Fiduciary DeclarationFiduciary duty runs exclusively to the lender and agency — not to the borrower. Determinations are independent and never revised under commercial pressure. Non-negotiable since 1998. · International assignments accepted on a case-by-case basis — experience is global.
Program Experience
SBA Loan Feasibility Studies
Wert-Berater provides comprehensive feasibility studies for SBA 7(a) and 504 loan programs. Our approved public experience demonstrates our national footprint and expertise in delivering independent, compliant advisory services to lenders and borrowers.
Wert-Berater prepared an independent SBA 504 feasibility study for a proposed 44-room ground-up select-service hotel with café and event room in downtown Seward, Alaska. The study evaluated economic, market, technical, financial, and management feasibility against SBA SOP 50 10 8 standards, replacing the sponsor's unsupported assumptions with analyst-developed figures throughout. The determination is Feasible Subject to Stated Conditions, contingent on verification of total project cost, program-minimum equity injection, a funded two-year debt-service reserve, and nine additional documented conditions precedent.
Wert-Berater prepared an independent SBA 504 feasibility study for a proposed 120-key, new-construction, upper-midscale all-suite hotel in Montgomery County, Alabama, with a total project cost of approximately $21.9 million. The analysis evaluated economic, market, technical, financial, and management feasibility against SBA SOP 50 10 8 standards, producing a determination of Feasible — Subject to Stated Conditions following a mid-engagement capital-structure revision. Stabilized Year-3 operating DSCR reached 1.365x under the revised structure, passing the SBA 1.15x minimum, conditioned on independent equity verification, a recorded land transfer, an executed management agreement, and guarantor financial statements.
Feasibility analysis of a proposed 51,999-square-foot wellness center in Costa Mesa, Orange County, evaluated for SBA 504 construction-to-permanent financing — a large-format health, fitness, and wellness facility in one of Southern California’s most affluent and health-conscious trade areas.
What the Project Included
Membership-model revenue analysis, trade-area demographics, competitive supply mapping across the Orange County fitness and wellness market, and construction-to-permanent underwriting consistent with SBA 504 requirements for special-purpose recreational property.
Capital Structure
SBA 504 construction-to-permanent structure: senior bank construction loan converting to permanent first mortgage alongside the SBA debenture, with borrower equity injection per program minimums for special-purpose property.
Feasibility Study Challenges
Large-format wellness facilities are special-purpose buildings underwritten on the operating business, not the real estate — so the study’s weight fell on membership absorption, price-point defensibility in a market dense with boutique and big-box competitors, and the construction-period risk inherent in a 51,999-square-foot build carried on a construction-to-permanent structure.
Ground-up development of a 437-space marine and recreational-vehicle storage facility on 3.871 acres of industrial-zoned land: 350 dry-stack boat positions inside a 79,864-square-foot hurricane-rated pre-engineered metal building, plus 87 RV and trailer spaces. The site sits in FEMA Zone X (minimal flood hazard) — a meaningful underwriting distinction for coastal Florida marine assets. The construction budget was validated at $143.99 per square foot for the PEMB structure, at the low end of the applicable RSMeans range, with a 5 percent contingency.
What the Project Included
A demand-driven storage platform serving the Sarasota boating market, underwritten on a Year 1 average occupancy ramp of 47.5 percent rising to stabilization in Year 2 — deliberately conservative entry assumptions rather than stabilized-day-one optimism.
Capital Structure
Classic 50/30/20 SBA 504 stack: $11,875,000 bank first mortgage at 6.10% with one year interest-only; $7,125,000 CDC debenture at 5.45% over 20 years; $4,750,000 equity ($3,562,500 investor; $1,187,500 sponsor). Annual principal and interest from Year 2: $1,512,592.
Feasibility Study Challenges
The determination was favorable but conditioned, and the conditions were stated as conditions — not buried. The Phase I ESA was 44 months old at the study date, beyond regulatory currency, and its update was made a condition precedent to closing rather than a footnote. Three further conditions followed: lender and CDC confirmation of the SBA 504 operating-business determination, personal guaranties from all owners of 20 percent or more, and confirmation of SBA eligibility for the development management fee. The study also flagged the sponsor's dual role as developer and property manager as a governance consideration. Coverage discipline anchored the analysis: a full 49-combination stress grid across interest-rate and occupancy scenarios, every combination through +2.5 percent passing SBA minimums, with the +2.5 percent rate case still producing 1.30x.
Proposed development of a purpose-built indoor pickleball and padel sports complex at stabilization comprising 20 total courts — 18 pickleball and 2 padel — supported by mezzanine-level food and beverage service, structured league and instructional programming, and event capability within a single integrated facility. The 25-minute drive-time trade area contains 966,341 residents and 386,789 households, more than one quarter of Connecticut’s population, with median household incomes supporting premium pricing for indoor court access.
What the Project Included
The market analysis quantified a structural supply deficit: Connecticut is estimated to hold fewer than 90 dedicated indoor courts statewide, and Middlesex County only 5 to 7, against the fastest-growing sport in the United States for three consecutive years. Using a conservative planning ratio of one dedicated court per 250–300 active players, regional equilibrium demand supports roughly 190–270 courts. The study also modeled the national saturation question directly — the conditions under which court supply growth overtakes participation — concluding that cold-weather markets such as Connecticut retain premium pricing power longest because outdoor play is limited to roughly April through October.
Capital Structure
Annual debt service of approximately $783,100 was tested against a pro forma that intentionally constrains early-year coverage during the membership and league ramp-up period, consistent with SBA SOP 50 10 8 underwriting discipline, before coverage builds well above the 1.25x–1.35x SBA minimum guideline at stabilization.
