Prepared for lenders, CDCs, and federal agencies to SBA SOP 50 10 8, USDA 7 CFR Part 5001, and conventional underwriting standards. Fiduciary duty runs to the lender and the agency, never the borrower. 4,000+ engagements since 1998 covering $41.2 billion in evaluated project value. So far in 2026: 41 engagements and $1.54 billion evaluated — 17 SBA, 11 USDA.
Special purpose properties — marinas, sports and recreation facilities, event venues, churches, schools, car washes — present the hardest underwriting problem in commercial lending: the building has limited alternative use, so the loan is repaid by the operating business or not at all. The feasibility study therefore carries the full weight of the credit decision. It must demonstrate the demand base for the specific operation, the operator's capture against named competitors, and operating economics deep enough that the lender can underwrite the business with confidence, because the collateral will not rescue a failed operation.
The methodology is operation-specific by design: berth and dry-stack demand census for marinas, court-utilization and membership modeling for racket and sports and recreation facilities, bookable-date and catering analysis for event venues, traffic-conversion modeling for car washes. Every model is benchmarked against RMA and IBISWorld operator data and stress-tested against program minimums, with liquidation analysis addressing the special-purpose collateral discount directly where the lender requires it.
Marine assets are the most demanding of these categories, because demand is a countable vessel population rather than a household trade area and the cost side carries dock systems, dredging and seawall reserves. Those engagements are documented in detail under marina and dry-stack boat storage feasibility studies.
Every Wert-Berater financial model is fully linked with no hardcoded values, so any reviewer can stress any input. Deliverables comprise a complete narrative report and the linked Excel model, with ten-year pro forma, sensitivity analysis at ±5, 10, and 15 percent, interest-rate stress from +0.5 to +3.0 percent, and ratio analysis benchmarked against RMA and IBISWorld data.
SBA engagements are prepared to SOP 50 10 8, including its debt-service-coverage minimums of 1.15x operating and 1.00x global. USDA engagements follow RD Staff Instruction 5001 across the Business & Industry, Community Facilities, REAP, and Value-Added Producer Grant programs. Conventional engagements are built to the lender's stated coverage standard, typically 1.20x. SBA SOP 50 10 8 contains specific treatment of special-purpose property in collateral and equity-injection requirements, and the firm's studies address those provisions explicitly; where value rather than project viability is the assignment, the relevant service is a special-purpose appraisal.
The firm's special-purpose record spans marina and dry-stack storage (a $23,750,000 SBA 504 boathouse facility in Sarasota), sports and recreation (a $4,840,000 six-court recreation and taproom venue in the Austin MSA), and wedding and event venues (a $10,066,000 winery and event estate in Temecula). Independence is non-negotiable: determinations follow the evidence and are not revised under pressure, and studies are built to pass lender, agency, and third-party review without exception items.
Because the collateral offers limited alternative-use value, the study must carry the full analytical burden that a conventional appraisal shares with a market report. For special purpose properties, those functions collapse into a single document, and every section must be self-supporting under agency or lender review.
Demand for a special purpose property cannot be read from a vacancy report or a capitalization-rate survey. It must be constructed from primary and secondary sources that are specific to the operating category, then reconciled against observable supply.
For marinas and boating facilities, the analysis draws on state vessel-registration databases, Army Corps of Engineers slip-count records, and harbormaster licensing filings to establish the ratio of registered vessels to available wet and dry-storage capacity within a defined trade area. For sports and recreation facilities, utilization data from state athletic associations, municipal parks departments, and trade groups such as the Sports & Fitness Industry Association provide participation-rate baselines that are then adjusted for local demographic composition. For event venues, county marriage-license issuance records, hotel-occupancy data, and competing venue booking calendars establish the addressable event market. For car washes, traffic-count data from state DOT sources, combined with vehicle-registration density and competitor throughput estimates derived from public review platforms, supports the conversion-rate model.
Competitive supply is inventoried through direct inspection, operator websites, licensing registries, and where applicable, health-department or liquor-authority permit databases. Every supply unit is rated on capacity, condition, and pricing so the subject's capture assumption rests on a documented competitive position rather than an unsupported market-share claim.
