SPECIAL-USE and UNIQUE REAL ESTATE
Financing Special Purpose Commercial Real Estate
Not every commercial property fits neatly into a lender’s checklist. From bowling alleys and car washes to cold storage facilities and vineyards, special-purpose properties are built for specific uses, and that uniqueness can make financing a challenge.
Traditional banks often view these assets as risky due to their limited adaptability and the high cost of converting them to general use. But here’s the good news: specialized lenders and SBA-backed programs are stepping up to support these unique investments.
What Is a Special Purpose Property?
These are properties designed for a single, specific function—think gas stations, funeral homes with crematoriums, or sports arenas. Because they’re not easily repurposed, lenders may hesitate to fund them without a strong business plan and proven borrower credibility.
SBA 504 Loans: A Smart Solution for Unique Projects
One of the most powerful tools available today is the SBA 504 Loan Program, designed for large capital investments that promote business growth and job creation. It’s especially helpful when conventional financing falls short.
Key Features:
- Up to $5 million in long-term, fixed-rate financing
- As low as 15% down, keeping your cash flow intact
- 25-year amortization, no balloon payments
- No additional collateral required
- Energy-efficient upgrades may qualify for extra funding
- No cap on total project size—even deals over $25 million can qualify
These loans are issued through Certified Development Companies (CDCs) SBA-regulated nonprofits that promote local economic development.
- Be a for-profit entity operating in the U.S. or its territories
- Have a tangible net worth under $15 million
- Report average net income under $5 million (after taxes) over the past two years
- Meet SBA size standards, show solid management, and present a feasible business plan
Examples of SBA-Approved Special Purpose Properties
Here’s a sample of properties the SBA considers single-use and eligible for 504 financing:
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Single Purpose Properties
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Multi-Use Properties (10% Down)
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Amusement parks
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Art galleries
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Auto service centers
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Breweries & distilleries
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Bowling alleys
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Day care facilities
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Car washes
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Event centers
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Cold storage facilities
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Film & recording studios
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Funeral homes w/ crematoriums
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Laundromats & drycleaners
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Gas stations
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Parking lots
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Golf courses
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Preschools & Montessori schools
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Hospitals & urgent care
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Restaurants
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Hotels & motels
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Self-storage facilities
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Marinas
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Tow yards
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Mines & quarries
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Wedding chapels
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Museums
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Nursing homes
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Oil wells & railroads
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Sports arenas & theaters
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Swimming pools & tennis clubs
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Vineyards & wineries
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Let’s Find the Right Lender for Your Unique Property