What Changes Were Desired?


With the catering company doing well, the owners started to talk about how to expand. One of the ideas they liked the most was to open a retail space where they could sell pre-made, chef-quality meals to those in the area. It would give them a new customer base of people who wouldn’t normally order catering.


They knew it would be a lot of work but they’d been looking for more challenge. They decided to learn more about what the process would be like before deciding for sure whether to go for it or not.


The Cost of Retail Space


The first thing to delve into was how much the retail space would cost. This required planning in terms of how large the space would be, what neighborhood would be the best location, and how many customers they wanted to accommodate at one time.


After determining all of these factors, the owners determined that the full cost would be about $2,000,000. It would give them a space in a fantastic spot where potential customers were already spending their time. The space would be large enough to showcase their meals and accommodate a large number of customers.


What About Financing?


Knowing what they would need for the space and how much money it would cost, it was time to decide whether this was something to move forward with. After a few discussions, they agreed that they wanted to go for it if they could find a reasonable means of financing for the new step.


Browsing the Internet brought up several financing options, including both traditional and alternative loans. A typical business loan was one option but not the one that caught their eye. After checking out several options, they felt that commercial real estate financing was the best choice.


What Makes Commercial Real Estate (CRE) Financing Stand Out


Several things made commercial real estate financing seem like the right choice. First, it was designed specifically for obtaining real estate, which made it an easy contender. In addition, it would come with a long term length, low interest rate, and standard monthly payments.


Commercial real estate financing offers a great deal of leverage at up to 90% loan to value. When all of these things were considered together, it just made sense to choose this type of financing. They moved forward and applied for financing, excited about what the future would bring.

How Are Things Going Today?


The owners were qualified for the financing and got the money within 90 days. From there, they started to put in the hard work to create a pleasing retail space to sell some of their best recipes from the catering menu in single-serving options. The doors opened to a crowd and things have been going well ever since.


Today, the owners are enjoying the new challenge of the retail space and are happy to be sharing their delicious food with more people in the area. There are no plans to expand in the future, but they know that if that day comes, they can find financing that meets their needs.

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