It’s hard to believe, but 75% of 2015 is history. Halloween is almost here, which means Christmas isn’t far behind, and Thanksgiving will fall sometime in between. Next year will probably get here much sooner than most of us would like, but it’s not here yet, so let’s talk about what’s going on now.
Check this out: we recently closed a fourth loan for XL Sports World, which makes them our second* four-peat client. Since 2011, we’ve closed loans for XL in Orlando (FL), Saco (ME), and Midlothian (VA). This fourth loan was for the purchase of an existing 56,208 SF indoor multi-sport facility in Apex, NC. We provided both the first and second mortgages for this $4.51 million project, and Florida First Capital Corporation was the Certified Development Company (CDC). It’s not every day that a lender is able to provide four SBA 504 loans for the same small business owner, but we’ve proven that it’s not impossible (and it’s a pretty smart move on the part of the business owner).
To get you up to speed, here’s how the rest of our third quarter went:
- We financed the $288,000 acquisition and renovation of an office condo for Sanjoy Sathpathy, MD in San Diego, CA. Upon completion, Dr. Sathpathy will relocate his practice to the updated facility and occupy 100% of the space. This project will allow him to take on additional clients and grow his business, while building equity in his real estate. We provided both the first and second interim mortgages through construction with CDC Small Business Finance as the CDC and Morgan Stanley providing the permanent first loan.
- We financed the $2.38 million increase of an existing 504 loan for Long Term Assets, LLC in Palm Springs, CA. We originally provided the 504 financing for the acquisition and renovation for a 24-room hotel in 2014. Subsequently the borrower put additional equity in the project to expand the scope of the original renovation plans. This loan increase allowed him to recoup a majority of his additional equity under the terms allowable within the 504 Program. Bank of Southern California provided the first mortgage and SoCal CDC was the CDC.
- We financed the $2.58 million acquisition of a 26,258 SF retail showroom and marina for Nautical Ventures Marina in North Palm Beach, FL. This is the second location for Nautical Ventures Marina and provides the company with the opportunity and ability to expand and grow. Space Coast Credit Union provided the first mortgage and Florida Business Development Corporation was the CDC.
- We financed the $1.07 acquisition of an industrial building for BJ MFG in Riverside, CA. The company has outgrown the property they are currently leasing and the new property will allow them to immediately expand their footprint. Plaza Bank provided the first mortgage and Pacific West CDC was the CDC.
- We financed the $2.48 million acquisition and improvement of three industrial facilities for Polar Corporation in Farmington, CT. This project includes three properties totaling 83,360 SF and allows Polar Corporation to expand operations from the 16,000 SF of space it has outgrown. Liberty SBA provided the first mortgage and Bay Colony Development Corporation was the CDC.
- We financed the $1.02 million acquisition of a light industrial building for Event Resource Group in Acworth, GA. The company will use the space to manufacture temporary structures for events such as the US Open, PGA tour, and Breeders Cup. IBERIABANK provided the first mortgage and Florida Business Development Corporation was the CDC.
- We financed the $12.57 million ground-up construction of an 81-room Candlewood Suites Hotel in Hartford, CT. BLC provided the first mortgage and the Community Investment Corporation was the CDC.
- We financed the $1.22 million acquisition of two office townhouses for Mileham & King in Rockville, MD. Mileham & King is a fabricator of window blinds and shades. Morgan Stanley provided the first mortgage and Chesapeake Business Finance Corporation was the CDC.
- We financed the $3.97 million acquisition and renovation of an existing 7,850 SF medical office for Jeffrey Gross, MD in Newport Beach, CA. The company specializes in neurology, neurological surgery, and pain management. When the renovations are completed the new property will provide the company a medical office with increased space. One West Bank provided the first mortgage and The Mortgage Capital Development Corporation (TMC Financing) was the CDC.
- We financed the $1.56 million ground-up construction of a 2,831 SF single-tenant office building for Valerie Martinez Communications in Claremont, CA. They are a strategic communications firm that specializes in developing policy-driven public affairs programs. Zions Bank provided the first mortgage and Enterprise Funding Corporation was the CDC.
- We financed the $2.22 million acquisition of an industrial building for GymWorld Academy in San Rafael, CA. Gymworld provides gymnastic and cheerleading training for children ages 18 months to 13 years old. Plaza Bank provided the first mortgage and Capital Access Group was the CDC.
If you or someone you know wants to buy, build, or renovate commercial real estate for a small business, let us know right away. Call us at 1-866-622-4504 or email us at firstname.lastname@example.org. We work hard, we work fast, and we’re here to help.
– Your 504 Experts
P.S. In case you’re curious, our first four-loan client was a daycare mini-empire called Leaps & Bounds Learning Center, headquartered in Central Florida. Four SBA 504 loans for one small business probably doesn’t happen often, but we’ve done it twice. Go figure.