap rate.

How to buy a BP gas station

Start with financing, because it sets your price ceiling. SBA 7(a) lends up to $5M and is the common path for special-purpose fuel sites, requiring a 15% minimum equity injection (10% to 15% down), real estate terms up to 25 years, and June 2026 rates around 9% to 11.5% APR variable, with closings in 30 to 90 days. Conventional financing demands 30% to 40% down, and many banks avoid underground storage tanks due to CERCLA liability, with closings in 30 to 60 days.

A Phase I ESA ($1,800 to $3,500, ASTM E1527-21) is required for SBA fuel deals and confirms tank and soil condition. Walk the due diligence checklist, compare paths in our SBA vs conventional guide, and start a search through our buy-side desk.

How to sell a BP gas station

Selling a BP station starts with a clean valuation and a documented fuel supply agreement, since buyers and their lenders price directly off the contract term and minimum gallon commitments. Assemble fuel volume reports, in-store sales by category, tank testing and compliance records, and the branded-image status so reimaging obligations do not surprise a buyer mid-deal.

Typical sale timelines run 3 to 6 months. Business broker commissions are 10% to 20% on business-only deals and roughly 6% to 10% on real-estate-inclusive transactions. Sellers holding the real estate should also weigh a sale-leaseback, which separates the operating business from the property and can capture a sharper cap rate on the dirt. List with our sell-side team and review the closing process guide before going to market.

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FAQ

BP stations: common questions

Branded fuel assets nationally trade near a 5.6% cap rate, about 5.58% with fuel income and 6.87% on store-only income. Rates vary by state, from Florida near 5.11% and Texas about 5.63% to weaker markets at 6.0% to 6.5% and higher. The exact rate depends on the lease structure, fuel supply term, location, and store performance.
Pricing depends on the structure. Real-estate-inclusive BP deals run around 8x EBITDA (7x to 9x in premium markets), business-only deals run 2.5x to 4.0x EBITDA, and combined fuel-plus-store businesses run 4.0x to 7.0x EBITDA. Throughput pricing of $0.05 to $0.30 per gallon of monthly volume is a useful cross-check. Use our valuation calculator to model a specific site.
Yes. SBA 7(a) lends up to $5M and is the common path for fuel sites. Special-purpose gas stations need a 15% minimum equity injection (10% to 15% down), with real estate terms up to 25 years and June 2026 rates around 9% to 11.5% APR variable. A Phase I ESA is required, and closings typically run 30 to 90 days.
The fuel supply agreement controls that. A BP site operates under a branded supply contract, sourced directly or through a jobber, with minimum gallon commitments and branded-image obligations covering signage, canopy, and store appearance. A buyer inherits those terms, so review the contract closely before deciding to keep, renew, or exit the brand.
Typical sale timelines run 3 to 6 months from listing to close. Business broker commissions are 10% to 20% on business-only deals and roughly 6% to 10% on real-estate-inclusive transactions. Having fuel volume reports, in-store sales data, tank compliance records, and the supply agreement ready upfront keeps the timeline on the shorter end.
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