Feasibility Study Challenges
Two issues carried the underwriting weight. First, ramp-up realism: the feasibility conclusion is explicitly not predicated on aggressive growth or ideal operating conditions, so the early years were modeled with deliberately constrained coverage and the conditions precedent attach there. Second, saturation risk: the study confronted the question every lender asks about a boom sport — what happens when supply catches up — and answered it with a regional equilibrium model, break-even analysis showing an approximately 24 percent revenue cushion, and stress cases holding DSCR above 2.0x in all downside scenarios tested.
Proposed development of a 102,471-square-foot refrigerated cold storage facility with 28-foot clear height and 2.77 million cubic feet of storage capacity on a 19.97-acre industrially zoned site in the Amarillo logistics corridor, positioned on Interstate 40 with rail service. The facility is designed around automated pallet handling, warehouse management software, and continuous temperature monitoring, operating a lean five-to-seven-employee model with food-safety compliance to federal regulatory and HACCP standards.
What the Project Included
Demand was anchored rather than assumed: a letter of intent from a regional dairy processor (party withheld) commits up to 25 million pounds of bulk cheese annually, with non-member volumes conservatively projected at 2 to 5 million pounds in year one. The ten-year pro forma builds revenue from $3,957,594 toward $5,174,877 across storage fees, handling and ancillary services — shrink wrapping, labeling, cross-docking — and spot-market activity, with discounted cash flow analysis at an eight percent rate supporting the financial feasibility determination.
Capital Structure
Opening long-term debt of $13,353,508 amortizing to $11,542,298 by Year 10 against fixed annual debt service of $1,185,721, with net worth building from $559,629 to $16,816,682 over the ten-year horizon as cash accumulates and principal retires. Property taxes were modeled at full assessment on the $16,000,000 construction basis with no abatement assumed, despite available county incentives.
Feasibility Study Challenges
The structural challenge was concentration: a lean automated staffing model magnifies key-person risk, addressed in the study through cross-training, redundancy in critical roles, and succession planning requirements; and the anchor-supplier relationship concentrates demand, addressed through the conservative non-member volume assumptions and competitive demand analysis for the Amarillo region.
Feasibility analysis of a travel center combining branded fuel, convenience retail, and quick-service restaurant operations on the Interstate 5 corridor at Castle Rock, Cowlitz County — the I-5 gateway between Portland and Seattle traffic and the Mount St. Helens recreation draw — evaluated for SBA 504 financing.
What the Project Included
Component-level revenue modeling across fuel gallons, inside sales, and QSR; corridor traffic capture analysis; and a complete 160-slide study supported by a 65-tab model in which every figure links to the assumptions tab — ten-year pro forma, sensitivity at ±5/10/15 percent, interest-rate stress, and the full ratio suite benchmarked against industry data.
Capital Structure
SBA 504 structure: senior bank first mortgage, CDC debenture, and borrower equity injection, with fixed-asset eligibility and occupancy requirements confirmed under the program rules.
Feasibility Study Challenges
High-coverage deals carry their own analytical burden: a 3.12x Year 1 DSCR invites the question of whether the revenue model is too optimistic, so the study’s work was defending the fuel-volume and inside-sales assumptions against corridor traffic data and industry benchmarks — proving the coverage was earned by the site, not assumed by the model. Margin compression and competitive-entry scenarios left repayment capacity intact in every case tested.
Acquisition of a two-building, 48,560-square-foot industrial property on 1.85 acres, structured as a hybrid owner-user strategy: the 28,560-square-foot front building operated as a contractor overflow logistics platform serving Bay Area specialty trade subcontractors, with the 20,000-square-foot rear building generating stabilizing triple-net lease income. Owner occupancy of 58.8 percent exceeds the SBA 504 minimum of 51 percent by 7.8 percentage points. The $13,752,000 purchase price was validated against a contemporaneous MAI appraisal of $13,800,000 and against replacement cost of $350–$500 per square foot versus the $283.20 contract basis.
What the Project Included
A 1,200-position pallet storage operation configured across five functional zones with a seven-stream service revenue model — base pallet storage, accessorial handling, reserved blocks, rush retrieval, contractor mini-bays, logistics coordination, and ancillary services — alongside the contractual NNN lease. The competitive analysis mapped six named facilities in the ten-mile market area with zero direct overlap: no existing operator provides integrated pallet storage, handling, and project tagging for the contractor segment.
Capital Structure
$6,975,702 senior first mortgage at 8.84% over 30 years (50.00%); $4,864,000 SBA 504 debenture at 4.64% over 25 years (34.86%); $2,063,000 subordinate note at 0% interest; $48,702 cash injection — total borrower contribution of $2,111,702 or 15.14% of sources. Annual debt service: $993,006.
Feasibility Study Challenges
Two analytical problems defined the study. First, SOP 50 10 8 dual-coverage discipline: passive NNN income had to be excluded from the primary operating test, so the startup logistics business alone was required to clear 1.15x — it achieved 1.72x in Year 1, and Monte Carlo simulation across 1,000 iterations showed only a 4.2 percent probability of breaching the floor. Second, pricing defensibility: the $100-per-pallet-per-week rate is 21.7 times commodity warehouse rates per square foot, so the study validated it on three independent bases — per square foot, per cubic foot, and avoided remobilization cost of $500–$2,000 per event — concluding the customer purchases logistics services, not square footage. The October 2028 rear-lease expiration was stress-tested to a 1.46x no-lease floor case.
