SBA 504 hotel restoration financing helps historic Sonora Inn
SBA 504 loan used to purchase two properties
TMC Financing provides $2.85 million in SBA 504 financing to historic hotel
TMC Financing today announced that the historic Sonora Inn and the neighboring Rodeway Inn have been purchased with one loan with a 20-year fixed-rate, SBA 504 loan for $2.85 million. Located on two parcels at 160 South Washington Street and 128 South Green Street in Sonora, California, the two hotel buildings total 33,017 square feet. The financing will allow Sonora Inn and Rodeway Inn owners to purchase the hotels they have been managing since 2012, and have already invested in major renovations over the past two years.
“Sonora Inn was ready for a change,” said Jim Azevedo, Senior Vice President at TMC Financing, based in the Sacramento office. Jim Azevedo worked with the buyers of Sonora Inn to provide financing via the SBA 504 hotel loan program. “The owner, Jay Desai, had the experience and expertise to revitalize the property and restore its historic integrity. We were thrilled to help him with great financing to make this project a reality. Now he’s the owner of both hotels and we couldn’t be happier.” said Azevedo.
The lender on the project was arranged by Kline Commercial Finance in Santa Rosa, CA and the real estate broker on the project was Howard Matthews & Associates in Discovery Bay, CA.
Sonora Inn operates in the historic downtown area of Sonora, CA. Originally opened as Hotel Victoria in 1896, the hotel is one of the oldest hotels in California outside of San Francisco. Current owner and operator, Jay Desai has owned and managed hotel properties since 1997. In 2012 Desai began managing Sonora Inn and has been completely restoring and remodeling the hotels since 2012.
About the SBA 504 Program
SBA 504 financing offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital which can be used to further grow the business and create new jobs. The February SBA 504 interest rate is 5.30% fully fixed for 20 years.
TMC Financing provides Small Business Administration (SBA) 504 real estate financing and is the leading Certified Development Company (CDC) in Northern California and Southern Nevada. During the past 30 years, TMC has provided over $7.5 billion in SBA 504 financing for more than 4,500 businesses. This financing has resulted in the creation of over 33,000 jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade.