Renewed Investor Interest in California Gas Station Real Estate: An Overview of CBRE’s 23-Property Portfolio

Introduction to CBRE’s Portfolio

The investment landscape for gas station real estate in California is attracting considerable attention, thanks in part to the current market dynamics and strong historical performance of well-established operators. CBRE, a leading real estate services firm, has introduced a remarkable portfolio of 23 gas station properties for sale, spanning key markets including Los Angeles, San Diego, Riverside, and Fresno. These strategically located assets, characterized by long-term lease structures, offer both seasoned investors and newcomers a unique opportunity to capitalize on a growing sector. With a total asking price of approximately $79.36 million, this portfolio is poised to generate sustainable income and growth for potential buyers.

The Portfolio Breakdown

The gas stations in question are operated under trusted brands such as United Pacific, Rocket, and United Oil, managed by CF United LLC, an affiliate of United Pacific. The portfolio consists of properties featuring a combined 31,705 square feet of improvements situated on 17.43 acres, emphasizing the convenience and accessibility of these locations. Buyers have the flexibility to acquire individual properties or the entire portfolio, making it adaptable to various investment strategies. Notably, the properties exhibit an average of 47 years of operational history, reflecting their established presence and community engagement since the mid-1970s.

Lease Structures for Stability

One of the standout features of this portfolio is its lease structure. Each property is under an absolute triple-net lease arrangement with tenant APRO, LLC, which carries approximately 8.8 years of remaining lease term. This structure enhances the attractiveness of the investment, as the operational, maintenance, and tax responsibilities are transferred to the tenant, ensuring passive income for the property owner. Additionally, the lease includes a built-in rent escalation of 7.5% every five years, with the next increase set for 2029. Following the initial term, there are also three five-year renewal options, each with the same rental escalation setup, providing long-term income security.

Diverse Geographic Appeal

The geographical diversity of the portfolio adds another layer of value. Covering 19 cities across California, the properties are located in both urban and suburban settings—including specific high-demand areas such as Los Angeles and San Diego. This broad reach allows for the potential accumulation of wealth through consistent rental income and appreciation. Individual site pricing ranges significantly, from approximately $1.67 million for the Compton location to around $6.36 million for the Oceanside site, catering to a wide array of budget considerations for different investors.

Market Activity and Current Status

Investor confidence in the portfolio is underscored by substantial market activity. Currently, 12 of the 23 properties are under contract, indicating a strong demand for such real estate assets. Two properties—located in Pomona and Rancho Penasquitos Boulevard in San Diego—have already been closed, validating the portfolio’s market position and attractiveness. Notably, while the real estate transactions are taking place separately from the business operations, the retail network continues to be operated by CF United LLC, based in Long Beach, California. This separation ensures that buyers receive stabilized cash flow from real estate without the complexities of managing the retail operations.

Conclusion and Future Considerations

In conclusion, CBRE’s offering of the 23-property gas station portfolio presents an attractive investment opportunity in the California real estate market. With its long-term triple-net lease structures, established operational history, and diverse geographical exposure, investors can expect robust income stability and potential capital appreciation. As the gas station sector continues to evolve, this portfolio offers a unique chance to enter a market with resilient long-term demand. Those interested in participating in this opportunity should reach out promptly to the listed brokers, Thomas Carr, Ty Grenier, and Chris Bosworth, who are managing the portfolio sale.

This portfolio exemplifies the strategic value of investing in properties with strong tenant relationships and favorable lease conditions, particularly within the growing landscape of California’s gas station real estate market.