David Cappello Secures 98% LTV for NJ Beauty Company to Double Corporate Facilities

$2,000,000 SBA Loan Allows Company to Acquire, Renovate and Fit-Out New Toms River Corporate Headquarters
By: Progress Capital Advisors
Toms River Industrial Park Warehouse Acquisition
Toms River Industrial Park Warehouse Acquisition
TOMS RIVER, N.J. - Sept. 19, 2017 - PRLog -- When a young and rapidly growing NJ based beauty company – a manufacturer of nail polish and salon related accessories -- decided they needed to expand their corporate offices and production facilities after just one year of operating history, they approached David Cappello of Progress Capital Advisors to discuss financing options and how to best leverage their assets for growth.

The Company is a leading innovator and distributor of nail polish, accessories and supplies designed for direct to consumer and B2B sales channels.  They import large quantities of nail polish and materials from sources in Asia then mix, pack and ship from their US facility.  The company has been operating out of a 12,000 SF leased facility that has reached production capacity.

When a 27,467 SF flex building in Toms River went up for sale, the borrower knew it was a perfect opportunity for them to acquire the property and move their operations into the larger, more functional space.  In initial discussions with Cappello a requested $1.6 MM loan, representing an 80% LTV, was needed in order to acquire the facility.  But, expansion meant not only securing the right size facility but also making sure the company had working capital to keep their operations from slowing down during the transition.  David suggested using an SBA 7(a) loan to maximize the loan proceeds providing funds not only for acquiring the subject building, but also for working capital.

Although the perception of SBA loans is that they are very cumbersome and labor intensive, David was able to manage the entire process so that they could focus their attention on running their business.  As a result, David was able to produce a loan commitment from a preferred SBA lender in under 30 days.  He walked his client through the structure of the loan and made sure he focused on every necessary detail.  Additionally, he worked in tandem with the borrower's insurance agent, title company and attorney to ensure a smooth closing.

Cappello secured $2,000,000 for the company to acquire and fit-out the new corporate headquarters representing a whopping 98% loan to cost ratio.  Terms of the loan include a rate of prime +1.75% with declining pre-pay with a 20 year term and 25 year amortization.

Progress Capital Advisors loan programs include Fixed Rate Loans, Construction and Specialty Financing as well as Directly Funded Bridge Loans.  With over $40 Billion in closed loans and $100 Million in bridge and direct lending, we will get you to the closing table … plain and simple.  #thatsPROGRESS

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Source:Progress Capital Advisors
Email:***@progressnj.com Email Verified
Tags:Toms River Real Estate, Sba Loan, Real Estate Finance
Industry:Real Estate
Location:Toms River - New Jersey - United States
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Page Updated Last on: Sep 19, 2017

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