Proposed development of a major-brand truck stop on a 6-acre parcel at the southeast corner of CA-99 and Shanks Road in Delhi, Merced County — a 4,000-square-foot convenience store with a 4,000-square-foot gasoline canopy and a 3,000-square-foot diesel canopy serving the Golden State Highway truck corridor between the Bay Area and Southern California. Year 1 sales are projected above $61,000,000, growing three percent annually, with total revenues exceeding $60,000,000 at stabilization.
What the Project Included
The market analysis was built on corridor truck-traffic counts along CA-99, a captive and diverse demand base with limited direct competition in the immediate trade area, and seasonality patterns specific to Central Valley freight movement. Fuel gross margins were set at the ten percent industry standard, the technical analysis confirmed soils, grading, and drainage suitable for cost-effective construction, and a Phase I Environmental Site Assessment completed under CEQA returned no recognized environmental conditions.
Capital Structure
Financing through a combination of equity and long-term SBA-backed debt at a conservative loan-to-value ratio, with annual debt service of $675,000 covered by projected EBITDA at better than 4.0x in every projection year — coverage headroom that holds under the cost-inflation, competition, and margin-compression scenarios tested.
Feasibility Study Challenges
High-revenue, thin-margin fuel retail lives on the margin line, so the sensitivity analysis concentrated there: per-gallon margin reduction scenarios, competitive entry, and economic-cycle stress all left debt service comfortably covered, and no adverse scenario tested threatened the ability to meet obligations. The remaining work identified by the study is execution — finalizing the SBA-backed financing structure and phasing staffing to actual traffic capture as the site ramps.
Feasibility analysis of a 17,771-square-foot luxury wedding and event venue with a 9-key boutique hotel in the Temecula Valley wine country — Southern California’s premier viticultural destination market — evaluated for SBA 504/7(a) financing on behalf of the lender and certified development company.
What the Project Included
A dual-revenue hospitality model: high-margin wedding and event bookings anchored by the wine-country destination draw, with the boutique hotel keys capturing event-driven room nights and smoothing midweek utilization. Demand was benchmarked against the regional wedding market, venue comparables, and ADR evidence from the Temecula Valley lodging set.
Capital Structure
Blended SBA 504/7(a) structure: senior bank financing, CDC debenture against the eligible fixed assets, and borrower equity injection consistent with special-purpose hospitality property requirements.
Feasibility Study Challenges
The study’s defining finding was physical, not financial: primary access runs over a one-lane unpaved road, and the analysis flagged it as the highest-priority conditional item — a constraint bearing on guest experience, emergency access, weather resilience, and ultimately the premium pricing the pro forma depends on. The determination was structured so the access condition had to be resolved before the otherwise favorable economics could be relied upon.
Refinance of a repositioned hospitality asset transformed from a legacy 25-unit roadside motel into a 60-unit hybrid resort combining lodge rooms, rustic cabins, modern cabins, tiny homes, and Airstream-style accommodations, with approximately $7.0 million already deployed by ownership since 2022. Rather than relying on borrower-provided historicals, the study built a market-supported underwriting framework: differentiated ADRs of $176–$248 by unit type producing a blended stabilized ADR of approximately $217, occupancy ramping from 57.0 percent to a stabilized 64.5 percent, and stabilized revenue of approximately $3.19 million with NOI of $1,147,623 after a 2.0 percent reserve allowance — a 36.0 percent margin.
What the Project Included
A mixed-format, experience-driven lodging platform positioned above traditional motels, competitive with boutique and short-term-rental supply, and below luxury resort pricing in a small, seasonal Northern California tourism market driven by Mount Shasta, river access, and outdoor recreation.
Capital Structure
$4,990,438 bank first mortgage at 8.100% over 300 months; $4,436,000 SBA debenture at 5.725% — total refinance debt of $9,426,438 with annual debt service of $800,260.
Feasibility Study Challenges
The study's defining task was distinguishing stabilized supportability from ramp-period risk — and stating both without softening. Projected coverage of 0.96x in Year 1 and 1.17x in Year 2 falls below the 1.25x lender-comfort threshold, so the study quantified the required interim DSCR reserve at $295,827 ($235,666 Year 1; $60,161 Year 2) rather than adjusting assumptions to make the problem disappear. When SBA-related review requested a coverage case excluding the twelve Airstream units, the addendum recomputed the deal on a 48-unit basis — stabilized DSCR of 1.16x, below threshold through Year 6 — and concluded plainly that the no-Airstream case is not supportable on the original stabilized basis without additional structural credit support or reduced leverage. The determination was narrowed, not revised, under underwriting pressure.
Redevelopment of an existing Hudson River waterfront marina site in Catskill, Greene County, into a professionally managed boutique hospitality operation combining upland luxury suites with purpose-built floating lodging units — an integrated, revenue-generating hospitality business rather than a passive real estate investment, intentionally positioned between high-end boutique hotels and experiential lodging. The absence of a full-service restaurant reduces operational complexity, and staffing is structured to comparable boutique benchmarks.
What the Project Included
The floating lodging units are the competitive core: a product type scarce in the regional market and increasingly sought by experiential travelers, centrally owned and managed unlike peer-to-peer floating accommodations. The study evidenced the typology premium from a national comparable set of floating-lodging operators, supporting an ADR adjustment of $150–$250 over land-based equivalents, with phased deployment of additional floating units providing concept scalability. Eligibility screens confirmed compliance with the program’s ineligible-business rules and, where an Eligible Passive Company structure is used, conformance to the applicable operating-control and lease-term requirements.
Capital Structure
A proposed SBA-guaranteed loan of approximately $6,991,250 — roughly 75 percent of total project cost — with the balance funded through borrower equity of approximately $2,308,750. Sources and uses were reviewed to confirm all costs relate directly to the eligible operating business, with no allocation to speculative land holding or passive investment.
