SBA 504 Loan Sets the Ground for Shelter Co to Build Dream Event Space
TMC Financing, a commercial real estate lender specializing in SBA 504 loans for growing businesses, recently helped Kelsey and Michael Sheofsky, owners of Shelter Co, secure financing to purchase property in Guerneville, California. The acquired property will allow Shelter Co to expand their current offerings while also improving efficiency within their current work flow.
Shelter Co stemmed from Michael and Kelsey’s realization that there was something missing from the event world. They wanted to give people the ability to host events in a location of their choice without having to depend on hotel availability. They wanted to offer the opportunity of letting people think outside the box and create something truly unique. Their solution was Shelter Co, a full-service event production company offering luxury rentals to create an unconventional, beautiful pop up event.
Shelter Co is versatile – they can provide furnishings for an outdoor event or they can take complete control and handle all event details from conception to execution. From custom invitations to grand helicopter landings, Shelter Co brings their clients’ ideas to fruition. They have executed a wide range of events including weddings, corporate events, retreats, and festivals. Shelter Co events are well-designed, thoughtful, and environmentally conscious productions. They have produced successful events for Google, Airbnb, Nike, Levi’s, and Virgin Galactic.
As a veteran of the event industry, Kelsey has always dreamt of owning her own space. “Mike and I love wild, raw spaces,” explains Kelsey. “We’ve been looking for years for our ideal location and finally found it in Guerneville. We are thrilled to have a permanent location and to be a part of the Sonoma community. We chose to secure financing with the 504 loan because of low below market, long-term interest rate.”
At the time of purchase, the property was an abandoned amusement park scattered with a few dilapidated structures. Shelter Co has plans to revitalize the 12 acres of land to an event venue and campground. The site will also be utilized as a staging area for their evolving tenting environments. Additionally, it will be used a storage hub which will reduce overall costs as many of their events are located in close proximity to the site.
“Unconventional properties such as this one often come with less than favorable terms, requiring up to a 40 percent down payment,” explains Anna O’Brien, TMC’s SVP who facilitated the deal. “The 504 loan comes with a 15 percent down payment requirement for single use properties – combined with a long term, below market interest rate.”
“Being that the property is so unique – we knew that getting financing would be hard. We are so grateful for the 504 Program and for the support of TMC Financing. They were constantly going to bat for us to get the deal done. They gave us the support and encouragement we needed throughout the entire process,” explains Kelsey.
TMC looks forward to helping Shelter Co with another 504 loan to cover the construction costs associated with building out the campsites and the storage structures on their acquired property.
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It’s not quite camping weather yet but we are in full prep mode over here. We spend the off season designing new furniture pieces, scrubbing tents, sanding and staining tables, washing rugs, and staring at our warehouse for hours on end wondering how it’s all going to fit when we get our next shipment. #gonnaneedmoreracking #andanotherwarehouse