Fun Station is a successful arcade/game facility which has been located in the same place for 26 years. Recently, new owners, Simon Deith and Michael Izzo sought to purchase the business and the deal was structured as a capital acquisition (the building which housed the arcade). Purchasing the building was a key part of the deal for the buyers as it will not only help them stabilize costs for the business, but, more importantly, enable them to retain this location-specific business in its successful spot.
As Steve Molfetta, VP Lending Long Island Development Corporation said "The right location is a major element in the success of any recreational retail business. Fun Station has established its role in this active market and a change in location would be devastating. LIDC is proud that it could help the new owners assure a future in this location."
The right financing was essential to the purchasers' ability to acquire the real estate and was achieved through first and second mortgages at affordable rates. The financing covered 90% of the total project cost including renovations, expansion and soft costs. The second mortgage, provided by LIDC, was done at 20 years (self amortizing) at a low fixed rate. This affordable package gave the principals the ability to look at expansion they otherwise might not have been able to afford just now. Among the plans for expansion are: using the facility for birthday parties and other celebrations; day camp; school trips; special community events; corporate training and business networking events. What was once a simple game arcade is now being converted into a true family/corporate entertainment facility.
The new owners have extensive backgrounds in arcade design and have access to the latest in vending machines and amusement equipment through their affiliate companies which will also be housed at the Fun Station location. Recent studies have shown that Americans are looking for more recreational outlets that can be enjoyed by the family unit as a whole. An expanded arcade/game facility provides just such an outlet. Being able to assure the location through the real estate purchase has enabled these entrepreneurs to focus on expanding and meeting the community's recreational needs for years to come.