Liberty SBF provided a $2,070,000 SBA 504 loan to acquire and renovate an office building located in Portland, OR. The property is a two-story commercial building that had been built out for a night club and three apartment units.
The Borrower will perform a $1.3MM renovation to convert the building into office space. Upon completion, the Property will contain 5,114 SF of net rentable area consisting of private offices, meeting space, and common office areas. The company will occupy 100% of the property for its consulting and training business.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF provided a $589,856 Conventional loan for the acquisition of a mixed-use property located in Brooklyn, NY. The appraised value of the property resulted in a Liberty 1st lien LTV of 51.7%. The Property is a 2,470 SF, two-story industrial/office property in Brooklyn. The first floor of the Property is industrial space and the second floor is office space. The Property is zoned and functional for warehousing, manufacturing, retail, and office uses.
The borrower will fully occupy the property. The company manages its client’s construction process from beginning to end, ensuring both quality and compliance.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF provided a $720,000 first mortgage and a $576,000 interim second mortgage for a total of $1,296,000 in SBA 504 financing for the acquisition of a 3,235 SF office and industrial building in Brooklyn, NY. The building consists of 1,985 SF of industrial space and 513 SF of office space.
The company provides electrical services to buildings under construction. Services include wiring installation, electrical breaker box installation, fixture installation, and utility hook-ups, among others. The majority of its projects are residential properties.
Liberty SBF also provided the borrower with additional SBA 504 financing for the purchase of a second property. Click here to read the details of that deal.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF provided a $872,500 first mortgage and a $698,000 interim second mortgage for a total of $1,570,000 in SBA 504 financing for the acquisition of a 5,130 SF industrial building in Brooklyn, NY. The building consists of 4,617 SF of industrial space and 513 SF of office space, as well as a small cellar utilized for additional storage.
The company provides electrical services to buildings under construction. Services include wiring installation, electrical breaker box installation, fixture installation, and utility hook-ups, among others. The majority of its projects are residential properties.
Liberty SBF also provided the borrower with additional SBA 504 financing for the purchase of a second property. Click here to read the details of that deal.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Hangar exterior with rolling gates. 3d illustration
Liberty SBF has closed a first mortgage loan totaling $2.2MM for the acquisition of a 7,500 SF warehouse in San Francisco, CA. The building includes three suites which is occupied by two other tenants and the borrower.
The borrowing entity is a halal butcher shop specializing in
the processing and sale of poultry. They will use most of the property to sell a
variety of poultry to retail customers and local restaurants in the Bayview
neighborhood and greater San Francisco Bay Area.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has closed a first mortgage loan totaling $2.2MM for the refinance of an AmericInn by Wyndham, a three-story, 69-room, limited-service hotel located in Mounds View, MN. The borrower will use the funds to restructure the ownership of the property.
The AmericInn by Wyndham in Mounds View, in the growing Minneapolis MSA, opened in 2002, and underwent a $1 million+ renovation in 2018. Connected to Mermaid Entertainment & Event Center, the National Sports Center, and various corporate offices, the hotel benefits from both local and regional demand.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has closed a $1.465MM Conventional loan for the refinancing of a one-story, 12,700-square foot industrial property, located within the Rancho Center Industrial Park in Rancho Cucamonga, CA. The company fully occupies the space. The loan will also fund equipment acquisition and additional working capital.
The Southern California property is located 15 miles north of Riverside, CA and 37 miles east of Los Angeles, in the fast-growing Inland Empire MSA, served by Interstate 10 and 15 freeways. The company services manufacturers with a specific niche market in the pool and spa industry, in addition to the aerospace, furniture, construction, lumber yard, and boat and RV industries. The founders and owners have successfully operated the company for more than 30 years. They acquired the property in 2006.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has closed a $3.39MM conventional loan for the refinancing of a 16-unit adult residential facility located in Vallejo, CA. The loan will refinance the existing debt on the property, and provide funding for the borrower’s acquisition of a 49-bed assisted living facility in Mill Valley, CA.
