Looking for investor partners to loan $700,000 for my start up wedding and event venue in a fully remodeled 1908 historic home. The property is a beautiful 3.5 acre parcel in the heart of a quaint small South Carolina town with 5300 sq ft house and over 4000 sq ft of garage space that will be converted into a permanent venue space.
The property is zoned general business and I am finishing the final steps with the City to have the property ready to market. I have been approached by multiple event planners wanting to use the property as a venue. I even had one bride want to have a wedding at the house before renovations were complete!
I purchased this house over a year ago and have completed a massive, necessary renovation to the property. I have replaced all mechanicals, roof, fully remodeled and added bathrooms, fully renovated the kitchen as well as paint, flooring, exterior repair, etc. on this home. It is effectively a 2022 home in a 1908 body.
I need to refinance the property, pay off my current short term renovation loan and get cash out of the property. I was planning to work with a local commercial bank on this refinance but the bank has stopped lending on commercial cash out refinances. The other local banks I have talked to need to see 12 months of actuals not projected proforma. I also approached SBA for a loan. They LOVED the proforma and the property but they do not have cash out loan options and their fees were incredibly high.
I have talked to 2 investor friendly lending institutions who would love to lend on the property but I am running into a road block by not having a residential lease since the property is an event venue.
This property as an event venue boasts a very good proforma both in Year 1, start up, and Year 2, growth. This proforma has been reviewed by a local bank as well as another banker who writes SBA loans for event venues. The SBA banker validated that our proforma looks solid and is conservative.
Property Summary:
- Thoughtfully renovated home from 1908
- 5300 sq ft house with 5 bedrooms 4.5 bathrooms
- 3.5 acre property with large back yard containing 100 year old trees
- 3000 sq ft - 6 bay garage to be renovated into a simple yet stylish event venue space negating any need for a tent on site
Customers:
The South Carolina upstate is a growing market for population as well as weddings. Last year the average wedding cost was $26,000. The number of weddings in one county in the upstate was 2300.
Team:
Front Row Events: Currently Front Row Films ranked as the number 1 wedding film and videography company in the Greenville/Spartanburg area in 2021 and 2022. Front Row Films will be expanding to include full event planning and booking.
Cur8: Corporate event planning specializing in leadership and development to host retreats and single day conferences at the Historic Hampton House
Historic Hampton House: Team running the home has a 26 year experience owning and operating rental properties. The team will oversee all aspects of maintaining the property in top notch condition.
Competition:
Within a 30 mile radius of the property there are only 2 properties with comparable aesthetics including rooms for the bridal party or family/friends to book for the event.
Property use summary:
- The property will be rented as an event venue. The property name is Historic Hampton House 1908. Our desired public launch is October 2022
- The City where the property is located is SO Excited about this use for the property. The sheriff, historical society, chamber of commerce, city leaders have been incredibly supportive as we have started the process of using the space as a venue. I have a meeting set with the fire chief on the 20th of September, after that meeting I will be able to submit my business license application and fee.
- The property will be rented on an event by event basis from 2 different event planning entities.
- The property has a studio apartment above the garage that was part of our fix & flip loan. This unit will be rented to a long term tenant. We will be listing the unit for rent in mid September. Rent rate will be around $850 - $900.
- Front Row Events - An established wedding photography and videography company who are branching into full event planning will be using the property as their primary venue. I will be signing a vendor agreement type contract that will include a fixed pricing per event.
- Cur8 - A startup leadership development and Diversity & Inclusion consulting and Event company will be using this property as their primary venue. Mainly filling weekdays and non wedding weekends. They will also manage small events at the property; things like office, retirement and birthday parties. I will be signing a vendor agreement type contract with Cur8 that will include a fixed price per event.
Proforma details:
Year 1 - Projections
NOI: $128,820
Cash flow based on $700K loan @7%: $72,934.59
DSCR: 2.31
Projected Property valuation: $2.1M
Year 2 - Projections
NOI: $175,720
Cash flow based on $700K loan @7%: $119,834.59
DSCR: 3.14
Projected Property valuation: $2.9M
Detailed proforma available upon request.
Loan details:
- Cash out refinance with loan amount of $700,000
- Property ARV is $1.5M. Property valuation based on business proforma $2.1M
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