Feasibility Study Challenges
The underwriting tension was typology risk against coverage cushion: a floating-lodging product with no direct local comparable had to be priced from national evidence, while early-year DSCR of 1.26x sits closer to program minimums than the stabilized 1.53x — so the ten-year DSCR analysis, marina and waterfront permitting pathway (state environmental and federal dock permitting), and phased capital deployment carried the conditions.
Feasibility analysis of a 34-site waterfront RV resort at Navarre on Florida’s Emerald Coast — between Pensacola Beach and Destin in one of the Gulf’s strongest beach-tourism corridors — evaluated for SBA 504 financing. Direct water frontage positions the property at the premium end of the regional RV market.
What the Project Included
Small-site premium-rate underwriting: with only 34 sites, the revenue case rests on rate rather than volume, so the analysis benchmarked nightly and seasonal rates against the waterfront RV comparable set, modeled the Gulf Coast seasonality curve, and quantified the snowbird long-stay segment that carries shoulder-season occupancy.
Capital Structure
SBA 504 structure: senior bank first mortgage, CDC debenture, and borrower equity injection consistent with special-purpose outdoor-hospitality property requirements.
Feasibility Study Challenges
Coastal Florida underwriting starts with wind and water: flood-zone determination, named-storm insurance cost and availability, and elevation requirements bear directly on both the development budget and the operating expense load, and a 34-site property has no scale to absorb surprises — so the study’s discipline was in the expense side and the downside cases as much as the premium-rate revenue argument.
Ground-up development of an express tunnel car wash at 2424 West Main Street in Alhambra, California, in the heart of a primary arterial retail corridor. The total development budget of approximately $7,480,000 is financed under the SBA 504 program through a $3,225,000 bank loan in first position, an SBA debenture, and a $1,289,000 borrower equity injection on fixed 25-year amortizations.
Market Position
The site’s trade area presents favorable demographics within the primary ring and a favorable competitive position: the analysis examined corridor traffic, membership-model penetration achievable at the location, and alignment with the industry’s documented success factors for express-tunnel operations in dense Southern California submarkets.
Entitlement Record
Drawings and conditional use permit approvals formed part of the evaluated record, placing the project beyond the entitlement-risk stage that defeats many car wash developments in California jurisdictions and allowing the construction budget to be assessed against an approved scope.
Feasibility Study Challenges
Express car wash underwriting in Southern California turns on saturation: membership economics are strong until a competitor opens inside the drive-time ring. The competitive analysis therefore mapped existing and pipeline tunnels within the trade area, and the coverage analysis was tested against membership-penetration assumptions held below the levels achieved by mature comparable sites.
New construction of a 4,971-square-foot convenience store with sixteen fueling positions, two quick-service food concepts, and electric-vehicle supercharging at a signalized arterial intersection in one of Palm Beach County's fastest-growing residential corridors. Year 1 pro forma: $13,480,000 total revenue and $1,287,214 EBITDA, producing an operating DSCR of 3.87x against the 1.15x SBA minimum — 4.67x standalone before accounting for the companion station across the intersection.
What the Project Included
Ground-up development: fuel canopy and sixteen positions, full-format convenience store, dual QSR build-outs, EV supercharging infrastructure, site work, and signalized-corner access improvements.
Capital Structure
$5,052,768 permanent loan (including capitalized construction interest) on $4,920,000 of construction-to-permanent financing; borrower equity well above the SBA 10% minimum.
Feasibility Study Challenges
The analytically interesting problem was cross-corner cannibalization: the same intersection hosts a companion development on the opposite corner, so the study modeled the station both standalone (4.67x DSCR) and with the companion operating (3.87x) — feasibility holds decisively in both states. Monte Carlo simulation across 10,000 iterations varying fuel volume, margin, store revenue, QSR revenue, and expenses produced a 0.0 percent probability of breaching the SBA floor. Phase I ESA remained pending at the determination date.
Demolition and new construction of a 4,623-square-foot convenience store with fourteen fueling positions and a national-brand quick-service restaurant at the same signalized intersection. Year 1 pro forma: $15,720,182 total revenue and $1,732,117 EBITDA, producing an operating DSCR of 4.65x — 304 percent above the SBA minimum.
What the Project Included
Full redevelopment: demolition of the existing improvements, fuel canopy with fourteen positions, branded convenience store, in-store QSR, and complete site reconstruction at the corner.
Capital Structure
$4,596,198 permanent loan at 6.50% over 25 years ($372,407 annual debt service); $2,075,000 borrower equity — 31.7% of TPC, more than three times the SBA minimum injection.
Feasibility Study Challenges
Monte Carlo simulation across 10,000 iterations — simultaneously varying fuel gallons ±25%, fuel margin $0.35–0.65, store revenue ±25%, QSR revenue −50% to +20%, and operating expenses — produced a minimum DSCR of 2.14x and a 0.0 percent probability of breaching 1.15x: even the worst randomly generated combination never approached the floor. Open items at the determination date were the pending Phase I ESA and final lender/CDC identification.
Proposed development of a best-in-class privately owned wedding and event venue on approximately 29.6 acres of gently rolling, well-drained land on Old Clearpond Road in Conway, Horry County — roughly twenty minutes from the Myrtle Beach tourism engine that generates more than 19 million annual visits. Within a 100-mile radius the Myrtle Beach–Conway region hosts over 6,000 major weddings annually plus corporate, nonprofit, and social events, against limited high-quality competitive supply.
