New owners add to their portfolio with multiple SBA 504 hotel loans
As published in Hotel Interactive:
TMC Financing, the leading provider of SBA 504 loans in Northern California, today announced that experienced hotel managers, Kishor and Nita Patel have purchased the Casa Blanca Inn, located near the Santa Cruz Beach. The hotel features a 54,014 square foot building with 33 rooms located at 101 Main Street in Santa Cruz. The SBA 504 loan provides a 20-year, fixed-rate, and total project cost for the acquisition was $7.2 million. The new Casa Blanca Inn owners also own and manage the Bay Front Inn, also located in Santa Cruz.
“The financing of this project would not have been possible without the SBA 504 program’s low down payment of only 15 percent, which allowed the owner’s to retain much needed capital to cover additional expansion costs,” said Bruce Whitaker, Senior Vice President of Business Development at TMC Financing. “This is just another great example of why business owners choose the SBA 504 loan program; it gives growing businesses opportunities that would not be available to them otherwise.”
Bruce Whitaker, Senior Vice President of Business Development at TMC Financing, worked with the Casa Blanca Inn owners to provide financing through the SBA 504 commercial real estate loan program. The lender on the project was Bank of The Orient in San Francisco, and the hospitality management firm that facilitated the transaction was provided by Neville Parujanwala of Hospitality Funding, based in Daly City.
Casa Blanca Inn is family owned by Kishor and Nita Patel, both highly experienced hotel owners with over 34 years of hotel operating experience. Casa Blanca Inn is an upper mid-size Oceanfront hotel that resides on 1.25 acres of land, which feature ocean views and private balconies. The Inn overlooks Santa Cruz’s main beaches, Beach Boardwalk, and the Municipal Wharf.
About the SBA 504 Program
The SBA 504 Program 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 June SBA 504 interest rate is 5.06% 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).
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. In 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. For more information, visit tmcfinancing.com.