Commercial Real Estate Investment Specialists
Special Purpose
Special purpose commercial real estate refers to any property type that falls outside the traditional sectors. Amusement parks, churches, self-storage, and bowling alleys are all examples of CRE special-purpose facilities.
The term 'special purpose' becomes even broader from a lending standpoint with the SBA defining a special purpose property as:
"a property that is appropriate for one use or limited use: a building that cannot be converted to another use without a large capital investment."
According to their SOP, the SBA considers only the following as a limited or special purpose property:
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Amusement Parks
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Bowling Alleys
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Car wash properties
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Cemeteries
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Clubhouses
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Cold storage facilities where more than 50% of total square footage is equipped for refrigeration
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Dormitories
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Farms, including dairy facilities
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Funeral homes with crematoriums
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Gas stations
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Golf courses
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Hospitals, surgery centers, urgent care centers and other health or medical facilities
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Hotels and motels
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Mines
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Museums
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Nursing homes, including assisted living facilities
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Oil wells
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Quarries, including gravel pits
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Railroads
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Sanitary landfills
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Service centers (e.g., oil and lube, brake or transmission centers) with pits and in ground lifts
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Sports arenas
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Swimming pools
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Tennis clubs
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Theaters
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Wineries
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Marinas
The above is a comprehensive list for SBA (504 loan) however some conventional lenders may consider certain properties special use when the SBA does not. One example is a gun range as it does not fall within the above criteria, however many conventional lenders would classify it as such.
VCG can assist in any of the following areas:
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NNN Lease Services
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Investment Acquisitions & Dispositions
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Market & Demographic Analysis
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Feasibility Studies / Site Selection
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Asset Re-positioning
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1031 Exchange Transactions
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Landlord & Tenant Services