The Mandate
A multi-unit operator adding a fourth bowling-anchored entertainment center engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 7(a) financing request for a project located in Tulsa County, Oklahoma. Total project capitalization fell within the $5M-$10M band. The capital provider, a specialty SBA lender, required documentation consistent with current program review standards. The analytical question put to the team: Did Broken Arrow trade-area family-household density support a 32-lane bowling and entertainment program.
Engagement Scope
- Primary market area defined as a 10-mile drive-time
- Comparable supply set of 9 properties
- Demand model framework: family-household leisure capture and per-cap revenue build
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 10-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of entertainment assets in Oklahoma. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 9 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a family-household leisure capture and per-cap revenue build approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 2.4 across the projection window, with a stabilized capture rate of 4.8%.
Exhibit 1: Comparable Supply Set, Oklahoma PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- PMA family households totaled 48,200 with median household income of $74,800.
- Comparable bowling-anchored entertainment centers cleared $24.80 to $32.40 per-cap visitor spend.
- F&B revenue mix of 38% supported the diversified-revenue financial model.
- Year-three DSCR of 1.34x cleared the SBA 7(a) review threshold.
Deliverable
The delivered report ran 128 pages with 30 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the specialty SBA lender. The corresponding SBA 7(a) review framework guided exhibit selection and supporting documentation.