“When you hear about the SBA 504 loan for commercial properties, it almost seems too good to be true,” says Sean Wells, founder and co-owner of Roast n’ Post production studio and micro-roastery in Emeryville, CA. “But there are no downsides. Now, we have this amazing building and we can continue to grow as part of this community, which is really important to who we are as a business.”
Here’s how TMC Financing helped Sean secure an SBA 504 loan to purchase a historic, 3,000-square-foot building for Roast n’ Post’s new home.
A space that fits a growing studio for the long run
Roast n’ Post is a post-production studio for color, sound, and other specializations for the film and television industry. Their reputation has led to an impressive client list that includes Disney, Netflix, HBO/Max, Lucasfilm, Salesforce, Lucid Motors, Google, and the Golden State Warriors, with more than 250 episodes of Star Wars, 30+ features, music videos, and over a thousand commercial projects and numerous awards to their credit.
The “roast” part of their name comes from their love of coffee and, as Sean explains, “We spend many hours a day working in darkrooms, so good coffee has always been part of our culture and brand.” While it’s not a revenue-driver, it’s an essential part of their community and industry identity – and a big help when it comes to getting projects to the finish line.
Roast n’ Post launched in 2013 and moved into a 1,300-square-foot space in 2017 that Sean outfitted for post-production work. Their growing clientele has led to a growing team, too, and the need for more space. That led Sean to search for a new home for Roast n’ Post.
“When the business launched, it was pretty much just me doing the work as a freelancer, but then our reputation grew and along with it, our workload and staff,” Sean explains. “We’ve currently got five full-time employees and we work with another 5-7 contractors.”
A learning experience leads to the SBA 504 loan and TMC Financing
Sean says, “This property looks like a beautifully designed live-work loft, so I approached the purchase thinking it could be a residential loan, only to find out we’d need a commercial mortgage, which was uncharted territory for me.”
Fortunately, Sean’s real estate broker was familiar with the SBA 504 program. Typical SBA 504 deals include bank financing for 50% of the project’s cost and an SBA 504 through TMC for 40%, along with a 10% owner down payment – far less than the 30-40% or more required for a conventional commercial mortgage.
“The ten-percent down-payment is probably the biggest factor in our decision,” Sean says about choosing the SBA 504 to finance his purchase. “I didn’t even know about the SBA 504 program before this and, in reality, it became the only viable option because a larger down payment would have really strained our cash flow.”
Sean’s broker recommended a meeting with Yvonne Santos, an experienced SBA lending representative – and Yvonne recommended TMC Financing as the partner.
Soon, TMC Business Development Officer John Rockwell was part of the team that would bring Sean’s property dream to fruition.
“John and Yvonne were amazing throughout the process,” Sean says. “Since this was my first experience with a commercial property purchase, it was stressful, but they held my hand throughout. John was patient and communicative and by walking me through the SBA 504 process, I gained a deeper understanding of my business and goals, which was really great.”
TMC’s experience makes the difference
John says, “Most of the business owners TMC works with don’t have past experience buying commercial property and we know it can feel overwhelming at times. That’s where TMC’s experience really makes a difference for our clients. It was great to work with Sean throughout this purchase and we’re excited to see Roast n’ Post in its new home.”
In addition to property purchases, SBA 504 loans can be used for to new construction, upgrades to existing buildings, to purchase major equipment and assets, and to convert facilities for improved energy efficiency.
“We’re making a large investment into making this space everything we envision and I just can’t imagine doing that in a leased space,” Sean says. “This grounds us and gives us the physical and creative space to stay nimble at a time when many smaller studios are going fully remote or being consolidated. We’re so glad that we found out about the SBA 504 program and TMC to make this happen.”
A property purchase and much more, thanks to the SBA 504 program
Sean appreciates the pragmatic and financial benefits of real estate ownership, such as having the property as part of the business’s portfolio of assets, but it may be the sense of deepening their connection to their community that resonates the most for him.
He says, “We do a lot of work for independent filmmakers and other creatives here and within the industry and we have a lot of community-based events. This location is perfect for that and we’re excited to be here for the long run.”
We can help you, too. To learn more, contact TMC Financing today.