The Los Angeles C-store market
Los Angeles anchors California's roughly 12,140 C-stores, second only to Texas at about 16,500. Demand is driven by heavy commuter and commercial traffic, and high-throughput corridors here can push 100,000 to 150,000 gallons per month, far above the US average near 4,000 gallons per day. Across the country about 60% of operators are single-store owners, and LA reflects that, with many independent and branded sites changing hands as owners retirerecapitalize.
The economics favor the store. Fuel gross margins averaged 40-plus cents per gallon in 2025, but net fuel profit is only a few cents per gallon. Inside sales carry 20% to 40% margins, and the C-store drives roughly 70% of profit on about 30% of revenue. See our profit margins guide and California overview.
Buying a C-store in Los Angeles
LA buyers should underwrite fuel and store separately, because the inside business carries most of the profit. A small-to-medium station owner often nets about 70,000 to 100,000 dollars per year, rising to 100,000 to 500,000 dollars by site. Financing usually runs through SBA 7(a), which caps at 5 million dollars and requires a 15% minimum equity injection on special-purpose C-stores, with real estate terms up to 25 years and June 2026 rates around 9% to 11.5% APR variable. Conventional loans ask 30% to 40% down, and many banks avoid underground storage tanks due to CERCLA liability.
A Phase I ESA, 1,800 to 3,500 dollars under ASTM E1527-21, is required on SBA fuel deals. Start with our buyer services, the valuation calculator, and the due diligence checklist.
Selling a C-store in Los Angeles
Selling in LA starts with clean financials and an honest split between fuel and store performance, because buyers and lenders price those streams differently. Business-only sales typically trade at 2.5x to 4.0x EBITDA, with smaller stores at 2.0x to 3.5x SDE. Gas-plus-store deals run 4.0x to 7.0x EBITDA, and selling with the real estate moves pricing toward 8x EBITDA, 7x to 9x in premium markets.
Plan on a typical 3 to 6 month timeline. Broker commissions run 10% to 20% on business-only deals and about 6% to 10% when real estate is included. Sellers carrying USTs should expect environmental review, so address tank records early. Begin with our seller services and the guide to increasing valueexplore a sale-leaseback.
Values and cap rates in California
National C-store cap rates sit near 5.6%, roughly 5.58% with fuel and 6.87% without fuel. Florida is tightest near 5.11% and Texas runs about 5.63%, while weaker markets price at 6.0% to 6.5%higher. Tenant credit drives the spread: Wawa trades at 4.83% to 5.20%, 7-Eleven at 5.00% to 5.40%, Murphy USA near 5.13%, and Circle K at 5.35% to 5.65%.
For California investors, dense high-credit LA sites tend to price tighter than secondary markets in the state. Per-gallon value adds 0.05 to 0.30 dollars per gallon of monthly throughput on top of store cash flow. Model your own deal with the cap rate calculator, review NNN C-store listingsread cap rates by state.