What the Project Included
Revenue is diversified across venue rental at approximately 65 percent of total, bar and beverage service at 25 percent, and add-on services at 10 percent, with event counts ramping from 133 in the first full operating year to 290 by Year 10 and total sales building from $3,951,850 to $9,125,000 across the same horizon. The technical analysis confirmed nearly 30 buildable acres with favorable soils, dual ingress and egress, and minimal topographic or environmental encumbrance, and the operating plan was benchmarked against industry data for repayment, liquidity, and profitability.
Capital Structure
A capital stack blending conventional bank and SBA 504 loans with owner equity of approximately 15 percent of the total — satisfying lender and SBA injection requirements — producing total annual debt service of $451,403 beginning after project completion. The opening balance sheet carries $5,450,000 of debt against $950,000 of equity, with the debt-to-equity ratio improving from 5.74 to 1.03 by 2028 as principal retires and earnings accumulate.
Feasibility Study Challenges
Event venues are absorption stories, and the study’s credibility rests on the ramp: the event-count buildout from 133 to 290 annual events was tied to quantified regional demand rather than aspiration, scenario and sensitivity analysis confirmed economic feasibility even under conservative demand projections, and Monte Carlo testing supported the liquidity and ratio profile. Seasonality of coastal South Carolina event demand and the post-pandemic rebound in consumer event spending were modeled explicitly rather than assumed away.
Feasibility analysis of a pickleball clubhouse and social venue in Buda, Hays County — on the fast-growing southern edge of the Austin metropolitan area — evaluated for SBA 7(a)/504 financing. The concept pairs dedicated court play with a club-format social, food, and beverage operation, positioning the venue as a membership destination rather than a court-rental commodity.
What the Project Included
Membership and programming revenue modeling across leagues, open play, lessons, and events, with the social and beverage operation underwritten as a margin driver in its own right; trade-area demographics for the Austin MSA’s southern growth corridor; and competitive mapping of the regional indoor and outdoor court supply.
Capital Structure
SBA 7(a)/504 structure sized to the real-estate and equipment program, with borrower equity injection per program requirements for special-purpose recreational property.
Feasibility Study Challenges
Early-cycle recreation concepts carry category risk in both directions — explosive participation growth against an unproven local revenue model — so the underwriting question was whether the membership and social-spend assumptions would hold once the novelty curve flattens, answered through conservative ramp assumptions and benchmarking against the operating clubs that preceded this market.
Feasibility analysis of a 100-site destination RV resort on 55 acres in Van Zandt County on the Interstate 20 corridor east of Dallas, evaluated for SBA 504 financing under SOP 50 10 8 — a ground-up outdoor hospitality development positioned for the East Texas leisure-travel and long-stay markets.
What the Project Included
Site-by-site revenue modeling across transient, weekly, and extended-stay segments; capture-rate and leakage analysis quantifying the trade-area demand the resort can realistically absorb; and a complete 242-slide study with rebuilt global pagination, supported by a fully linked financial model through the standard sensitivity, rate-stress, and ratio suite.
Capital Structure
SBA 504 structure: senior bank first mortgage, CDC debenture, and borrower equity injection, with the indicated value of $11,116,839 producing a 34.8 percent loan-to-value — a collateral cushion rarely seen in ground-up hospitality.
Feasibility Study Challenges
A favorable determination carrying twenty-three conditions precedent is a determination that does its job: the economics cleared comfortably — 2.758x Year 3 coverage on conservative absorption — but ground-up RV development stands or falls on execution items, so the conditions enumerated the permitting, utility, construction, and operational prerequisites one by one rather than waving at them. The capture-rate work carried the market case, tying projected occupancy to quantified regional RV demand rather than industry averages.
Feasibility analysis of a 7,200-square-foot dual-tenant retail building in Grain Valley, Jackson County — a fast-growing Interstate 70 suburb on the eastern edge of the Kansas City metropolitan area — evaluated for SBA 504 financing. The program pairs an owner-operated wine and spirits store with a national-franchise quick-service food tenant in a single new-construction building.
What the Project Included
Trade-area demand analysis for both retail formats, franchise-system underwriting for the quick-service component, construction and equipment budgeting carried at line-item level, and a 271-slide master study assembled with full cross-referencing between the ownership structure, square-footage program, and financial schedules.
Capital Structure
SBA 504 structure: senior bank first mortgage, CDC debenture, and borrower equity injection, with the equipment budget for both tenant spaces carried inside the eligible project cost basis.
Feasibility Study Challenges
Two businesses under one roof and one loan means every inconsistency compounds: the engagement included a dedicated consistency revision pass reconciling the ownership structure, standardizing the square-footage program across every schedule, aligning the equipment budget, and incorporating the franchisor’s multi-unit approval language as a documented condition — the unglamorous work that determines whether a study survives lender and SBA review without exception items.
Ground-up development of a six-cabin owner-operated boutique hospitality lodge in the Prince William Sound tourism market — five standard guest cabins and one larger flagship cabin — supported by a guest-services building with a shared hot tub, sauna, and outdoor gathering area. The study underwrote a blended average daily rate near $370 and occupancy ramping to a stabilized 62.5 percent, producing coverage sufficient to return a favorable determination against the SBA 7(a) framework.
What the Project Included
Six purpose-built guest cabins across two room types, a central guest-services building, shared amenities including a hot tub, sauna, and outdoor gathering area, and full site improvements on a compact parcel positioned for seasonal Prince William Sound tourism demand.
Capital Structure
$2,890,461 SBA 7(a) facility (85.4 percent of total project cost) at 8.00 percent over 300 months, with $494,730 of borrower equity (14.6 percent) — total project cost of $3,385,191 against annual debt service of $267,709.
