“If I continued leasing and then eventually lost this property, that would have been the end of Poozeum,” says George Frandsen, owner of a museum featuring coprolites – fossilized poop from all kinds of animals – in Williams, AZ.
Here’s how TMC Financing helped him evolve from leasing to ownership with an SBA 504 loan in partnership with Foothills Bank, securing the home of this educational, memorable, and very fun destination neighboring the Grand Canyon.
Lifelong curiosity turns into a calling
“I grew up in Utah and was always interested in the sciences,” George says. “One day, while in Moab, I bought my first coprolite from a rock and fossil shop and took it to one of my professors, who became an important mentor to me. He told me all about coprolites, what we can learn from them, and where they can be found. That got me started on collecting them.”
He continues, saying, “I wanted to share what I had with the world, so I started with an educational website in 2014.” In 2015, his collection received a Guiness Book of World Records® designation for the largest collection of coprolites – more than 8,000 specimens. In 2020, he received his second record for the world’s largest known single specimen.
“After that the first record, I received loan requests from natural history museums and others who wanted to display items from my collection in their exhibitions,” he adds. With a feeling that he was meant to do something different than the role he had in healthcare administration in Florida, he and his wife started visiting sites in the southwestern U.S.
Creating a brick-and-mortar home for Poozeum
When they saw Williams, AZ, they knew they’d landed on their destination. It’s a small and charming town near the entrance to the Grand Canyon, so visitors are plentiful. What’s more difficult to come by is real estate but, with persistence, George found an opportunity.
“Through Facebook, I found someone who had renovated an historic saloon and it was available to lease. We jumped at the chance,” George says about the property, located at 109 W. Railroad Avenue in Williams. “When the time came for the lease renewal, I told the owner that I’d like to purchase the property.” The price the owner wanted, though, was simply too high.
“I knew that if we didn’t agree on a purchase price, continuing to lease could eventually jeopardize the Poozeum. I couldn’t risk building something there, putting everything I had into it, and then losing it because I didn’t own the property.”
Finally, the owner accepted George’s offer. The next step was financing the purchase.
A ChatGPT recommendation: The SBA 504 loan and TMC
“I’d never had a business loan before and wasn’t sure what to do next,” George says. “I turned to ChatGPT for advice – and it recommended the SBA 504 loan program and TMC Financing.”
The SBA 504 loan helps small business owners purchase commercial properties for their businesses. SBA 504 loans are made in partnership between the business owner, a bank, and a certified development company (CDC), like TMC. It’s a great option for 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.
- Generous funding limits, 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 with a fixed interest rate for the life of the loan. This makes payments predictable and more affordable while stabilizing occupancy costs for decades.
George reached out and soon, he connected with TMC SVP Geoff McGivern.
The SBA 504 with TMC: An easy experience
“As soon as I reached out to TMC, they got in touch and were so helpful and responsive from the start,” George says. “Geoff and the TMC team were encouraging and kind throughout the process and made the whole thing really easy and seamless.”
The deal included a 10% down payment for the $615,000 property. George says that although his current payment is slightly higher than the lease, “It’s worth it. Now, every time I make a payment, I’m reinforcing Poozeum’s long-term stability while building equity.”
The business model he developed is straightforward – admission to Poozeum is free so that everyone can come, as often as they’d like. It’s supported through onsite and online retail sales. “All of our merchandise relates back to coprolites, dinosaurs, and fossils,” George explains. “You’ll find items that are totally different than at other destinations in the area. And, given the nature of Poozeum, we can have a lot of fun with what we offer.”
Geoff says that working with George on this deal was both satisfying and enlightening. “TMC has helped a lot of entrepreneurs secure commercial real estate for their businesses, but this is the first and only Poozeum in our portfolio. And George is so passionate about igniting curiosity and exploration while having fun with Poozeum, it was truly a pleasure to help him.”
TMC Financing helps build strength and stability
“This is an investment in Poozeum today and, should we outgrow it down the line, we can lease it or sell it at a profit. Those are great options that support our work today and help to ensure my family’s financial security down the road,” George says.
If you’d like to learn more about buying owner-occupied commercial real estate for your small business, TMC can help. To learn more, contact us today.