Special Purpose Commercial Mortgage

A special purpose commercial mortgage is a loan designed for properties that serve a unique function and cannot easily be repurposed for other uses. Since these properties often require custom infrastructure and equipment, financing terms may include higher down payments, shorter loan terms, or stricter underwriting requirements.

"Multi-family 5+ real estate: where one investment means five (or fifty) doors of opportunity, steady cash flow, and a built-in community!"

DEFINING TERMS

What are special purpose mortgages, and how do they work?

A special purpose commercial mortgage is a loan for properties with unique uses, like hotels, gas stations, or medical centers, that are hard to repurpose. Lenders assess risk based on cash flow, business viability, and industry demand, often requiring higher down payments and stricter terms.

1

Unique Property Types

Financing is tailored for properties with a single-use function, such as hotels, car washes, and medical centers.

2

Stricter Lending Terms

Due to limited resale potential, lenders may require higher down payments and shorter loan terms.

3

Business Viability Matters

Approval depends on the property’s cash flow, industry demand, and borrower experience.

Why choose Tom Sebring for retail commercial real estate?

Our personalized approach and extensive expertise make us the trusted choice for achieving your financial goals. We take the time to understand your needs, providing tailored strategies to grow and protect your wealth with confidence.

COMMON SCENARIOS

Hotels & Motels

Gas Stations & Convenience Stores

Car Wash Facilities

Theaters & Entertainment Venues

Religious Buildings

Medical & Healthcare Facilities

Funeral Homes & Cemeteries

Self-Storage Facilities

Auto Dealerships & Repair Shops

Amusement Parks & Recreation Centers

Assisted Living & Senior Care Facilities

Bowling Alleys & Skating Rinks

Marinas & Boat Storage Facilities

Truck Stops & Travel Centers

HOW WE CAN HELP

We provide tailored solutions for leasing, purchasing, or developing retail spaces, ensuring your investment aligns with your goals. Let us guide you to success.

COMMON QUESTIONS

Practical knowledge to make the most of our team’s expertise.

Contact us now to schedule a consultation and take the first step toward peace of mind. Our team is ready to assist you in crafting a plan that reflects your values.

  • Examples include hotels, car washes, funeral homes, amusement parks, and self-storage facilities.

  • Yes, SBA 504 and SBA 7(a) loans can help finance special purpose properties, especially for small businesses.

  • Challenges include industry-specific downturns, zoning restrictions, and the difficulty of repurposing the property if the business fails.

  • While possible, conversions can be costly and require zoning changes, making resale or repurposing challenging.

  • Yes, these properties have a niche market, so selling can take longer and may require a buyer in the same industry.