Feasibility Study Challenges
A six-key lodge in a short, seasonal Alaskan market has little margin for rate slippage, so the study’s central task was testing whether the underwritten average daily rate could actually be realized rather than assumed. Coverage of 1.37x in the first stabilized year is favorable but not generous, and the determination was returned as favorable with conditions: an ADR rate-realization covenant tying the credit to achieved rate, a funded debt-service reserve, and standard closing items including property-tax confirmation, a guarantor personal financial statement, a not-to-exceed construction contract, and Alaska State Fire Marshal plan review. The conclusion was conditioned, not softened.
Feasibility study of a proposed SBA-financed expansion at an established major-brand fuel site in Mountain Home, Elmore County — razing a structure dating to 1962 and constructing a new 2,200-square-foot convenience store to capture inside-sales margin at a location whose fuel business is already proven. Stabilized Year 1 operations are projected at approximately $4,200,000 in revenue and approximately $246,000 of net operating income, confirming that the core business is viable before the expansion premium is counted.
What the Project Included
The budget allocates $1,200,000 to the new convenience store building — 82.8 percent of total project cost, or $545 per square foot — a concentration the study defended explicitly: inside sales, not fuel, generate the majority of gross margin, so directing capital to the dominant revenue driver is the correct underwriting posture. SBA and lender fees of $85,000 represent a conservative 5.9 percent of cost for a multi-party 504 structure, and $120,000 of initial working capital — 8.3 percent — sits inside the five-to-ten percent range lenders treat as reasonable without overcapitalization.
Capital Structure
An SBA 504 loan of $1,235,000 amortized over 25 years at an assumed 10.75 percent interest rate against $1,450,000 of fixed, known, and fully funded project costs, producing annual debt service of approximately $142,582 covered at 1.73x from initial stabilized operations.
Feasibility Study Challenges
The discipline in this study was scale honesty: the pro forma deliberately does not project demand beyond what is feasible within a neighborhood-scale convenience format, the 10.75 percent rate assumption builds in rate stress rather than optimism, and the sensitivity analysis tested whether the business as it exists — not as it might become — sustains the proposed debt. Coverage at 1.73x initial, improving thereafter, answered the question affirmatively under SBA SOP 50 10 underwriting standards.
Clarkesville, Habersham County, Georgia, United States
Independent feasibility study for the proposed automation and expansion of an existing commercial bakery in Clarkesville, Georgia. The assignment evaluated economic, market, technical, financial and management feasibility in connection with proposed SBA 7(a) International Trade and USDA Business & Industry loans. The study's determination was Favorable With Conditions.
Completed feasibility analysis for a proposed car-wash facility in Ukiah. The assignment covers economic, market, cost, financial, and management considerations for potential SBA underwriting.
Completed feasibility analysis for a proposed quick-service restaurant in Glendale. The assignment covers economic, market, financial, and management considerations for potential SBA underwriting.
Feasibility study for proposed new construction of a craft brewery in Springfield for an existing brewery operator. The report reviews site and economic conditions, market demand, development considerations, and financial feasibility.
Feasibility study for proposed new construction of an express tunnel car wash in Bakersfield. The report evaluates economic, market, and financial considerations for project planning and lender underwriting.
Completed feasibility analysis for a proposed RV resort with convenience-retail and guest-use facilities in Waller. The assignment covers economic, market, financial, and management considerations for potential SBA underwriting.
Feasibility study for proposed new construction of a fueling station and convenience store in Elizabethtown. The report covers economic, market, and financial considerations.
Feasibility study for a proposed new limited-service hotel in Tulsa. The report evaluates site, economic, market, financial, and management considerations for loan underwriting.
Tinley Park, Not specified, Illinois, United States
Agreement for proposed feasibility analysis of an indoor sports dome in Tinley Park. The document defines future study work and loan-application support, rather than completed study results.
Feasibility study for a proposed new event venue in Tomball. The report evaluates market conditions, site considerations, the operating concept, and financial feasibility.
Completed feasibility analysis for a proposed hotel in Acworth. The assignment covers economic, market, technical, financial, and management considerations for SBA underwriting.
Completed feasibility analysis for a proposed cabin vacation-rental development in Logan. The assignment covers economic, market, technical, financial, and management considerations for SBA 504 underwriting.
Completed feasibility analysis for a proposed RV and cabin resort in Livingston. The assignment covers economic, market, technical, financial, and management considerations for potential SBA-guarantee underwriting.
Feasibility study for acquisition and continued operation of an existing limited-service motel in Tallahassee. The analysis covers economic, market, financial, and management considerations for bank underwriting and potential SBA loan-guarantee support.
Feasibility study for a planned new limited-service hotel in Garner. The analysis covers economic, market, technical, financial, and management considerations for SBA mortgage-loan underwriting.
Feasibility study for a planned new RV and boat storage facility in Windsor. The analysis covers economic, market, and financial considerations for project planning and potential loan underwriting.
Feasibility study for a proposed new slaughterhouse and meat-processing facility. The assignment covers site and economic conditions, livestock and food-processing markets, technical facility planning, financial modeling, and management feasibility.
Feasibility study for continued operation and mortgage underwriting of an existing limited-service hotel. The assignment reviews local hotel-market conditions, operating assumptions, cost considerations, financial feasibility, and management planning.
Feasibility study for a proposed new boat and trailer storage facility. The assignment evaluates site and economic conditions, storage-market demand, technical and operating planning, and financial feasibility.
Feasibility study for a proposed new indoor cricket and sports facility with community and event uses. The assignment reviews site and economic conditions, recreational-sports demand, operating assumptions, and financial feasibility.
