NJ - Comm. Property Financing - Gas Station/C-store/Restaurant

[Amitoz A.]

Hey Guys! So first off, long time lurker first time poster, so let me start with a big thank you! I've learned so much from you guys on BP. Its a phenomenal platform for people to share their real estate insight and ideas so thank you once more. Now to my post,

I am currently seeking financing for a Gas Station/C-store/Restaurant property to buy out my partner who is no longer interested in staying on with our business as he is moving to Texas and already has investment in Houston in several hotel properties.

What I am looking for is $1.5M to buy out my partner and do a renovation at the c-store/restaurant building. The entire project for the reno will be around $500k-$750k. I'm venturing into finding capital to do the purchase but unfortunately we do not have the capital required for a traditional loan with money down. We have had offers from Quickchek and other large companies that have valued the property close to $6M.

What instead we have decided to do is try to find private money, $1.5M of which a portion will be used to buy out my partner, a portion for renovations. With that said, we would need to structure the deal in a way that we make interest only payments for 10-years and then repay the full amount. We can secure the lender's interest in the property with a 50% share in our business and once the loan is paid back we will reclaim the 50% shares back and pay off the lender.

The business itself does about $5M annually in revenue and has healthy profits. The business is located almost directly on a major highway with little to no competition in the area. That all said, we did have a slow year last year due to construction of the major overpass on the highway which diverted traffic away from our location for almost 8 months which is why we do not have the capital to go traditional financing as we had to dip into that money to sustain the business until the construction was finished (which it is as of January).

The property itself: 4 acres, ~4,500sq. ft. building with restaurant in one side, c-store on other side. Brand new pumps and canopy for gas station portion in 2009. All brand new tanks, equipment, etc. Property taxes ~$16,000 ; brand new HVAC system as of January 2018

Property is located in Central New Jersey. (exact address can be given on request)

I can offer up any more details that I might have missed please just ask.

Thank you in advance for your time and feedback!