Florida Convenience Store Purchase

Our Florida-based clients just purchased another convenience store, adding to their portfolio.

Convenience store financing is still a very doable proposition, particularly if the sale of the business includes commercial real estate.

Senior Associate Ryan Dumas was pleased with the closing. Ryan said, “My clients have a strong partnership and very good business practices. They understand what’s needed to run a successful convenience store from inventory to staffing. And they also know the local marketplace very well with another C-store in the same metro area.”

Some deal details: The loan closed with no money down. The lenders were satisfied with the current business and required minimal documentation. There was one roadblock: the appraisal was a little lower than expected. But that did not prevent the closing. If you have a local or national asset, we encourage you to contact Ryan.

What to Consider in Purchasing a Convenience Store

• Location: Where are your nearest competitors and what do they offer?
• How will you differentiate yourself in the marketplace? Do you need to consider upgrading signage or inventory? If you don’t sell gas, how will you compete with stores that do?
• Will the store operate as a franchise or be independent? What are the benefits and drawbacks of each of these decisions?
• Will you retain current employees or hire new ones? How stable is the local employment pool?
• How hands-on will you have to be as an owner/operator, especially during the first year of ownership? Are you prepared to be onsite regularly if necessary?
• Crunch the numbers: How profitable has this store been before? Calculate the COGS (cost of goods sold). Compare the COGS to other nearby properties.
• Do you have a general idea of the value of the commercial real estate? Determine if the purchase price seems realistic.
• What will you do differently in the future to enhance revenue and keep expenses down?
• If you aren’t already, be sure that you receive monthly financial statements including balance sheets from the current owners.
• Know your business: its statistics, its regular payrolls costs, anticipated insurance premiums, and other regular and occasional expenses.
• Is there upcoming deferred maintenance that will become your responsibility? How will you pay for them?
• Hire an attorney. This is a very big step and you will be spending money and have financial responsibilities. An experienced commercial real estate attorney protects you from typical roadblocks.

Why Choose GRP Capital?

Our GRP Capital team specializes in crafting financing solutions tailored to each client’s unique goals. We even have experience with lender dropouts and critically timed funding needs.

Whether you’re purchasing, refinancing, or building from the ground up, our extensive network of lenders ensures you’ll find funding that aligns with your goals and cash flow needs.

Here’s what sets us apart:

• We save you time by researching and identifying the best funding options for your project.
• Our expertise spans various loan products—including non-recourse loans, SBA loans, bridge loans, and conventional financing—so you can navigate even the most complex transactions confidently.
• Beyond lending, we provide strategic guidance on operational decisions that drive long-term business success.