Kilgore Convenience Store &
For Sale
Contact for pricing
2516 STATE HWY 42 N, Kilgore, TX 75662
Operating convenience store and gas station with upside potential.
Property Size2,880 SF
Lot Size1.48 Acres
Price / SF$381.94
Days on Market102
Property Features for 2516 STATE HWY 42 N
General Information
Standard status
Active
Size
2,880 SF
Lot size
1.48 Acres
Property subtype
Retail, Business for Sale
Investment Type
Owner/User
Building Details
Year Built
1961
Stories
1
Units
1
Listing Agency:
Full Circle RE
Listed By:
PRATIK PATEL · License #0832283
Source:
Crexi
Added: May 20
Changed: Aug 22
Last Checked: Aug 29 at 4:27AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Full Circle RE
Investment Insights
Based on property information with market context.
This is an opportunity to acquire a fully operational convenience store and gas station in Kilgore, Texas. The property, situated on approximately 1.48 acres, includes a 2,880 square foot building. The business has multiple revenue streams, including inside sales, lottery, gaming machines, fuel sales, and ATM income, with an operational kitchen/deli. The fuel infrastructure has been upgraded with newer Gilbarco pumps and refurbished tank systems. Renovations have been made to the roof, pumps, coolers, and equipment. There is potential for an owner-operator or family-run business to increase profitability and grow inside sales. The store has the potential to capture additional market share due to underperforming nearby competition. Additional opportunities include adding U-Haul services, Amazon lockers, expanding deli/kitchen offerings, increasing gaming machines, and adding tobacco/smoke shop inventory. The property is located at 2516 STATE HWY 42 N, KILGORE, TX.
Key Highlights
- Multiple Revenue Streams: Benefit from a convenience store, gas station, lottery, gaming machines, ATM, and operational kitchen/deli.
- Strong Upside Potential: Increase profitability and grow inside sales, especially as an owner‑operator.
- Upgraded Fuel Infrastructure: Features newer Gilbarco pumps and refurbished tank systems.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$50,463
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.59%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,009,260
$1.0M
Cap Rate 7%
$720,900
$720.9K
Cap Rate 9%
$560,700
$560.7K
Market Conditions
NOI Build-Up for 2,880 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$71.9K $24.96/SF
− Vacancy
−$4.6K −$1.60/SF
EGI
$67.3K $23.36/SF
− OpEx
−$16.8K −$5.84/SF
NOI
$50.5K $17.52/SF
Area
Gregg County, TX
Vacancy
6.40%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,009,260
Cap Rate 7%
$720,900
Cap Rate 9%
$560,700
Alternative Uses
Best Use
Specialty Retail
$720.9K
$630.8K – $841.1K
NOI $50,463 @ 7.0% cap · market cap 4.59%
Second Best
Retail
$557.3K
$487.6K – $650.2K
NOI $39,010 @ 7.0% cap · market cap 3.55%
Theoretical Best
Hotel Hospitality
$2.17M
$1.90M – $2.53M
NOI $151,848 @ 7.0% cap · market cap 13.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
262
Businesses Nearby
Explore this area
Business Placement
Demographics for 75662, TX
25,002
Population
9,474
Households
2.6
Avg Household Size
37
Median Age
18%
College-Educated
83%
High-School Grad
126.8 sq mi
ZIP Area
197
Density / Sq Mi
$65,926
Median Household Income
$37,027
Median Earnings
$1,051
Median Rent
$165,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Gas station - Operating convenience store and gas station with upside potential.
Where is this gas station located?
The property is located at 2516 STATE HWY 42 N Kilgore, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Multiple Revenue Streams: Benefit from a convenience store, gas station, lottery, gaming machines, ATM, and operational kitchen/deli.; Strong Upside Potential: Increase profitability and grow inside sales, especially as an owner‑operator.; Upgraded Fuel Infrastructure: Features newer Gilbarco pumps and refurbished tank systems.
