Spa Retailer Obtains Third SBA 504 Loan to Purchase an Additional Location for $3.2 Million
TMC Financing today announced that Paradise Valley Spas has purchased an additional Bay Area retail location with a 20-year fixed-rate, SBA 504 loan for $3.2 million. The project features a 17,300 square foot building located at 1872 Rollins Road in Burlingame. The financing enabled Paradise Valley Spas to stabilize occupancy costs and maintain working capital with a low down payment of only 10%.
David Griffis, Senior Vice President of Business Development at TMC Financing, worked with the owners of Paradise Valley Spas to provide financing through the SBA 504 commercial real estate loan program. TMC Financing partnered with Bank of America in San Francisco to finance the building acquisition.
“Stabilizing operating costs is one of the reasons Paradise Valley Spas has been able to grow and prosper,” says David Griffis of TMC. “Two of the largest costs for small businesses are rent and labor. In San Francisco, office rents have increased 80% in the past two years. I’ve seen businesses forced to close their doors when their lease ends during a market upswing and their landlord triples their rent. Ownership is the best way a small business can insulate itself.”
“As a retail establishment with multiple locations throughout the Bay Area for 29 years, we have established a great amount of goodwill and market presence,” said Bradley Cox, President of Paradise Valley Spas.
“By utilizing the SBA 504 program, we have been able to insure that longevity into the future since we are not subject to escalating rents or unreasonable rental terms. To date, we have purchased three locations using TMC Financing and the SBA 504 program, and will continue to do so. The people at TMC have been very helpful, knowledgeable, professional, and helped us navigate the SBA 504 loan program. TMC is the perfect liaison between us, our lender, and the SBA 504 program; I wouldn’t even consider using someone other than TMC.”
Paradise Valley Spas is a spa and hot tub retailer with eight locations across seven Bay Area counties. Paradise Valley Spas invites customers to bring their swim suits to test out the selection of Sundance and Jacuzzi brand spas. After purchase, Paradise Valley Spas also installs and maintains the spas and hot tubs. Since the business opened nearly 30 years ago, Paradise Valley Spas has installed over 45,000 spas and hot tubs throughout the Bay Area.