Recently Funded Deal: Packaging Products and Machinery Distributor
Situation: A packaging products and machinery distributor in Suffolk County, NY needed to move from its 22,000 square foot facility to a new location to support current and future growth. With its current lease coming to an end, the company entered into a new lease agreement for a 63,000 square foot facility, with plans to purchase the facility and land at the end of the lease. The company sought financing to support this purchase and for renovations.
- TD Bank referred the business to The 504 Company, and together we provided a total of $5.85 million in financing.
- The SBA 504 portion was provided at a 25-year term, which will run through close to the tail-end of the company's ground lease.
- With the loan, the company added equipment and completed cosmetic improvements and upgrades. Renovations included removal of non-weight bearing walls, improved floors, glasswork, painting, and more.
- The new location provides triple the amount of space than their previous location, with ample room for growth.
- The additional space allows the company to add more offerings to their product line and to warehouse more inventories. In turn, this will help reduce their purchasing costs and improve their ability to contract larger sales.