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:

1/24
  • Amusement Parks

  • Bowling Alleys

  • Car wash properties

  • Cemeteries

  • Clubhouses

  • Cold storage facilities where more than 50% of total square footage is equipped for refrigeration

  • Dormitories

  • Farms, including dairy facilities

  • Funeral homes with crematoriums

  • Gas stations

  • Golf courses

  • Hospitals, surgery centers, urgent care centers and other health or medical facilities

  • Hotels and motels

  • Mines

  • Museums

  • Nursing homes, including assisted living facilities

  • Oil wells

  • Quarries, including gravel pits

  • Railroads

  • Sanitary landfills

  • Service centers (e.g., oil and lube, brake or transmission centers) with pits and in ground lifts

  • Sports arenas

  • Swimming pools

  • Tennis clubs

  • Theaters

  • Wineries

  • 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.

One Percent CRE can assist in any of the following areas:

  • NNN Lease Services

  • Investment Acquisitions & Dispositions

  • Market & Demographic Analysis

  • Feasibility Studies / Site Selection

  • Asset Re-positioning

  • 1031 Exchange Transactions

  • Landlord & Tenant Services