Recently Funded - Arco Gas Station Financing

First Financial Capital successfully completed multifaceted financing structure in the amount of $4,965,000 in 30 days.

Transaction Overview
This custom financial solution was structured to address three simultaneous capital needs for the borrower, including real estate acquisition, business expansion, and capital improvements.

Deal Structure Breakdown
The $4,965,000 facility was allocated across three distinct components:

• Part 1: Leasehold-to-Fee Simple Acquisition (Arco Station) Financing provided to purchase the underlying land of an existing Arco-branded gas station. The operators previously owned the business operations but have now secured the real estate. FFC provided 100% of the proceeds.
• Part 2: 100% Business Acquisition First Financial Capital provided 100% of the cash proceeds required for the operator to acquire a new, separate business entity (Business Only Loan).
• Part 3: Cash-Out for Site Improvements A cash-out, non-revolving credit line was established to fund critical site improvements. Specifically, these funds are designated for the replacement of fuel tanks at an existing gas station owned by the borrower.

First Financial Capital successfully financed the land acquisition for an Arco branded gas station, covering a 20,972 SF lot at a $2,270,000 purchase price, financed at 100%.

The borrower already operated the site, having acquired the business with FFC financing three months ago. From the start, the plan was to finance the business first and the land second. The borrower had already negotiated the land purchase with the oil company before even closing on the business, so this deal was set up well in advance.

Strategized from day 1.

First Financial Capital successfully provided 100% financing for the hard costs of a newly developed Arco-branded fuel facility, featuring a 4-MPD diesel station, 3,800 SF convenience store, and car wash.

Located just off the freeway on 2.57 acres along Interstate 215, the site is positioned to become a key fueling destination for truck operators and a high-visibility stop for highway travelers.

First Financial Capital has successfully provided the financing for the construction of a convenience store, gas station, and carwash. The complexity of this transaction involved a double-faceted financing with both refinancing of the existing land debt and providing a construction commitment bringing the LTV to 78%.
 
FFC looks to the sponsor first, then the collateral property, which is why our team was able to provide a custom-tailored loan with sizable construction disbursements and interest reserves.

First Financial Capital has successfully financed the acquisition of an Arco branded gas station in Torrance, California in less than one month.
 
As a relationship-based lender, the borrower exercised their track record with FFC to get a financing commitment for 70% of the purchase price prior to submitting an offer. This allowed for the borrower to secure the deal against other bidders with an all-cash offer and 3 week closing.  
 
With our custom tailored loans that have no pre-payment penalties, and free renewals, the borrower can now seek conventional debt in leisure.

First Financial Capital provided $3,300,000 for an acquisition of an Arco in Ventura County, CA. We moved quickly by working with the borrower's broker and went from first contact to fully funded in under ten days.

First Financial Capital completed a refinance of an existing gas station in three days. The borrower was in the final stages of obtaining [SBA financing](https://www.firstfincap.com/articles/sba-loan-small-business-administration-loan) to take out the preexisting lender, however the lender was adamant on the maturity date and was persistent on foreclosing on our borrower. With the ability to close in stellar speeds, FFC was able to complete a quick gas station refinance without any prepayment penalties. Our borrower’s [SBA financing](https://www.firstfincap.com/articles/sba-loan-small-business-administration-loan) completed one week thereafter and paid off their [OLB (outstanding loan balance)](https://www.firstfincap.com/articles/acronyms) with us without any fees.

First Financial Capital has successfully placed a $10,900,000 construction loan for the development of an Arco/ampm, three [QSR (quick service restaurant)](https://www.firstfincap.com/articles/acronyms), and carwash in Menifee, California at a [LTC (loan to cost)](https://www.firstfincap.com/articles/loan-to-cost-ltc) of 80%. The sponsor has an extensive background in both the development and operation within the retail space and has since become the largest Arco/ampm owner and operator in California.

Despite the market uncertainty during the peak period of the COVID-19 pandemic in May, 2020, FFC was still able to provide the sponsor with an [LOI (letter of intent)](https://www.firstfincap.com/articles/letter-of-intent) in 24 hours. Three weeks thereafter, the borrower received the first draw of $2,725,000 of four in June, 2020.

The ease of this transaction was only possible due to FFC being privatley capitalized which allowed for a quick credit descision process.

Estimated completion of the project is set for December, 2021.