Southwest Barricades: TMC Financing and an SBA 504 Loan Help Secure the Ideal Property

Since launching Southwest Barricades in 2006, owner John Zyadet’s business has grown to include several hundred employees – and now, with the help of TMC Financing and the SBA 504 loan program, he can house his expanding operations in a single, 45,000+ square foot location that he owns. Here’s why he chose TMC and the SBA 504 loan program to achieve his goal.

Starting a business with unlimited growth potential

John got the idea for Southwest Barricades when he learned traffic-control design, logistics and project management at one of his first jobs. Today, his Phoenix, Arizona-based company is a leader in traffic-control planning and barricade provision, as well as specialized services like saw cutting and core drilling. The business is driven by clients in utilities, special-events management, and construction contracting.

Its growth presented logistical challenges, though – specifically, finding an existing commercial property in which John could consolidate current operations, facilitate growth, and offer proximity to his clients’ projects.

“We had several sites prior to our new location,” John says, “but we continuously outgrew them, so we had operations and equipment spread out over different locations. We spent years looking for the right property to purchase.”

The SBA 504 program is the right choice for commercial-property purchases

“I’d used the SBA 504 program to buy commercial property before,” John explains, “so it was an easy decision to go with the program again. The low down-payment is critical for large purchases and the loan terms make it easier to plan for the long term.” For this property, that meant a 10% down payment on a $9.5 million deal, with a fixed-rate loan and a 25-year term. By comparison, conventional commercial loans typically require 25-30% or more of a project’s cost for the down payment, with much shorter loan amortizations.

This time around, though, his commercial-bank representative recommended partnering with TMC Financing on his SBA 504 deal.

TMC Financing’s experience makes the SBA 504 process easier

John worked with TMC Financing Business Development Officer Chris Bane and, he says, this time around it was a much smoother loan process than his past experience. “I’m sure it was better, in part, because I knew what to expect this time, but I really think the TMC team made the difference,” John says. “We’d finally found the right location for the business and our financing team at TMC and our bank made the deal easy. Now, we own the commercial property we need with great loan terms. I’m so glad that this worked out!”

Prior to John’s ownership of the property, there were several tenants in place. As their leases expire, Southwest Barricades is taking over the space and John anticipates that eventually, his business will occupy 90% of the available square footage, with one tenant continuing in a longer-term lease.

Owning the perfect building for his growing business

John sums up his experience by saying, “As business owners, when you’re buying commercial property, you have to be ready with things like your tax returns and financials in place and up-to-date, but it’s just as important to have the right lenders working with you. TMC Financing was great and I’m certain that was a big factor in why this purchase went so smoothly.”