Kilowatt Events, Inc., a specialized event production company, has successfully transitioned from leasing to owning by utilizing the Small Business Administration’s (SBA) 504 Program. The company acquired a 6,000-square-foot facility in San Diego, CA, for $2.6 million. Facilitated by TMC Financing, this 25-year, below-market fixed-rate loan not only ensures stable occupancy costs but also sets the stage for the business’s continued growth.
Founded by Anthony Dittmann and Jenn Marks in 2015, Kilowatt Events is an industry leader, orchestrating high-profile events from televised sporting spectacles to red carpets. Acting as general contractors, they have an extensive client list that includes some of the most recognizable names in the entertainment and corporate worlds, such as the NFL and ESPN.
Navigating the Space Crunch and Stepping into Ownership with TMC Financing
Over the years, Kilowatt Events has seen rapid growth and their leased space was not large enough to accommodate their needs. “We had outgrown our old space and really wanted the stability of owning property,” said Anthony Dittmann, co-founder, and CEO of Kilowatt Events. “We began with just one employee and now we are a team of 13,” Dittmann continues. “Operating from a confined single-room office with limited storage was hindering our potential.”
The new property at 1102 Morena Blvd offers ample space for warehouse storage and Kilowatt’s growing team.
By securing a 25-year fixed-rate loan through the SBA 504 Program, Kilowatt has insulated itself against potential rent hikes and market instabilities. Merri Adams, senior vice president at TMC Financing, explains, “Anthony and Jenn have strategically positioned Kilowatt Events to withstand market uncertainties and potential rent increases. The 504 program’s low down payment requirement and fixed rate make it an invaluable asset for savvy business owners looking to secure their future.”
Planning for the Future
Alongside the immediate benefits of additional operational space, the new property affords Kilowatt Events the flexibility to lease unused space. “The 504 program typically requires that owners occupy 51% of the building, which allows us to sublease the remaining space. This feature is a win-win; the previous owner will stay on as a sublessee, helping us manage our mortgage expenses and save for the next chapter,” Dittmann noted.
For business owners eyeing property ownership, Dittmann advocates that the SBA 504 Loan Program is an effective strategy. “If you plan to stay in business for the long haul, the 504 loan is the best choice. Owning property not only shields you from rent increases but also aligns with long-term growth plans.”
About TMC Financing
Founded in 1981, TMC Financing is the leading provider of SBA 504 commercial real estate loans in the nation, funding projects worth over $12 billion across Arizona, California, Nevada, and Oregon. Over 6,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs. Contact us today to learn more.