Scotsman Guide - April 2009 Commercial Edition

How to Keep Green Going

“eco-efficient” companies also outperformed those viewed as “less efficient” by more than 3 percent between 1995 and 2003.

Occupants can enjoy green-building benefits, as well. in a 2008 report, the General Services administration found that employees in buildings with sustainable features were 29-percent-more satisfied with their working conditions than other workers. Productivity gains of as much as 16 percent are possible in a green work environment, according to studies from the late 1990s.

Lighting also can affect productivity, not to mention energy savings. Consider, for example, a large apartment community, which can easily field hundreds of requests to change light bulbs. This represents a significant chunk of maintenance time. Owners can save money simply by changing from incandescent bulbs to compact fluorescents, which have a lower operating cost and a five-year life span. This can free up some time for existing maintenance staff to tackle other issues.

Finding help

Over a building’s life, its operational and maintenance costs can easily exceed its initial construction costs. as lenders and developers place greater scrutiny on a building’s design and materials, its operational and maintenance aspects come into focus.

Concern about how the building will function is as important as how it is constructed. Site selection, landscaping and waste management are just a few of the

many ingredients that contribute to a recipe for success.

Where can your borrowers find the talent to drive buildings to higher performance levels? Start with organizations that are developing green-accreditation programs. at the forefront of education and certification is the U.S. Green Building Council’s LeeD program. Operations and maintenance comprise one of its specialty tracks. Check for similar local or state green-building groups in your area, as well.

■■■■■

as advanced green-building techniques and technology converge, education and training of owners and operators becomes more important. The next generation of building operators will advance physical structures to ones that deliver fiscal results.

Demand for resource-efficient commercial projects is growing. With that increased demand, we are seeing the bar raised by the lenders that finance these projects, the developers that build them, and the companies and buyers that will occupy them.

Ultimately, green is no longer a bandwagon; it is a well-established way of measuring an organization’s intent and business principles that has a direct impact on the bottom line. Brokers who are well-versed in how green operational and management practices affect their borrowers often will find a way to add value to their deals and their client base.

View this article and more at scotsmanguide.com

Hard Money Made Easy

THE
BANK
IS
OPEN

Nationwide Hard Money Loans
from $300,000 to $3 Million
Bridge Loans • Mezzanine Financing • Gap Financing • Short-Term Credit Resolutions • Emergency Funds

$1,800,000 Land Las Vegas, NV

Broker Fee Paid
$60,000
South Carolina

$4,000,000
Cash-Out Refi
Hilton Head, SC

Broker Fee Paid
$47,200
Aspen, CO

$650,000
Conversion Condominium
St. Joseph, MI

Broker Fee Paid
$45,000
Pueblo, CO

Contact Us Today
720-889-1175 or
1-866-398-8916
www.assetfundinggroup.com

COMMITMENTS WITHIN 24 HOURS
5-DAY CLOSINGS
BROKERS PROTECTED

Fast • Fair • Flexible

Find Clients at the Carwash Continued from Page 34

survey, the brochure should contain relevant financial information that investors need to help conduct their due diligence. This means having two to three years of tax returns; profit-and-loss and balance-sheet statements; utility bills; car counts; sales and labor reports; employee lists and payroll records; equipment and inventory lists; maintenance checklists; lease agreements; and house accounts and any pre-paid or outstanding warrants.

Other relevant information includes
pit-cleaning manifests, material-safety-
data sheets for chemicals used and stored
at the facility, and any recent appraisals or
environmental audits. in short, the bro-
chure should provide the rationale for the
asking price.
if the seller has been operating the
carwash out of the proverbial cigar box,
brokers can help potential buyers de-
velop a more accurate presentation of the
business. This may include performing a
retail market analysis of the region and
trade area as well as compiling water-con-
sumption data, utility bills, material and
supplies invoices, and other items to con-
struct a history of business activity.
in addition to meeting loan criteria
such as borrower strength, cash and eq-
uity position, and debt-service coverage,
your clients must have a sound business
plan to support the loan application. They
also must demonstrate the business’s vi-
ability via a feasibility study.
a feasibility study evaluates the busi-
ness’s core dimensions including market,
technical, economic, financial, business-

on the Web

International Carwash Association:

www.carwash.org

model and management viability. it will answer basic questions regarding adequacy of gross sales and the buyer’s ability to provide an effective economic and customer-centric operation. in this economic environment, lenders are placing a lot of emphasis on market and management viability.

Finally, brokers can further improve the likelihood of making a deal by screening clients to determine whether they are financially qualified to purchase and operate a carwash and whether they have a proven track record of success in the carwash industry or a closely related business.

■■■■■

Carwash properties may have some potential for brokers who are looking to expand their horizon during these troubled times. Borrowing money for anything these days is difficult. Fast-paced retail development has slowed in many suburban areas, and local banks may view carwash properties as generally having more risk, making loans much harder — if not impossible — to obtain.