Begginer questuion! Financing for building a shopping center.

[Jonathan Navarrete]

Hello! We have a few vacant lots in a very attractive location in Texas. They just built an H-E-B (Grocery Store) in front of our lots. I was planning in a near future to build a Shopping center, but I dont know where to start to get finance for such project.

[Greg Dickerson]

Originally posted by @Jonathan Navarrete:

Hello! We have a few vacant lots in a very attractive location in Texas. They just built an H-E-B (Grocery Store) in front of our lots. I was planning in a near future to build a Shopping center, but I dont know where to start to get finance for such project.

You get financing for projects like this from local and regional commercial banks. Once you decide the project will work you need to put together a complete package  including your financials, business plan, plans and specs, GC contract etc for the bank.

First you need to do a quick feasibility exercise to determine if the project will work financially. Start with the potential gross income and work backwards from there.

Check with the city or county planning and zoning department to get an idea of what you can build and what is required for all approvals including site plan and building permits, proffers, water/sewer tap fees, bonding requirements, inspections and CO process and time frame for all approvals.

You also need to check with the utility companies and get an idea of availability and cost estimates from them for water, sewer, power, gas, cable, installation and connection requirements, tap fees, hookup charges, transformer location and relocation, power line and power pole relocation issues. Check to see if you have to install any manholes, fire hydrants, curb, gutter, sidewalks, street signs, street lighting any specific street design or access requirements, Check DOT requirements for access, stop lights and permits, traffic studies, DWQ requirements for permits, permit fees and time frames.

Once you have an idea of what you can build and what is required in terms of permitting and infrastructure you want to talk to some civil engineers, architects and commercial general contractors that do the type of projects and build the type of buildings you want to build so you can get an idea of costs, time frame and requirements.

This is a broad overview of the process and your civil engineer can handle all of this but it's good for you to know exactly what's required.