Acquire a newly built (2023) 8,030 SF freestanding retail building. Golden Glaze owner-occupies ~75%; the in-place Mr. Froze leaseback covers the remaining ~25% — financed with an SBA 504 loan at roughly 10% down.
A corner-lot, modern metal-construction retail building with drive-through capability and ample parking. The seller offers an immediate-income leaseback on ~2,000 SF, leaving 6,030 SF for Golden Glaze to occupy — which is exactly what unlocks SBA owner-occupied financing.
Because GG occupies well above 51%, the building qualifies for SBA 504 / 7(a). You keep Mr. Froze as a paying tenant in the other 25% (SBA allows leasing up to 49% of an existing building) and that rent helps your coverage.
For a real-estate-heavy, owner-occupied purchase, the SBA 504 is the cheapest capital available — lowest down payment and a long-term fixed rate you can't get on a conventional or 7(a) loan.
Conventional first mortgage from your bank. ~25-yr amortization, market rate. Often the lead lender originates this piece.
SBA-backed debenture through a Certified Development Company. 25-yr fixed rate — you lock today's rate for the life of the loan. This is the magic of 504.
Borrower injection. Lowest of any commercial structure (conventional wants 25–30%). Can sometimes be partly a seller note on standby.
Built 2023, but you're buying an already-built building, not constructing it with loan funds — so SBA treats it as existing and the 51% rule applies (which you clear). The stricter 60%-now / 80%-in-10-yr rule only hits ground-up construction. Expect the lender to confirm this classification; it's routine.
Asking price is $2,200,000 (Crexi) — about $274/SF on 8,030 SF. That's below the ~$300+/SF it costs to build new, so a 3-yr-old building is being offered under replacement cost. Strong starting point; the model below shows how the deal pencils at the ask and where to push.
At $274/SF the ask is already under replacement cost and under the DFW retail average — it's priced like older stock despite being a 2023 build. Room to negotiate toward ~$250/SF ($2.0M), but this is a buy even at ask.
Watauga is a softer submarket — anchor 7.0–7.5%, not the low-6s a broker will pitch. But remember the cap rate only governs ~25% of this building.
Sources: Crexi (Watauga retail), M&D CRE / Partners DFW Retail Q1 2026, Maxx Builders TX construction cost guide, Northmarq net-lease, ApartmentLoanStore cap-rate tracker (Jun 2026).
Drag the inputs to pressure-test the deal. DSCR is computed on the building's cash flow = Golden Glaze store cash flow (before occupancy) + Mr. Froze rent, divided by total annual debt service. Lenders want ≥ 1.25×.
| Bank loan (1st lien) | |
| CDC / SBA debenture | |
| Borrower down payment | |
| Bank payment / mo | |
| CDC payment / mo | |
| Total debt service / mo | |
| Total debt service / yr |
| GG store revenue / yr | |
| Store cash flow before occupancy | |
| + Mr. Froze rent / yr | |
| Cash available for debt service | |
| Annual debt service | |
| Surplus / (shortfall) after debt |
Green ≥ 1.25× · Amber 1.00–1.25× · Red < 1.00× (at current rate & sales inputs)
| Margin ↓ / Price → | $2.0M | $2.2M | $2.4M | $2.6M |
|---|
From "I want this" to keys in hand. SBA 504 typically closes in 45–75 days when the package is clean and you use a Preferred Lender.