All thriving communities need special-purpose businesses. Without them, there would be a lot less fun, interesting and helpful businesses to explore. However, investing in special purpose properties requires a bit of planning and preparedness.
Special purpose properties are a type of commercial real estate. Special purpose properties generate income by providing a niche good or service. They are sometimes referred to as limited use properties because they're used in a very specific type of business.
Examples of special purpose real estate in Tampa Florida include bowling alleys, family game centers and movie theatres. Sports stadiums, parking lots, amusement parks and zoos are a few other examples. These properties can be expensive to own. However, if operated correctly, they can be highly profitable.
If you are thinking about investing in a special purpose property, consider a few factors. The Small Business Administration (SBA) defines a special purpose property as \”a property that is appropriate for one use or limited use: it is a building that cannot be converted to another use without a large capital investment.\” Due to their nature, special purpose properties often have unique layouts and construction. For this reason, most special purpose properties cannot be modified without huge remodeling costs.
Because of the specific nature of special purpose businesses, the market for this type of property is often limited. Financing a special purpose property can be tricky. Additionally, banks and lenders consider special purpose properties risky investments.
To ease the process of financing a special purpose loan, you can file one or more SBA 504 loans. An SBA 504 loan can reduce your lender’s risk and increase your chances of financing.
An SBA 504 loan is a powerful loan that can help with the growth and survival of your special purpose business. This requires down payments as low as 15%. It also locks you into fully-amortized payments with fixed, below-market interest rates, and with no loan limit amounts. This allows for projects of $25 million and above to still qualify for SBA 504 loans. A loan like this will help finance the costs to purchase, construct, expand and renovation special purpose real estate. It can also finance the cost of special purpose equipment.