Store Expansion & Renovation


Grocery Store Chain Finances Multi-Store Expansion with Fixed FMV Lease

The Customer

Organization Type:
Independent Grocery Store 

Location:
Oklahoma

Project Scope:
Store Expansion and Renovation

First American

  • Dedicated Project Manager
  • Competitive Rates, no fees
  • Lease management portal 
  • Industry leadership
  • Vendor-neutral 

The Challenge: 

As part of an aggressive growth strategy, a grocery store chain was expanding rapidly, opening new stores and rebranding existing locations to provide a more upscale shopping experience that would attract new clientele. The company had relied on a bank line of credit to finance the initial stages of the expansion. But with costs as high as $5.5 million per store, they wanted to find a solution to minimize the amount of debt added to thier balance sheet in an effort to manage thier covenants. 

In order to continue expanding without jeopardizing thier banking relationship, the company needed an innovative solution.   


Our Solution:

First American was able to offer a comprehensive fixed fair-market value (FMV) leasing program to cover all aspects of the store renovations, from construction costs to lighting, flooring, and fixtures. Cash reimbursements built into the lease allowed the company to pay down their line of credit, which greatly improved thier balance sheet. Moreover, the fixed FMV lease structure provided a known cost of ownership at the end of the lease. Best of all, First American was able to provide the entire program at an outstanding, unbeatable rate.  


Business Impact:

The company financed three gorgeous new stores, complete with new prepared food offerings, expanded produce and modern branding. From initial consultation to reimbursement, the lease transaction took only six weeks - a remarkably fast turnaround that put cash in their pockets quickly. 

With this on-target finance solution, the company is meeting their growth objectives with a solid balance sheet, smart asset strategy and a bright future ahead of them.   

Our services include much more than just technology financing. 

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