Gas Station Feasibility Study in the Minneapolis-St. Paul-Bloomington, MN-WI Metro Area

Real estate behind many gas station loans

Gas stations in the Minneapolis-St. Paul area differ from most cells in the share of real estate behind them: of 85 loans, 63 carry the 7(a) label and 22 the 504 label. Approvals between FY2017 and FY2026 total $70.2 million gross, ranking the area 12 of 600 nationally and gas stations 11 of 39 among local classes. The location quotient of 0.59x puts the class well below the national share, and the median of $580,000 is only 0.55x the national median.

The quartile edges are $239,000 and $1.0 million. A franchise flag attaches to 27.1% of loans. The record crosses a state line: Hennepin MN has 22 loans, Anoka MN 17, Dakota MN 12, Ramsey MN 9, Sherburne MN 6, Wright MN 5 and Pierce WI 5. A study should say whether the project sits in Minnesota or Wisconsin, because state rules on fuel, tanks and licensing differ.

A class that includes truck stops

The index code that holds gas stations lacking a convenience store also holds truck stops and travel centers, so the figures blend small neighbourhood stations with large highway sites. A median of $580,000 therefore describes no single kind of project. The study should declare what the client is building or buying, and avoid leaning on a blended average.

Holders

On the 504 side, Amplio Economic Development Corporation shows 7 loans and $10.2 million, and WBD, Inc. shows 7 loans and $3.7 million. Sunrise Banks National Association holds 10 loans worth $4.8 million. SBA files record holdings and say nothing of what a lender will want.

Cancelled approvals sit at no less than 12.8%, and the same 12.8% once undisbursed loans are counted. The charge-off rate and some yearly counts are withheld, with no zero implied. A study should address environmental condition and fuel-supply terms early.

A gas station study should test fuel volume against competing stations on the corridor, the in-store sales that carry margin, environmental condition of the site, supplier terms, and coverage at a loan near $580,000. Fuel-station loans from Hennepin, Anoka, Dakota, Ramsey, Sherburne, Wright and Pierce make up the 85, each county matched to the July 2023 delineation; a station whose county fails the match is in no metro, so 85 is a minimum.