San Fernando, Los Angeles, California, United States
Completed feasibility analysis for a proposed new express car wash in San Fernando. The scope covers project planning, site and market conditions, operating assumptions, lender-underwriting considerations, and financial analysis.
Completed feasibility analysis for a proposed new express car wash in Manteca. The scope covers project planning, site and market conditions, operating assumptions, lender-underwriting considerations, and financial analysis.
Sacramento, Sacramento County, California, United States
Completed analytical assignment for a planned limited-service hotel in Sacramento. The work covers economic, technical, market, financial, and management considerations for new construction.
Hesperia, San Bernardino County, California, United States
Completed analytical assignment for a planned express car wash in Hesperia. The work addresses economic, market, and financial considerations for new construction and the proposed operating model.
Middletown, New Castle County, Delaware, United States
Completed analytical assignment for a planned express car wash in Middletown. The work addresses economic, market, and financial considerations for new construction and the proposed operating model.
Baton Rouge, East Baton Rouge Parish, Louisiana, United States
Completed analytical assignment for expansion and continued operation of an existing bar-and-grill restaurant in Baton Rouge. The work addresses economic, market, and financial considerations for the operating business and planned improvements.
Feasibility study for a proposed new fueling station, convenience store, and quick-service restaurant uses in Battle Creek. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed indoor climbing and recreation facility in Hackensack, with supporting training, retail, and food-service uses. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new express car wash in Visalia, prepared for project planning and loan underwriting. The analysis covers market, development-cost, and financial considerations.
Feasibility study for a proposed virtual-golf facility in Cave Creek with restaurant and pro-shop components. The report reviews market conditions, build-out costs, and financial feasibility.
Feasibility study for a proposed RV resort with tiny-home accommodations in the Williams area. The scope covers market conditions, development costs, operating assumptions, and financial feasibility.
Feasibility study for a proposed new travel center with vehicle fueling, convenience retail, and quick-service restaurants in Kingman. The report covers economic, market, technical/cost, and financial considerations.
Feasibility study for proposed new construction combining a membership dog park, coffee bar, brewery, and food-truck amenities in Meridian. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new fueling station with convenience-store retail in Portland. The report covers economic, market, technical/cost, and financial considerations.
Farmington, Strafford, New Hampshire, United States
Feasibility study for a proposed petroleum-transport training facility in Farmington. The supplied report reviews site, economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new owner-operated urgent care center with an on-site pharmacy in Pima. The report considers site, economic, market, cost, financial, and management factors.
Feasibility study for proposed uncovered RV and boat-storage construction in Overgaard. The report covers economic, market, and financial considerations.
Not specified, Schoolcraft, Michigan, United States
Feasibility study for acquisition and improvements to an existing campground and outdoor-recreation operation in Germfask Township. The report covers economic, market, and financial considerations.
Feasibility study for a proposed new fueling station and convenience store in Louisville. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for acquisition and operation of a coin laundry in Upland. The report covers economic, market, financial, and management considerations.
Feasibility study for a proposed independent hotel in Moab. The report covers economic, market, technical, financial, and management considerations for project planning and mortgage underwriting.
Feasibility study for a proposed new indoor boat and RV storage facility in Pueblo West. The report covers economic, market, and financial considerations, including demand, competition, and operating projections.
Feasibility study for a proposed new limited-service hotel in Georgetown. The report covers economic, market, technical, financial, and management considerations for project planning and mortgage underwriting.
Feasibility study for a proposed fueling and convenience-retail development in Lacey, with additional retail and office space. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed travel center in Lithia Springs, considering SBA or USDA-backed financing. The report covers economic, market, technical, financial, and management considerations.
Feasibility analysis for a planned truck repair, truck-wash, and truck-parking facility in the Greentown area. The study reviews site and access conditions, trucking demand, competition, operating considerations, and financial scenarios.
Feasibility study for a proposed new fueling station with a convenience store and car-wash component in Calimesa. The scope covers economic, market, and financial feasibility.
Feasibility study for a proposed fueling station with convenience retail and leased space in Rathdrum. The report covers economic, market, technical, and financial considerations.
Feasibility study for acquisition, renovation, and operation of a car-wash facility in Lancaster. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed limited-service hotel development in Santa Cruz. The report covers economic, market, technical, financial, and management considerations for project planning and mortgage underwriting.
Feasibility study for a proposed pet daycare and boarding development with related social and hospitality uses in Jacksonville. The report covers economic, market, and financial considerations.
Feasibility study for a proposed new pet boarding and daycare facility with related pet-care services in Lone Tree. The analysis covers economic, market, and financial considerations.
Feasibility study for a proposed RV resort in Hudson. The report evaluates economic, market, financial, and management considerations, including the project site and planned operations.
Feasibility study for a proposed travel center in Merkel with fueling, convenience retail, and restaurant uses. The report covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new bed-and-breakfast property in the Pataskala area. The report reviews economic, market, technical, financial, and management considerations for mortgage-loan underwriting.
Feasibility study for a proposed new hotel in Hemet. The report reviews economic, market, technical, financial, and management considerations for mortgage-loan underwriting.
Feasibility study for continued operation of an existing limited-service hotel in Murrieta. The report covers economic, market, cost, financial, and management considerations for mortgage-loan underwriting.
Feasibility study for a planned indoor, climate-controlled storage facility for recreational vehicles, boats, and other vehicles in Vero Beach. The study reviews site, market, operating, and financial considerations.
