How to Price a Gas Station

[Zeb B.]

I have experience in the residential real estate market, but none in commercial real estate or small businesses. A friend of mine is looking to sell a gas station he owns in a small town in rural Oregon. We are trying to figure out an appropriate asking price. 

The building is less than 5 years old, 3 aisles, plus two walls of refrigerated drinks. There are 4 unleaded pumps and two diesel pumps. A small restaurant is attached to the gas station.  Total income and net income have both been increasing for the last few years. Gross Income last year was $2,160,000 with expenses (not including depreciation or interest) of $2 million for net income of $160,000. The owner does not put in any shifts at the store, just oversees a hired manager.

What kind of calculations would you do to come up with a value or asking price for this type of property?