Built in 1965 and with 100% occupancy, the 16-unit, 32-bed transitional facility for mentally challenged adults prepares residents for independent living. The appraised value for the Mill Valley property was $7.0MM, excluding business value of $700K. Liberty’s 1st Lien represents an as-is LTV of 48.5%. The principal guarantors have more than seven years of experience in the development, rehabilitation, and management of senior/adult care facilities.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has closed a $3.53MM conventional loan for the refinancing of two assisted living properties in Saint Cloud and Palatka, FL by an experienced owner/operator, Aleph 1 Realty, LLC. The properties are the two-story, 40-bed Homestead Retirement Home in Saint Cloud and Kiva of Palatka, a one-story, 40-bed assisted living facility.
Paramount ALF, Inc. is the operating company that has run both facilities since 2016, when the borrower purchased the properties. Built in 1909, the two-story, 40-bed Homestead Retirement Home in Saint Cloud is 100% occupied. Kiva of Palatka, built in 1986 and 2003, is 70% occupied. The borrower, Aleph 1 Realty, LLC, has extensive experience as owner and operator in the assisted living industry.
The loan enabled the borrower to make functional improvements of both properties, and to buy out a business partner’s remaining interest.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has closed a $1.04MM first and interim second lien SBA 504 loan for the acquisition of a one-story, 4,150 SF office building, located in Federal Way, WA. The company also acquired the property’s 20,652 SF of excess land for parking and for potential future development.
The loan for the property, located 10 miles northeast of Tacoma and 24 miles south of Seattle, comprises the $613.3K SBA 504 first mortgage and a $429.3K SBA 504 interim second mortgage. The 24-hour towing and roadside assistance provider in Seattle bought the distressed business in December 2017, and has significantly improved its performance since acquisition
The company will occupy the building area that is not occupied by an existing tenant, and use the excess land for its towing company. The building was constructed in 1988.
How can we help?
Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.
Liberty SBF has become a thought leader in commercial real estate finance with articles published online and in major industry media outlets. Below are 10 articles published by Liberty SBF or in influential publications with the company’s input.
1) Non-Bank Lending Is the Solution for Small Business CRE Loans
Strong demand for capital in the commercial real estate sector is expected to continue for the foreseeable future. Historically low interest rates, a robust economy, and strong employment numbers are boosting a surge in CRE demand across the country. People might assume that all commercial real estate lenders are alike, but there are many types of financial institutions that work with CRE borrowers.
Despite what you might be hearing in the news, in today’s strong economy, retail trade continues to grow. April 2019 saw a year-over-year 3.1 percent increase in US retail sales.
Find out how business owners can thrive in the new retail ecosystem especially with an SBA 504 loan.
3) Green Office Properties & the SBA 504 Loan
When you acquire a green office property you can help protect the natural environment, have a healthier workplace, and take advantage of the special SBA 504 Green loan program, when the office property you are purchasing meets certain environmental standards.
Find out advantage of SBA 504 financing for office properties here.
4) Loan Interest Rates for Dummies (and the Rest of Us)
We spend a lot of time talking about interest rates because they affect so much of our lives. On a personal level, they govern the cost of our mortgage, our credit card bill and our car payment. In business, they affect our ability to grow and expand, to invest in new equipment, and to purchase commercial real estate.
But how well do we really understand interest rates? Where do they come from? What do they mean, and how can we make smart financial decisions based on our expectations for future interest rates?
5) Characteristics of an Industrial Real Estate Hot Spot
Over the past few years there has been a revitalization of the industrial sector, driven primarily by e-commerce retailers looking for warehouse space that meets their specific needs.
On paper, that looks like decreased industrial vacancy and increased rents. What really makes an industrial hot spot in different regions?
6) The Interim Second – a Critical Element of Every SBA 504 Loan
If you’re familiar with SBA 504 loans, you’re likely at least familiar with the term “interim second.” But there’s also a good chance that you may not fully understand what an interim second is, and how critical it is to SBA 504 financing.
7) What a 25-Year Term on SBA 504 Loans Means for Business Owners
Last year, the SBA made the first major change to its 504 loan program in over 30 years: It added a 25-year term. Now, businesses owners applying for a SBA 504 loan can choose from a 10-, 20- or 25-year debenture. What’s different about a 25-Year SBA 504 loan?
