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Partner Energy Plays Role in Financing of Two California Real Estate Projects
Grocery chain and trade show contractor receive $7 Million in Financing under new SBA 504 energy efficiency program.
"The SBA has amended its 504 loan program where borrowers who reduce energy consumption by at least 10 percent or generate renewable energy may qualify for a SBA loan of up to $4 million, double the current maximum allowable amount," says Tony Liou, president of Los Angeles-based Partner Energy. “With the new SBA 504 energy efficiency loan program, interested borrowers can now consider project sizes up to $10 million whereas in the past, project sizes were limited to $5 million. In both instances our clients received significantly higher loan amounts as compared to the limits imposed for loans without an energy efficiency or renewable energy component from the SBA under the new energy efficiency program at a time when real estate loans of any kind are extremely difficult to find.”
Golden Fremont, Inc. (d/b/a Marina Foods), a specialty Asian grocery store chain based in Fremont, CA received approximately $4 million under the SBA 504 energy efficiency loan program to build a new $9 million food market in Fremont. Golden Fremont received the financing after Partner Energy created an energy model to predict the new food market’s potential energy consumption. The new 30,600 square-foot store, which will be designed following California’s strict Title 24 energy efficiency requirements, was projected to utilize at least 10 percent less energy on a per square foot basis than a recently renovated food market currently occupied by the borrower.
Partner Energy also assisted Blaine Convention Services (BCS) in obtaining approximately $3 million under the SBA 504 energy efficiency loan program for the acquisition of a former metal plating factory in Brea, CA in a transaction valued at approximately $8 million. The 107,000 square-foot building will be used as a new headquarters and warehouse for Blaine. Partner demonstrated to the SBA that with existing energy saving features along and some modifications, the new building is projected to be at least 10 percent more efficient than the space currently occupied by BCS.
“The loans on the two projects were approved during a time when real estate financing is very hard to find,” says Liou. “The new SBA 504 energy efficiency loan program promotes energy efficiency and renewable energy projects and encourages real estate lending by extending credit for qualified borrowers and projects.”
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Partner Energy (www.ptrenergy.com)