Coverage ratios for special purpose properties are sensitive to a narrow set of operating assumptions. Identifying those assumptions and stress-testing them explicitly is the analytical work that separates a credible feasibility study from a projection document. For this asset class, four inputs consistently drive the outcome.
SBA SOP 50 10 8 treats special purpose properties as a distinct collateral category and imposes specific equity-injection and collateral-coverage requirements that do not apply to general-purpose commercial real estate. The feasibility study must address those provisions directly, not by reference. Debt-service coverage is tested at 1.15x on an operating basis and 1.00x on a global basis; the study documents both calculations using the proposed loan structure and demonstrates that projections are achievable under the competitive and demand conditions described in the market analysis.
USDA Business & Industry and Community Facilities engagements require the feasibility study to support the agency's own underwriting file. RD Staff Instruction 5001 requires evidence that the market can support the proposed operation at the scale financed; for special purpose properties, that means the demand census and competitive analysis must be granular enough to survive agency review without supplemental requests.
Conventional lenders typically apply a 1.20x coverage floor and place additional weight on the operator's track record, because the exit option on a failed special purpose property is materially worse than on a multi-tenant commercial building. The study addresses this directly by separating real-property value from going-concern value and by providing the liquidation analysis the credit officer needs to size the loan against a realistic recovery scenario rather than an optimistic one.
The engagement begins with a fixed fee quoted within one business day of inquiry. The fee is not contingent on the study's finding; it does not change if the conclusion is unfavorable, and it is not revised upward once the data room is open. That structure is the operational expression of the firm's fiduciary duty to the lender and reviewing agency rather than to the borrower.
Standard delivery is 10 to 15 business days from receipt of a complete data room. The data room for a special purpose property engagement typically includes three years of operating statements (or a detailed operator business plan for a startup), the proposed loan term sheet, site control documentation, any existing licenses or permits, and the operator's résumé or management agreement. Rush delivery is available and is scoped at the time of engagement.
Every engagement is published to a secure client portal. The financial model is a fully linked Excel workbook with no hardcoded values; it remains live in the portal so the lender, the agency reviewer, or the borrower's counsel can change any input and watch every downstream calculation update in real time. This matters for special purpose properties because lenders frequently need to re-run the model at a revised loan amount, a different interest rate, or an adjusted opening date without commissioning a revised report. The model supports that work without additional fees for standard re-runs within the engagement period.
The fee is fixed and quoted within one business day of inquiry. It does not change based on the study's conclusion, and no portion is contingent on loan approval or a favorable finding. The scope of the engagement — asset type, project size, and program requirements — determines the fee; contact the firm directly for a same-day quote.
The collateral has limited alternative use, so a lender cannot rely on liquidation value to recover principal if the operation fails. The loan is repaid by the business or not at all. That means the feasibility study must demonstrate demand, competitive position, and operating economics with enough precision that the lender can underwrite the business independently of the real estate's resale value.
Standard delivery is 10 to 15 business days from receipt of a complete data room. Rush delivery is available and is scoped at the time of engagement. The most common cause of delay is an incomplete data room; the firm provides a checklist at engagement so sponsors can assemble the required materials efficiently.
No. A feasibility study is an independent analytical document prepared for the lender and reviewing agency. It presents findings based on evidence; it does not advocate for approval, and no agency has endorsed or pre-approved any study format. Loan approval decisions rest with the lender and the agency, not with the feasibility consultant.
Every engagement includes a fully linked Excel workbook with no hardcoded values, a ten-year operating pro forma, sensitivity analysis at ±5, 10, and 15 percent of revenue and expense, interest-rate stress from +0.5 to +3.0 percent, and ratio analysis benchmarked against RMA & IBISWorld data. The model is published to a secure client portal and remains live so any reviewer can stress any input.
SBA SOP 50 10 8 and USDA RD Staff Instruction 5001 impose distinct coverage tests, collateral treatments, and documentation standards. The firm prepares studies to the specific program requirements of each engagement. Where a transaction involves both agencies, the scope is structured to address each program's standards explicitly; this is discussed and quoted at the time of engagement.
Qualify a project. Tell us about the project and the program. We will tell you the truth about it — scope, timeline, and fee confirmed before work begins.
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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.