APPLE VALLEY — A 2,737 square foot AM/PM convenience store and ARCO gas station with 16 pumps sold, on September 10, for $5.7M. The sale of the gas station, located at 15333 Rancherias Road, indicates that people with money believe in the High Desert according to Progressive Real Estate Partners Agent Victor Buendia.
“This sold quite higher than it’s previous sale,” said Buendia. “It becomes part of the new comps for appraisals which is good for all the other commercial property values and good for Apple Valley and the High Desert economy.”
Buendia represented both the seller and the buyer in the transaction. He says his buyer, a doctor, sold all of his Del Taco stores and wanted to get into a gas station business.
“During the pandemic lockdown, people with convenience stores did extremely well,” said Buendia. “When a lot of restaurants closed, working people opted to go into the convenience stores for hot food.”
Buendia said he met with the buyer and went on to negotiate the deal.
“It’s typical for a good number of people to be involved with this type of transaction,” said Buendia. “The buyer’s information has to be sent to the Arco owner, Marathon Petroleum. The buyer has to go through 30 day training for this franchise. They also do an interview to make sure they meet criteria.”
The buyer initially wanted to obtain financing through the Small Business Administration, but due to a backlog with the PPP loans, they decided to go with a normal commercial loan.
“The sellers took $5.7 million for both the business and the real estate,” said Buendia.
This isn’t the first sale for Buendia in the High Desert. He has also sold a gas station in Hesperia. He specializes in gas station and car wash property sales.
“I’m a car guy — cars really attracted me to this speciality, ” said Buendia. “A gas station business has unique problems in the transaction and I enjoy solving problems.”