RaceTrac runs large-format convenience stores concentrated across the Southeast, with high-volume fuel sales and a deep in-store offer that drives most of the profit. For buyers and sellers, the brand sits in the NNN c-store category that institutional and 1031 capital actively pursues. A RaceTrac deal usually comes in one of two forms. The first is the real estate with a corporate or franchise tenant on a long-term net lease, priced on a cap rate. The second is an operating store sold as a business, often with the dirt, priced on a multiple of cash flow. The right structure depends on whether you want passive yield or an operating asset. Either way, the credit behind the lease and the fuel volume at the site decide the price.
What a RaceTrac Deal Involves
A RaceTrac transaction is shaped by the deal type. A net-leased site is an income investment. You buy the real estate, a tenant pays rent, and the price reflects the cap rate the market assigns to that credit, lease term, and location. An operating store is a different animal. You step into fuel margins, in-store sales, payroll, and the lease or fee position on the land.
RaceTrac sites are large-format with multiple fuel positions and a sizable store, so volume matters. A busy urban station moves 100,000 to 150,000 gallons a month against a US average near 4,000 gallons a day. Underwriting starts with throughput, in-store revenue, and the quality of the income stream. Review our due diligence checklist and the NNN gas stations for sale before you commit.
Cap Rates and Credit
NNN c-store cap rates average about 5.6% nationally, roughly 5.58% with fuel and 6.87% without fuel. Geography drives the spread. Florida is tightest near 5.11%, Texas runs about 5.63%, the Carolinas price 5.0% to 5.5%, and Tennessee sits 5.4% to 5.75%. Weaker secondary markets clear at 6.0% to 6.5% and higher.
Tenant credit is the other lever. For comparison, Wawa trades 4.83% to 5.20%, 7-Eleven 5.00% to 5.40%, Murphy USA near 5.13%, and Circle K 5.35% to 5.65%. RaceTrac sits in the same large-format c-store tier, so price the lease on its term, guarantor strength, and rent bumps. Run scenarios on our cap rate calculator and read what is a good cap rate for a gas station.
Why NNN Investors Target the Brand
Net-lease buyers want passive income with minimal management. A RaceTrac on a long-term absolute net lease delivers that. The tenant covers taxes, insurance, and maintenance, and the owner collects rent. The category appeals to 1031 exchange buyers who need a stable replacement asset on a tight clock, 45 days to identify and 180 days to close from sale closing.
The economics behind the lease are durable. C-store items run 20% to 40% margins, and in-store sales drive roughly 70% of profit on about 30% of revenue. Fuel pulls traffic even when net fuel profit is only a few cents a gallon. For exchange buyers, absolute NNN leases with 15 to 20 year terms are ideal replacements. See NNN gas station investing and the 1031 deadline calculator.
How to Value a RaceTrac
Valuation follows the deal structure. A leased asset is valued by dividing net operating income by the market cap rate. A site with the real estate and the business included trades near 8x EBITDA, and 7x to 9x in premium markets. A business-only sale, where the land is leased rather than owned, runs 2.5x to 4.0x EBITDA, with smaller stores at 2.0x to 3.5x SDE. Combined deals can also land in a 4.0x to 7.0x EBITDA range depending on what is conveyed.
Fuel volume gives a useful sanity check. The market often values throughput at 0.05 to 0.30 dollars per gallon of monthly volume. Model both methods on the valuation calculator and read how to value a gas station.
How to Buy a RaceTrac
Financing a fuel site requires more equity than standard commercial real estate. Many conventional lenders avoid underground storage tanks because of CERCLA liability, so conventional deals often need 30% to 40% down and close in 30 to 60 days. The SBA 7(a) program caps at 5M dollars, requires a 15% minimum equity injection for special-purpose gas stations, allows real estate terms up to 25 years, and closes in 30 to 90 days. June 2026 SBA rates run about 9% to 11.5% APR variable.
Every fuel deal needs a Phase I ESA, 1800 to 3500 dollars under ASTM E1527-21, which is required for SBA fuel financing. Start with the SBA 7(a) guide, compare options in SBA vs conventional, and reach our buyer representation team.
How to Sell a RaceTrac
Selling well starts with clean financials and a clear story on fuel volume, in-store sales, and the lease or fee position. The structure you choose drives the buyer pool. A net-leased package attracts passive and 1031 capital priced on cap rate. An operating sale attracts owner-operators priced on cash flow. A sale-leaseback lets an operator unlock the real estate value while keeping the store.
Plan for a typical 3 to 6 month timeline. Business broker commissions run 10% to 20% on business-only deals and about 6% to 10% on real-estate-inclusive deals. Environmental review and tank status need to be addressed early because they affect both buyer financing and price. List with our seller advisory team, explore a sale-leaseback, or read how to sell a gas station.
