{"id":21210,"date":"2022-11-23T09:04:03","date_gmt":"2022-11-23T17:04:03","guid":{"rendered":"https:\/\/www.tmcfinancing.com\/?p=21210"},"modified":"2022-12-06T15:33:25","modified_gmt":"2022-12-06T23:33:25","slug":"eberhard-equipment-lesee-to-property-owner","status":"publish","type":"post","link":"https:\/\/www.tmcfinancing.com\/es\/eberhard-equipment-lesee-to-property-owner\/","title":{"rendered":"Eberhard Equipment: From Long-Term Lessee to Property Owner in Santa Ana, CA"},"content":{"rendered":"

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\u201cWe leased this property for a long time and when the owner was finally ready to sell, we knew it was a great opportunity,\u201d says Steve Eberhard, a majority owner of Eberhard Equipment<\/a> in Santa Ana, CA. Eberhard Equipment has been in operation since 1945 and in its current location since the 1970s. Here\u2019s how Financiamiento TMC<\/a> helped Steve and co-majority partner, Rosendo Alejandre, secure great terms with an SBA 504 loan<\/a> \u2013 10% down and a 25-year amortization with a fixed interest rate for the life of the loan \u2013 for the $8.6 million deal.<\/p>\n

Eberhard Equipment<\/a> specializes in agricultural equipment, including Kubota tractors and Jacobsen mowers. The company has occupied the nearly 10,000 sq. ft. building, which sits on approximately two acres, since 1977. The business has nearly two dozen employees, including many who have been with the company for decades and who are also employee-owners.<\/p>\n

TMC Financing is presented as the preferred SBA 504 lender<\/strong><\/p>\n

\u201cBefore the previous owner had decided to sell, we\u2019d begun looking at other properties in our area. That\u2019s when our real estate broker, Greg Diab of Lee & Associates, told us about TMC Financing and we had conversations with TMC\u2019s Business Development Officer Jennifer Davis early on,\u201d Steve says. \u201cWhen we looked at all our financing options, the SBA 504 program had clear advantages, so we were ready to move forward with that if we found the right property. And, fortunately, the previous owner decided to sell at exactly the right time for us.\u201d<\/p>\n

The SBA 504 loan program\u2019s terms seal the deal<\/strong><\/p>\n

\u201cWe were fortunate because we had a long-term, below-market rate lease, which meant that we were able to negotiate a more favorable sale price,\u201d Steve explains.<\/p>\n

This was a key factor in the sale, as industrial property valuations have skyrocketed in Santa Ana<\/a>. In addition, the 10% down payment requirement that\u2019s standard with most SBA 504 loan deals was also a game-changer, compared to typical down payment requirements of 20-30% (or more) for similar commercial properties when purchased with conventional commercial mortgages or through private lenders.<\/p>\n

SBA 504 loans are made in conjunction with the borrower, a commercial bank and TMC Financing for the SBA portion of the loan. Eberhard Equipment\u2019s long-time commercial bank, Partners Bank of California, partnered on the SBA 504. Here\u2019s what that might look like for a deal such as Eberhard Equipment\u2019s:<\/p>\n