Capital Access Group Helps Owners of Starline Social Club to Secure $2.4 Million in SBA 504 Financing to Purchase Historic Victorian Building in Downtown Oakland, CA, and Add to the Vibrancy of the Community
SAN FRANCISCO, January 7, 2019 (Newswire.com) - Capital Access Group (www.capitalaccess.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped the owners of the Starline Social Club to secure $2.4 million in total project financing through the SBA 504 commercial real estate loan program to purchase the building they were leasing for their business, a three-story, 8,519-square-foot, historic, Victorian building located at 2236 Martin Luther King Jr. Way, in Oakland, CA.
Artists Adam Hatch and Drew Bennett, and restauranteur Sam White, co-founders of the Starline Social Club, are passionate about investing in the Oakland community. The trio leased the original site of the Order of Odd Fellows Lodge, an unconventional building in disrepair, and transformed it into a safe and inclusive bar, restaurant, and social art space with multiple venues and event spaces for live music, dancing, jazz, karaoke, and more, all under one roof.
Tapping into their collective design skills to renovate and transform the historic property, the co-founders found themselves eight years into a ten-year lease in a pressurized real estate climate. When they founded the business, they knew they wanted to buy the building. Two years shy of the lease expiration, an opportunity presented itself.
“As we were founding the business and renovating the space, we were excited about the idea of trying to buy the building,” said Drew Bennett, Co-Director, Starline Social Club. “A lease expiring is often a catastrophic moment for a business. When the opportunity arrived, we knew we had one shot to make an offer.”
Starline’s team of business advisers recommended the SBA 504 loan, primarily for its low down payment, and referred them to Alan Jung, Senior Vice President and Chief Credit Officer at Capital Access Group, to facilitate the process.
“Hitting that injection was a lot of work. Between loans and ownership investments, we were able to raise the money in a way that was not going to overburden the business once the building was secured,” said Bennett.
“Capital Access Group was extremely helpful in the process,” said Bennett. “Alan (Jung) was organized and prompt. He vetted the paperwork, and we moved through it all so efficiently—there was no friction, everything went through swimmingly.”
“The loan will allow us to make serious improvements—upgrades to the HVAC system, ADA access—things that will help to improve and expand our business which, of course, leads to more business and more jobs,” said Bennett. “Right now, we employ 40 people, and now that we’ve secured the SBA loan, we’ll be able to create even more jobs.”
“It was a pleasure working with Adam, Drew, and Sam to help them with SBA 504 financing to secure the future of their business,” said Alan Jung of Capital Access Group. “From creating jobs to restoring a historic Victorian property, these creative entrepreneurs are having a positive impact on Oakland. And now that they own their building, they can invest in further improvements, expand their offerings and provide more jobs to the community.
Bennett, Hatch, and White take the stewardship of Starline’s historic Victorian very seriously.
“We are committed to maintaining the building within its aesthetic and architectural value, one that has been sustained for the last 125 years,” said Bennett. “We are invested in the diversity of our community and creating an environment that positively reflects the spirit of Oakland—through our employees and our clientele.”
About Capital Access Group: Capital Access Group is a leading statewide Certified Development Company based in San Francisco, authorized by the U.S. Small Business Administration to provide long-term, fixed-rate financing through the SBA 504 loan program, which offers 90% financing to business owners for the purchase, renovation, or construction of commercial real estate for their growing businesses. Founded in 1981, Capital Access Group has helped thousands of entrepreneurs grow their businesses and realize their dreams of owning their own buildings. Currently, the SBA 504 interest rate is 4.98%, fully amortized and fixed for 25 years. For more information, please visit www.capitalaccess.com.
Source: Capital Access Group
Categories: Small Business