8) Scale the Multifamily Mountain with a Bridge Loan
When your multifamily property deal needs to close before your agency loan is approved. When this happens, having a strong bridge lender on speed dial can make a commercial mortgage broker look like a hero to their client.
Find out more about bridge lending for multifamily here.
9) Spotlight on Self-Storage: What’s all the Buzz About?
This asset class may not exude the glamour of a shiny downtown office tower, but self-storage assets have for a long time been the unsung heroes of commercial real estate investments. People are talking more and more about self-storage.
The US hotel industry saw another record year in 2018, reaching absolute values that were the highest ever benchmarked. A 10th consecutive year of growth is predicted for 2019, according to CBRE Hotels Americas Research. As experienced lenders, we are convinced that the best, most cost-effective solution is to finance your hotel is with an SBA 504 loan.
In this article, we will walk you through today’s peak hotel market, as well as recent changes that affect SBA 504 loans.
Despite what you might
be hearing in the news, in today’s strong economy, retail trade continues to
grow. April 2019 saw a year-over-year 3.1 percent increase in US retail sales.
Despite the convenience of ecommerce, in-store shopping remains dominant.
Sixty-four percent of Americans today are shopping in-store vs. 36 percent
shopping online. Shopping in stores
accounted for 85.7 percent of retail sales in 2018. Most consumers still enjoy
and value the physical shopping experience, where they can see, hold, touch,
and try on merchandise before buying.
Ecommerce famously has had a negative impact on stores and shopping malls, and many observers hold ecommerce chiefly responsible for the numerous store closures and downsizing of the past few years. The challenges ecommerce presents to real estate are complicated. However, we discern potential areas for growth in the retail CRE sector, especially for owner-users. Commercial real estate pundits who predict doom, gloom, and the eventual loss of retail assets’ value may be blinding themselves to today’s opportunities.
Mixed-use properties
Mixed-use properties are particularly well suited to these changing times. Retail owners have by now pruned their dead or dying properties and changed their focus to higher-growth retail and mixed-use projects (retaildive.com). The owner/user model, where the owner’s business occupies at least 51 percent of the net rentable square footage of a property, is eligible for advantageous SBA 504 loans. The commercial and residential combination is common for SBA-accepted properties, e.g., a retail business below and rental apartments above.
An SBA 504 loan we recently arranged for the acquisition of a mixed-use, three-story retail/residential building in Brooklyn, New York, is a good example. The buyer, Brooklyn Brokerage, is an independent Insurance agency that will occupy the ground-floor commercial unit and a second-floor apartment unit for the business, and lease a third-floor apartment unit for additional income from the property. this type of small storefront building with apartments above and retail below is a common sight in New York City. The commercial ground floor usually occupies less square footage than the residential portion above. Urban infill markets with walkable retail such as the property described above, offer generally stable opportunities, especially when they are well well-maintained, and storefronts are visible from the street.
“Total Commerce”
As retail evolves at a rapid pace, shopping today is an anytime, anywhere, 24/7 activity. The boundaries between brick-and-mortar stores and e-commerce are blurring for general merchandisers. No longer this-or-that, either/or, it is one, total commerce ecosystem, and smart retailers will keep up with the trend. “The message needs to be: This is how consumers are choosing to shop. We need to be there in whatever way they want us to be,” according to cnbc.com.
Many online retailers are now finding it profitable to open brick-and-mortar outposts that complement and facilitate their online sales and deliveries. As these sellers scale up, the move from “click to brick” is necessary for continued growth. Digital native brands will open approximately 850 physical stores over the next five years, according to a report by JLL on more than 100 top online retailers. Amazon’s acquisition of Whole Foods is part of this trend, as well as its physical retail sites Amazon Books, Amazon Go, AmazonFresh Pickup, Amazon Pop-Up stores, and Amazon Hubs for package pick-ups and drop-offs, with plans to open hundreds more. A recent study by ICSC indicated that when native online retailers open brick-and-mortar stores, they experience a 45 percent increase in online traffic in that market area.
