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Recently Funded Deal: Food Distributor

Recently Funded Deal: Food Distributor

The 504 Company finances co-op shares to help a long-time distributor in Hunt's Point Market expand

 

 

 

Situation

  • A distributor of fresh and dried fruits as well as spices and nuts in operation since 1937 had the opportunity to purchase three units adjacent to its existing space in the renowned Hunts Point Market (Bronx, NY), where it has operated for more than 60 years.  

  • However, businesses operating in the market own co-op shares which can be challenging to finance due to collateral issues.

Solution:

  • A partner bank referred the owner to The 504 Company and our local loan officer recognized the fit for a 504 loan.

  • Our legal counsel quickly recognized and addressed any issues with the Hunts Point Market co-op shares, and we provided $1.2 million in financing to complement a loan for $864,000 from the partner bank.

Impact:

  • Total full time employees are expected to increase from 32 to 42 in a county with significantly high unemployment rates.

Have a deal to discuss? Contact a loan officer today.

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