New Owners Acquire Comfort Suites Near San Jose Airport for $6.6 Million. TMC Financing Provides SBA 504 Financing for Hotel Acquisition
Online, March 5, 2014 (Newswire.com) - TMC Financing today announced that the Comfort Suites franchise has acquired a location near the San Jose airport with a 20-year fixed-rate, SBA 504 loan for $6.6 million. The project showcases a 34,322 square foot building located at 1510 North First Street in San Jose. The financing enabled Comfort Suites to reduce energy consumption by up to 13.5%, and retain working capital through a low down-payment.
"By partnering with TMC, the new owners have been able to open their fourth hotel franchise with another SBA loan," said Barbara Morrison, President and CEO at TMC Financing. "Some business owners may not realize there's no limit on the number of SBA 504 loans one borrower can hold. This is another attractive aspect of the SBA 504 program. In recent years the SBA 504 program has expanded to allow larger loan sizes for growing businesses."
Bruce Whitaker, Senior Vice President of Business Development at TMC Financing, worked with the Comfort Suites franchise owners to provide financing through the SBA 504 commercial real estate loan program. The lender on the project was Redwood Credit Union in San Francisco, and the hospitality management firm that facilitated the transaction was Neville Parujanwala of Hospitality Funding, based in Fremont.
"Thanks to TMC Financing for educating us on SBA's 'Go Green' policy; we were able to access more SBA funds," said Jashvant Patel, co-owner of the Comfort Suites franchise at the San Jose Airport. "We closed escrow successfully and were very happy with the coordination between TMC, Hospitality Funding and Redwood Credit Union. We are now operating the Comfort Suites franchise successfully, with an injection of merely twenty percent!"
Comfort Suites San Jose Airport is now family owned by Jashvant and Hasaben Patel, both highly experienced hotel franchise owners with over 30 years hotel operating experience. Comfort Suites is branded under the Choice Hotels International (NYSE: CHH) group. Choice Hotels currently franchise more than 6,200 hotels, representing more than 500,000 rooms, in over 30 countries and territories.
About the SBA 504 Program
SBA 504 financing offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital which can be used to further grow the business and create new jobs. The February SBA 504 interest rate is 5.30% fully fixed for 20 years. The typical loan structure for an SBA 504 loan comes from a first mortgage with a conventional lender and a second mortgage from a certified development company (CDC).
About TMC
TMC Financing provides Small Business Administration (SBA) 504 real estate financing and is the leading Certified Development Company (CDC) in Northern California and Southern Nevada. During the past 30 years, TMC has provided over $7.5 billion in SBA 504 financing for more than 4,500 businesses. This financing has resulted in the creation of over 33,000 jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade. TMC's experienced team works directly with borrowers, lenders and real estate brokers to tailor financing packages that meet SBA program guidelines and the borrower's credit capacity. For more information, visit tmcfinancing.com.