Further timely investment opportunities are emerging from the repurposing of abandoned big box stores and retail malls to create spaces for ecommerce warehousing and fulfillment operations.
Service Retail
Retailers know that one key to differentiating their businesses and attracting new and loyal customers is to deliver superior customer service, beginning with the first-time potential buyers walk in to their stores. The key is to develop a relationship with the buyer that will translate into repeat business and word-of-mouth referrals. Service retail will never go out of style, but it is evolving in line with today’s market conditions. According to retaildive.com, store closures have peaked by now, and physical retailers are going all out to compete by reinvesting in their stores.
The retail-as-a-service concept has expanded to experience-driven retail that creates an attractive, even entertaining atmosphere that fosters a sense of social community. Retail Prophet CEO Doug Stephens has define the concept as “hosting brands in a space that is curating that space in a very particular way, employing great design, creating great online content,” as well as great staffing, merchandising and analytics. For example, the online furniture retailer Wayfair is opening a store with showrooms and displays that will include interior designers to help customers make choices (Bloomberg.com). Other owner-users are converting industrial-type properties, such as abandoned big box stores, into mixed-use office and ecommerce fulfillment centers.
Retail innovations
Retailers are experimenting with technology, location size and various customer services. In line with the function of stores meeting consumers’ desire to see, hold and touch a product before buying, the retail chain b8ta’s 15 stores, plus one in Macy’s in New York City, serve as presentation centers for consumer electronics and other innovative products. Some chain retailers are downsizing their stores, including Ikea and Nike. The Nike Live concept has localized products and an intimate feel, with an emphasis on mobile technology and tie-ins for NikePlus members.
Another great example: Nordstrom was losing traffic in its department stores due to the popularity of its online sales. It is expanding its service-hub Nordstrom Local concept that combines several of its most popular or highly demanded services under one roof to serve customers in their own local markets. The boutique stores have no inventory; customers can pick up online orders. “Local” isn’t a mini-Nordstrom store; according to forbes.com, it’s “a wholly new offering seeking to meet customers where they [a]re in a remarkable, intensely customer relevant way.”
Financing
Another great example: Nordstrom was losing traffic in its department stores due to the popularity of its online sales. It is expanding its service-hub Nordstrom Local concept that combines several of its most popular or highly demanded services under one roof to serve customers in their own local markets. The boutique stores have no inventory; customers can pick up online orders. “Local” isn’t a mini-Nordstrom store; according to forbes.com, it’s “a wholly new offering seeking to meet customers where they [a]re in a remarkable, intensely customer relevant way.”
Brick-and-mortar retail properties continue to evolve in many ways, and, we believe, will offer more and more options for investors. When it comes to financing mixed-use properties with retail components, the SBA 504 program has advantages that no other can equal, including 90 percent LTV (loan-to-value ratio) financing, a low fixed rate, and up to 25-year terms. We specialize in helping borrowers though the SBA 504 loan process to ensure success. When you work with an experienced SBA lender like Liberty SBF, you can be confident that we will anticipate any problems and help you overcome any potential obstacles.
Interest rates are low, and now is the time to lock in your fixed-rate SBA 504 loan. Contact Liberty SBF, and we can get the job done in 45 days or less.
The SBA 504 loan program reached a couple of milestones this month. First, the 25-year loan program (which you can read about in our by-lined article here) reached $1 Billion in lending, just under a year since the program’s first funding in July 2018. This figure represents 1,289 fixed-rate 504 loans to U.S. small businesses.
The 25-year maturity’s success is attributable to an outstanding interest rate, which is fixed for 25 years. Over the past twelve months, the average effective rate for the 25-year product was below 5%.
The second big news is the 20-year SBA 504 loan funding at a historically low of 3.98%. This is the lowest it’s been in the program’s 33-year history, and below the December 2012 record of 4.01%.. At 152 basis points under the Bank Prime Rate, the June funding is the furthest below prime that 20-year rates have been since May 2007. (See chart above.)
Clearly, no time has ever been better for SBA 504 borrowers to lock in a fixed-rate commercial property loan. Beat the rush that will be triggered by the new low rates, and contact us today to get started. Liberty SBF can get the job done in 45 days or less.
