Planet Bardot, a high-end women’s clothing and fashion accessory boutique, was a vision that Diana Tabesh brought to nearly three years ago when she began operating from a small, 700 square foot retail space in Dallas, Texas. Diana’s reputation within the fashion industry quickly followed her from Southern California to the heart of Texas, and almost immediately, Planet Bardot became a tremendous success. With an ever growing customer base and an extremely loyal following, Diana and her husband, Bob, knew they had to find additional space in order for the business to continue to thrive.
Unfortunately, more space to rent on Knox Street, which is the most prominent retail corridor in Dallas, was either extremely difficult to come by or came at such a high cost, there weren’t any economically viable options for the business to grow into and remain in that area. That is when Bob’s acumen within the real estate industry proved to be incredibly valuable to the business, as he was able to realize that there was an opportunity to potentially purchase the building that already housed Planet Bardot’s business and expand it to not only accommodate the needs of Diana’s success business, but also to attract other high-end commercial tenants that would further complement the Planet Bardot brand.
After successfully negotiating a purchase and sale contract with the building owners in January 2015, Diana and Bob quickly realized that they had a lot of work to do as it related to completing their plans for expanding and improving the property, but more importantly, secured the necessary financing needed to close on the acquisition of the property in the timeframe that was acceptable to the seller. With barely a year of operating history for the business, conventional commercial financing was an impossibility, so Diana and Bob began exploring every option available to take advantage of the opportunity to become their own landlords. Through an introduction made by a mutually trusted intermediary, the Tabeshes came to Mercantile Capital and we began the process of finding the most beneficial way to execute on their business plan.
As the nationally recognized experts in SBA 504 loan, we offered Diana and Bob the opportunity to secure acquisition and construction financing that combined below market, long term fixed interest rates with higher leverage (85% loan to cost) that enabled them to preserve extremely valuable operating capital to grow their business rather than having to put significantly more into the property as is typically required with any other loan products. While the business continues to thrive month over month, year over year, it is now able to occupy the majority of the newly renovated retail building, which now includes a brand new second floor, an elevator, and much needed additional parking for its customers. At the same time, the expansion and quality of improvements, has attracted some of the world’s most notable retailers that have executed leases in the remaining space not occupied by Planet Bardot and has resulted in the company’s ability to further augment the cash flow of the business operations with third party rental income of several complimentary retail brands.
“We believe that without Mercantile’s expertise, we would have failed to obtain the best-suited financing for our project. Our (SBA) 504 loan gives us room to grow and generate rental income with less money out-of-pocket than a conventional loan would have. The terms that Mercantile gave us guaranteed this project’s success and surpassed all our expectations.”
— Diana Tabesh / Owner, Planet Bardot
“We feel our success had to do with Mercantile trusting in Planet Bardot and enabling us to purchase our property and expand our store. Next Year, with over a 6,900 square foot sales floor, Planet Bardot will become a powerful fashion house recognized nationally.”
— Bob Tabesh / Owner, Planet Bardot
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