Feasibility study for continued operation and refinancing of an existing hotel in Springfield. The scope covers economic, market, technical, financial, and management considerations for mortgage-loan underwriting.
Feasibility study for a proposed new climate-controlled self-storage facility in Carrollton. The scope covers site, economic, market, cost, and financial considerations.
Feasibility study for a proposed new indoor climbing and fitness facility in Madison. The scope covers economic, market, and financial considerations for project planning and loan underwriting.
Feasibility study for a proposed outdoor boat and RV-storage facility in Merritt Island, evaluating the planned development and its market and financial considerations.
Santa Monica, Los Angeles, California, United States
Feasibility study for acquisition and owner operation of an existing recording-studio facility in Santa Monica, prepared for mortgage-loan underwriting.
Feasibility study for a proposed indoor RV and boat-storage facility in Waller. The scope covers site, market, operating, and financial considerations.
San Bernardino, San Bernardino, California, United States
Feasibility study for a proposed family-entertainment center in San Bernardino with mini-golf and escape-room attractions. The report evaluates site, market, operating, and financial considerations.
Feasibility study for expansion of food-irradiation operations at a facility in Hidalgo, including cold-storage modifications and a new irradiation component. The report evaluates economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new wedding and event venue in the Sparta area. The analysis reviews the planned site, market conditions, development costs, and financial feasibility.
Feasibility study for a proposed RV resort in the Wagoner area. The report reviews economic and market conditions, site considerations, competition, operating assumptions, and financial feasibility.
Feasibility study for a proposed duct-liner manufacturing plant in Milledgeville. The scope covers economic, technical, market, financial, and management considerations.
Ste. Genevieve, Ste. Genevieve, Missouri, United States
Feasibility study for expansion of a stone-mining and manufacturing operation in the Ste. Genevieve area. The scope covers economic, market, technical, financial, and management considerations.
Conventional loanUSDA B&ISBA — program not specified
Feasibility study for a proposed ambulatory healthcare center in Winter Garden. The report covers economic, market, site, and financial considerations for project planning and loan underwriting.
Feasibility study for expansion of an existing controlled-environment hydroponic greenhouse in Frederick. The scope covers site, market, technical, financial, and management considerations.
Feasibility study for a proposed fueling and convenience-retail development with RV, towing, and food-service components in the Dateland area. The scope covers economic, market, technical, environmental, financial, and management considerations.
Moreno Valley, Riverside, California, United States
Feasibility study for acquisition of an existing limited-service hotel in Moreno Valley. The scope covers market demand, competitive positioning, operating assumptions, technical considerations, and mortgage-loan underwriting.
Feasibility study for a proposed fueling station and convenience store in Fort Myers. The scope covers site evaluation, market conditions, operating assumptions, and financial feasibility.
Feasibility study for a proposed new fueling station with convenience-store and quick-service food components in Athens. The scope covers economic, market, cost, and financial considerations.
Feasibility study for a proposed new express car wash in Springtown. The study addresses project planning, site and market conditions, and financial feasibility.
Feasibility study for a proposed business expansion in Gary combining truck parking, used-equipment sales, and warehouse space for logistics, storage, and freight handling.
Feasibility study for reconstruction of an existing express car wash in Austin. The study addresses project planning, market conditions, operating assumptions, and financial feasibility.
Spartanburg, Spartanburg, South Carolina, United States
Feasibility study for a proposed new upscale limited-service hotel in Spartanburg. The scope covers economic, market, technical, financial, and management considerations.
Feasibility study for a proposed new fueling station with a convenience store and market-rent retail in Edmond. The study evaluates economic, market, technical, and financial considerations.
Feasibility study for a fueling station and convenience-store operation in Lawrenceville. The study evaluates economic, market, technical, financial, and operating considerations.
Bossier City, Bossier Parish, Louisiana, United States
Feasibility study for the prospective acquisition and repositioning of an existing self-storage property in Bossier City. The report reviews market conditions, operations, site factors, and financial feasibility.
Feasibility study for acquiring and continuing operation of an existing limited-service hotel in Yuma, including property-improvement and operating-plan analysis.
Lake Lure, Rutherford, North Carolina, United States
Feasibility analysis for a proposed outdoor adventure and recreation park in Lake Lure. The scope covers planned recreation activities, associated facilities and equipment, operations, and financial considerations.
Barstow, San Bernardino, California, United States
Feasibility study for a planned fueling station and convenience store in Barstow. The study reviews site suitability, market conditions, competition, operating assumptions, and financial feasibility.
Moreno Valley, Riverside, California, United States
Feasibility study for the continuation of a select-service hotel in Moreno Valley. The study evaluates economic, market, technical, financial, and management considerations for mortgage-loan underwriting.
Feasibility study for acquisition of a fueling station with convenience and grocery retail operations in Norcross. The scope covers project planning, economic and site conditions, market analysis, and financial feasibility.
Feasibility study for a proposed new express car wash in Elizabeth. The study reviews site and economic conditions, competition, operating assumptions, and financial feasibility.
Feasibility study for a proposed post-acute care and rehabilitation facility in Modesto. The study reviews site and market conditions and evaluates economic, financial, and management feasibility.
Feasibility study for the proposed acquisition and repositioning of an assisted-living facility in Las Vegas. The scope covers economic, market, cost, financial, and management feasibility.
Los Angeles, Los Angeles, California, United States
Feasibility analysis for a proposed wellness and fitness studio in Los Angeles. The study reviews site and market conditions, operating plans, and financial feasibility.
Feasibility study for a proposed RV park in the Vernal area. The study reviews site and economic conditions, tourism and market demand, competition, operations, and financial projections.
SBA — program not specified
Legal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.
