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C-Store Valuations
The Convenience Retail Experts

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Our Appraisal Reports Include:


The sections below describe a few of the basic considerations in the valuation and appraisal of convenience stores and gas stations.  We hope you will find this information helpful.

You may quickly provide us with a few of the details about your appraisal and valuation request by submitting the form below.  Please be as complete as possible.  You may click the SUBMIT BUTTION to send the information electronically, or print the form and fax it to (541) 823-0079.

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Your Contact Information:
First Name:
Last Name:
Email Address:
Mailing Address:
Subject Property Information:
Your Case/File Number:
Project Name:
Street Address:
Store Size:
Land Size:
Age of Improvements:
Property Description:
Preliminary Estimate of Value:
Type of Report:
Desired Completion Date:
Purpose of Appraisal:
Other Comments:
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Our appraisals include the estimated value of the total assets of the business (TAB), which includes the tangible and intangible assets; also known as Going Concern Value.  This Going Concern Value is allocated as follows among the various contributory components.  The merchandise, food and fuel inventories are not included.
    ●Land (As if Vacant)
    ●Real Property Improvements 
    ●Furniture, Fixtures & Equipment   
    ●Business/Enterprise/Franchise Value 
Our appraisals provide an opinion of the market value for the following value premises: 

Part 1 of the Report
The fee simple estate for the tangible and intangible assets.  This value is based on market-level earnings for stores of the subject's particular physical configuration at the subject's specific location under typical management.  The fee simple value does not rely on the operator’s historic (actual) profit and loss statements.  The fee simple value is based on how a typical operator would perform with the subject’s real estate assets at the fixed location.  Because this is the fee simple value, this value is irrespective of the existing brand, supply and service contracts. 
Approaches used in Part 1 of our appraisals:
     Capitalized Earnings Approach
     ·         Developed for the Tangible Assets, Real Property.
     ·         Excess earnings estimates, if any, applied to value
           estimate of Intangible Assets.
     Sales Comparison Approach.
     ·         Developed for the Tangible Assets, Real Property.
     Cost Approach
      ·         Developed for the Tangible Assets, Real Property.
      ·         Developed for Tangible Assets, Non-Realty (FF&E).
Part 2 of the Report
The value Under Current Operations. This value is based on the business’s ability to generate earnings under the existing supply contracts, branding agreements, and historical financial performance, and current management. 
Business Operating Agreements (BOA) and branding agreements for the convenience store or gas station are not part of the recorded title to the real property.  Often these contracts do not automatically transfer with the sale of the real estate.  In many cases, these agreements either terminate upon the transfer or are renegotiated between the new parties, if the property sells.   
The value Under Current Operations assumes the existing business operating agreements remain in place and that the quality and depth of management remains unchanged.   This estimate is more of an economic performance measure, which can show for example, the current business’s ability to satisfy the debt requirements of the fee simple interest. 
The value estimate of the real estate and other physical assets of the property Under Current Operations is limited in its applicability and should not be assumed to reflect transferable market value.  In the event of foreclosure, the value Under Current Operations will likely not be realized by the mortgagee, or Deed of Trust beneficiary.
Approaches used in Part 2 of our appraisals:
      Capitalized Earnings Approach
      ·               Developed for the Tangible Assets, Real Property.
               Excess earnings estimates, if any, applied to
               value estimate of Intangible Assets.  
For the reasons above, rather than expressing a value estimate, this economic characteristic is usually included in our appraisal reports as an index.


Real estate is one part of the assets of any business enterprise.  When the real estate improvements are designed for a specific use and cannot be easily adapted to alternative uses, then the market value of the improvements is dependent upon the capabilities of the business model to be successful for the use for which they were designed. 
The fundamental observation is this:  buyers will pay more for a business that earns a lot of money, as opposed to one that does not.
The value of specially-designed retail real estate, such as convenience stores and gas stations, is residual to the business operation.  Real estate is one of the last economic claims on earnings, after cost-of-goods sold and labor, and other operating expenses.  When more money is left over after these business expenses, the value of the underlying real estate is higher.  In other words, for convenience stores and gas stations or any retail property, NOI to real estate comes from the cash register. 
This capacity for the business to generate earnings or profits is, at least to some extent, dependent upon the physical characteristics and location quality of the real estate.  This is why some buyers pay more for certain locations than for others.
The diagram below illustrates how value is created for specially-designed retail real estate, such as gas stations and convenience stores.
Using an "Earnings Capitalization" as shown here is the best way to estimate the value of convenience stores and gas stations.


The diagram above shows how real estate value is created from the earnings of the business enterprise.  This is why buyers will pay more for the real estate associated with locations that have higher earnings. 

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