Bison Arranges 100% Loan-to-Cost Construction Loan for Future Wawa Gas/Convenience Store
| ST PETERSBURG, FL – Bison Financial Group, a real estate advisory firm based here, announces the closing and funding of their tenth high-octane construction loan for a preferred developer of Wawa gas station/convenience stores. The loan is secured by a ground lease to Wawa and covers 100% of the developer’s investment required to acquire the land, obtain approvals, gain entitlements, secure building permits, cover horizontal construction costs, and pay soft costs including interest carry.
Wawa is one of the nation’s fastest-growing gas/convenience store chains. Wawa is a privately owned company with 1,000+ locations and is based in Eastern Pennsylvania with roots dating back to 1803. Fun fact: one of the previous sites funded by Bison for this development company was celebrated as the 1,000th Wawa store opening! Wawa plans to grow to over 2,000 stores over the next decade. For more information contact David Repka at 727-537-0330 or by email at moc.laicnanifnosibnull@evad |
The investor procured by Bison does not share in the equity upside on the deal or have a profit participation, just a strict coupon rate of interest. This closing marks Bison’s 10th high-octane Wawa financing and 29th closing with the key principal of the developer. According to Bison co-founder Jared Repka, “Even during the global pandemic we were able to arrange high leverage financing to keep building Wawa locations. In the heart of the pandemic leverage dipped to 95% of cost, but as the world is getting back to normal our investors are confidently back to 100% of cost.”
This financing program targets developers seeking an alternative to full recourse bank financing that taps out at 60 to 70% of cost. Bison co-founder David Repka states that, “This is the ideal program for developers with more opportunities than their current capital base can cover. If a developer is comfortable contributing 40 to 50% of cost in project equity that the increasingly conservative banks require, this is not the right program for them.” The principals of Bison Financial Group tailor win-win transactions and can deliver up to 100% loan to cost, non-recourse construction financing for the right developer and financially qualified tenant. This program only works for build to suits and renovations to suit, it does not work for stabilized properties with a capped upside. |