Harrington’s Bar & Grill: A San Francisco Legacy and the SBA 504 Loan
“We’re continuing the legacy of the Harrington family and all they built over nearly a century, while helping to reinvigorate the local economy,” says Ben Bleiman who, along with his partners, reopened Harrington’s Bar & Grill – a beloved Irish tavern that had operated at 245 Front Street in the city’s Financial District since 1935, but had closed due to a series of challenges after the pandemic. “Our teams at TMC and Five Star Bank understood what this meant to us and to our community.”
Here’s how the opportunity evolved for Ben and his business partners – and how TMC Financing and Five Star Bank partnered on an SBA 504 loan to help them achieve their goals.
Serendipitous connections create an opportunity
Ben brings tremendous experience to this new venture – between them, he and a business partner, Duncan Ley, had owned a dozen bars and restaurants in San Francisco before selling them over several years.
“I absolutely believe that nightlife and fun are essential to downtown revitalization,” he says, “and that’s where I’m most effective.” That’s evident in his work as President of the Entertainment Commission and as the founder of the San Francisco Bar Owner Alliance.
About Harrington’s legacy, Ben expands on the tavern’s significance in San Francisco history, saying, “Along with the politicians and business leaders who were regulars here were people in the local commercial real estate industry – it became the place for them to hang out.”
Among those industry regulars were Chris and Jason Freise, leaders of Redco Development, who were friends of a friend to Ben and Duncan. “I was ready for the next opportunity and that led to an introduction to the Freises, and then the Harrington family.”
“It all felt, and still feels, so serendipitous,” Ben says.
A partnership, a reopening, then a purchase
Before long, Ben, Duncan, the Freise brothers, and a longtime associate, Lucia Camarada, formed a business partnership, Friends of Harrington’s LLC, to reopen and operate Harrington’s – with the family’s blessing.
“The third generation of the Harrington family had been running the business and it was, of course, a very difficult decision to close. After meeting with us, though, they knew our goal was to preserve and grow the legacy that they’d built and that brought some comfort,” Ben says. “And between the relationships and the experiences that our group brings to the table, the Harrington family knew the institution that is Harrington’s would be in good hands.”
By December 2023, the partners secured a master lease with an option to purchase the property, brand, and business assets. Harrington’s reopened on St. Patrick’s Day in 2024, with Ben and Lucia running the business’s day-to-day operations.
The next step was finding the right lending partners to finance the purchase.
Securing Harrington’s with an SBA 504 loan from TMC
“We feel a responsibility to the Harrington family and the friendships and marriages and the business and political deals that took place here over nine decades, so this was a significant purchase on a lot of levels,” Ben admits. “And we needed the right financing to make it work.”
As commercial real estate brokers, the Freises had closed several deals financed through the SBA 504 loan program and knew that it would be a great option for the Harrington’s purchase. These loans are made in partnership between the business owner, a bank, and a certified development company (CDC), like TMC. It’s an outstanding option for small business owners who want to purchase commercial property for their businesses because it offers:
- A down payment of only 10% for most projects, which is significantly less than the 30-40% that’s required for conventional commercial mortgages.
- A fixed interest rate for the life of the loan, which can be from $50,000 to $5.5 million for the SBA 504 portion, with no maximum for the first mortgage. TMC has financed projects valued from $500,000 to $44 million.
- A 25-year term for most SBA 504 projects. This makes payments predictable and more affordable while stabilizing occupancy costs for decades.
“As far as lenders go, we have a wonderful relationship with Five Star Bank and the team at TMC knew and loved Harrington’s, so the financing partnership came together nicely,” Ben says. “And our TMC team was amazing. They looked beyond the spreadsheets to understand the bigger picture of who were are and what we bring to the table.” This deal, which totaled about $4.3 million including the property and improvements, required 10% owner equity around $430,000.
Ben stresses the importance of working with the right lending team. “TMC brings such tremendous experience while offering a personal touch that’s hard to find today,” Ben says. “Between our partnership group and the teams at TMC and Five Star Bank, it felt like an old-school banking relationship – and that made it a really refreshing experience.”
“Harrington’s has a special place in TMC’s collective heart, so we were thrilled when Ben and his partners stepped up to bring it back to life,” says Anna O’Brien, TMC SVP, Business Development. “The SBA 504 program was essential to making this work, too, because it made the purchase feasible now and more affordable for the long term. Ben and his team are bringing fresh energy to a legacy business, Harrington’s is back, and San Francisco’s downtown core is coming back to life around it. TMC is so happy to be a part of that success.”
TMC and the SBA 504 loan: Secure property for your legacy business
Ben offers this insight to other business owners, saying, “If you can do it, owning the property is the smartest thing you can do for your business, and for yourself and your family. It’s a long-term commitment that will strengthen and grow. And the SBA 504 is such a great way to purchase – every small business owner should know about it.”
If your business is located in our service area of California, Arizona, Nevada, Hawaii, and Oregon, contact TMC Financing to get started. If your business is located outside of our service area, try the SBA’s Lender Match tool to find a qualified certified development company (CDC) lending partner near you.
About TMC Financing
TMC Financing is a nonprofit 501(c)(4) Certified Development Company (CDC) with a mission to promote economic development and job creation by helping small businesses access affordable financing. Since its founding in 1981, TMC has provided approximately $16 billion in SBA 504 commercial real estate financing to over 8,000 small businesses across Arizona, California, Hawaii, Nevada, and Oregon. These efforts have helped create more than 63,000 jobs. TMC is recognized as the #1 SBA 504 lender in the nation, offering long-term, fixed-rate financing that empowers small business owners to purchase, construct or refinance real estate and major fixed assets to grow their operations.