Buy a Gas Station in Denver, CO

The Denver Gas Station Market

Denver's population has grown steadily over the past decade, and the metro area now stretches well into the suburbs of Aurora, Lakewood, and Thornton. That sprawl means vehicle traffic is high and gas stations in commuter corridors carry real pricing power.

There are currently 51 gas station listings in and around Denver, with asking prices ranging from $139,000 on the low end to well over $200M for portfolio assets. The median sits at $750,000.

That wide price range reflects how different these assets can be. A standalone pump-only station in a secondary location is a different business entirely from a high-volume location with a convenience store, car wash, and food service.

Deal Economics

At the median asking price of $750,000 and median cash flow of roughly $198,000, Denver gas stations are trading at approximately 3.4x. That is a reasonable multiple for a stabilized asset with a fuel supply agreement in place.

A few things to pay attention to before you accept the seller's cash flow number:

Fuel margin is thin and volatile. Most independent operators earn $0.05 to $0.15 per gallon after wholesale costs. Volume matters more than margin here.

Inside store revenue is where the real money is. A station doing $2M in fuel sales might only net $30,000 on fuel, but the attached convenience store could generate $80,000 to $120,000 in additional cash flow.

Verify both streams independently. Do not rely on seller-reported totals without seeing credit card batch reports, lottery terminal reports, and lottery commission statements.

SBA Financing for a Denver Gas Station

Gas stations are SBA-eligible, but lenders add extra scrutiny around environmental liability and fuel supply contracts. Expect a more thorough lender review than you would see on a service business.

Here is how the deal math looks at the median asking price:

• Asking price: $750,000
• SBA loan (80%): $600,000
• Seller note (10%, full standby at 0% interest): $75,000
• Buyer cash (5%): $37,500
• Total equity injection: $112,500 (10% of asking price: $37,500 buyer cash + $75,000 seller note on standby)

At current SBA rates of approximately 10% to 11% on a 10-year term, annual debt service on a $600,000 loan runs roughly $95,000 to $98,000 per year.

With $198,000 in annual cash flow, that produces a DSCR of approximately 2.0x. That clears our 2x target and the 1.5x floor comfortably.

These are rough estimates based on market data. Actual terms depend on individual lender qualification and the specific asset.

One note on SDE: most gas station listings report Seller Discretionary Earnings, which can include the owner's salary addback and other one-time adjustments. Apply a 15% to 30% discount to any SDE figure before running your debt service calculations.

What to Look For in a Denver Gas Station

Fuel supply agreement. Is the station branded (Shell, Chevron, Conoco) or unbranded? Branded stations carry supply obligations but also consumer trust. Check the contract term and renewal terms carefully. Some supply agreements include volume minimums with penalties.

Environmental status. Colorado's LUST (Leaking Underground Storage Tank) program is active. Any station with older UST systems requires a Phase I environmental report and often a Phase II. A site with unresolved contamination is a no-buy until cleanup liability is quantified.

Real estate vs. leasehold. A station on owned land is worth more and easier to finance than a ground lease. If it is a lease, check the remaining term. Less than 10 years of lease coverage will create SBA lender problems.

Car wash and ancillary revenue. Denver's weather creates consistent demand for car washes. A station with an attached wash adds meaningful cash flow and differentiation. Verify wash revenue separately.

Location economics. Traffic counts matter. Denver's key commuter corridors, including Federal Boulevard, Colfax Avenue, and the I-25 frontage roads, support higher volume stations than residential neighborhood locations.

Frequently Asked Questions

How much does it cost to buy a gas station in Denver?

The median asking price for a gas station in Denver is $750,000 based on current listings. The price range runs from under $200,000 for small or distressed assets to well over $1M for high-volume locations with real estate included. Most single-location SBA-eligible acquisitions fall between $500,000 and $2M.

Can I use an SBA loan to buy a gas station in Colorado?

Yes, gas stations are SBA 7(a) eligible in Colorado. The equity injection requirement is 10% of the purchase price, structured as 5% buyer cash plus a 5% seller note on full standby. Environmental reports are required, and lenders will scrutinize fuel supply agreements and UST age before approving the loan.

What cash flow should I expect from a Denver gas station?

Median cash flow across current Denver-area listings is approximately $198,000 per year. That figure typically blends fuel margin, convenience store net income, and any ancillary services. Always verify cash flow through credit card settlement reports and supplier invoices, not just tax returns or seller-provided summaries.

What is the biggest risk in buying a gas station?

Environmental liability is the primary risk. Underground storage tanks can leak, and cleanup costs in Colorado can reach $500,000 or more depending on contamination severity. Always require a Phase I environmental assessment and budget for Phase II if the Phase I flags anything. The second biggest risk is a fuel supply agreement that locks you into unfavorable pricing or volume commitments.

How long does it take to close a gas station acquisition with SBA financing?

A typical SBA-financed gas station acquisition takes 60 to 90 days from signed letter of intent to close. Environmental review, title work on real estate, and fuel supply contract assignment tend to be the longest poles. Budget 90 days in your LOI timeline and negotiate a 30-day extension option.

Thinking About Buying a Gas Station in Denver?

Regalis Capital works with buyers looking to acquire gas stations and other owner-operated businesses using SBA 7(a) financing. Our deal team reviews 120 to 150 opportunities per week and knows which Denver-area listings are worth pursuing and which to pass on.

If you are evaluating a specific station or want help running the numbers before making an offer, start with a free deal assessment.

Talk to Regalis Capital about Denver gas station acquisitions