Architects Utilize 504 Program to Purchase Real Estate and Create Showcase Office Space

For many architects, owning their own firm is the dream which drives their career. In a competitive field such as architecture, the idea of being able to seek out the projects you most want to do and freely making the final decision on design sounds like the ideal way to work.  

What if architectural proprietors could not only own their own firm but ALSO own their own building?   

Property acquisition can help architects grow their business, stabilize their occupancy costs and manage their expenses more effectively. In addition, architects who own their building have the flexibility to design and renovate their property as they see fitessentially advertising their aesthetic to potential clients.  

Architects looking to finance the purchase a building for their business should consider the accessible and affordable SBA 504 loan program. The SBA 504 loan not only helps architects purchase commercial real estate but it also finances the construction of new facilities and the purchase of equipment. The best part is the 504 loan comes with very favorable terms. Business owners can buy their building with as little as 10% down and a below market FIXED interest rate for 25 years.  

TMC Financing, a commercial real estate lender specializing in SBA 504 loans has helped architecture firms secure over $70 million in total project cost.  

Below are a few of our Bay Area architects who purchased their buildings through the SBA 504 program and created stunning spaces that showcased their talents 

Mikiten Architecture: Classic Berkeley in Dark Grey 

Since 1991, Mikiten Architecture has created environmentally responsible, award-winning designs. With a focus on healthy building materials and nature-inspired aesthetics, the husband and wife team have pioneered new developments in universal and sustainable design.  

Mikiten Architecture creates dramatic, creative buildings through collaboration and cutting-edge modeling software. Erick Mikiten, owner and founder of Mikiten Architecture, is a wheelchair rider so universal accessibility is always at the forefront of his designs. 

Mikiten Architecture utilized the SBA 504 loan to purchase a building in Berkeley, CA with a 10% down payment. By purchasing a building for his firm, Erick now has a stabilized, fixed interest rate for 20 years and can focus solely on designing customized projects for his clients.  

Todd Jersey Architecture – Ecologically Sound; Thoughtfully Crafted 

For over 30 years, Todd Jersey Architecture (TJA) has worked to create beautiful, affordable designs. By harnessing the power and efficiency of sustainability, TJA designs are cost-effective and inspiring. 

Following his apprenticeship with a master carpenter, owner Todd Jersey studied in Italy and the Netherlands. In time, he became an accomplished artist, bringing his skill in artistic design to his methods for sustainable construction. 

TJA’s projects include home new construction, residential remodels, commercial tenant improvements, new multi-family housing, non-profit to commercial and institutional projects. With consideration for cost reduction, many TJA projects that were thought to be outside of budget availability were able to be seen through to completion.  

TJA secured an SBA 504 loan to purchase a property in Berkeley with only a 10% down payment. Not only was TJA was able to move into its new modern location; they were able to control their occupancy costs through predictable monthly payments. In addition, their new location communicates their values to clients in its style and materials. 

Tef Design: Human-Centered, Sharp, and Original 

Since 1997, Tef Design has been crafting designs that are “modern, economic, and responsible solutions that foster community, health and well-being and are emotionally-satisfying to those who visit, work and live in them.” With a long history of serving the Bay Area with innovative design, Tef buildings serve as hubs for community engagement, as well as markers of West Coast taste and style. 

After 16 years of paying ever-increasing rents in San Francisco, Tef Architecture made the crucial decision to invest in a commercial real estate purchase.  Property ownership would ultimately combat the volatile lease market they were subjected to.  

Tef Design, recognizing the rapid and shocking increases in lease rates, purchased our building with the help of the Small Business Administration loan program,” states Douglas Tom, Owner of Tef Design. “We moved to our new offices; relocating offices seemed to mark significant change.”  

By utilizing the SBA 504 Program, Tef Architecture was able to acquire a San Francisco property with only 10% down and a long term, below market interest rate.  In addition to the real estate, Tef Architecture was also able to finance the renovation costs as well as the cost of new furniture and fixtures. 

Today, Tef Architecture continues to thrive in their owned space. Without the threat of increasing rent they are able to serve its San Francisco clients worry-free, while benefiting from a below market fixed interest rate. 

Is 504 Financing Right for Your Architecture Business?  

SBA 504 loans are a great solution for architects looking to stabilize their occupancy costs.  Property acquisition through an SBA 504 loan is an accessible and affordable way to grow your business and solidify your financial security later in life. 

TMC Financing is a Certified Development Company that administered 504 loans on behalf of the SBA. TMC operates in California and Nevada and would be happy to provide a free consultation to see if a building purchase makes sense for you and your business. Contact us today for more information or to see if you are eligible. 

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