âThe small down payment on the 504 loan put property within easy reach. Being your own owner is the best. “
SAN FRANCISCO (PRWEB)
December 09, 2021
California isn’t just a place to live, it’s a way of life. No one knows this better than Nick Hoppe, founder of Ocean Beach Sportswear. Operating his business since 2013 from San Francisco and Richmond, he has helped hundreds of organizations embody their brand spirit with quality, custom-printed clothing.
The company also serves top retail customers including Only in San Francisco at Pier 39, District MARKET at San Francisco International Airport, Welcome to Las Vegas and Forever 21 stores. They manufacture designer clothing for iconic San Francisco companies such as Blazing Saddles.
In November 2017, Ocean Beach Sportswear drew a lot of attention in the local business press for its big moves. “We are in the hardest part,” said Vice President Brett Hoppe, son of Nick Hoppe. What was the challenge? Go from a small business to a medium across the Golden State. Scaling can be difficult, but TMC Financing was here to help.
Starting with a single retail store, Ocean Beach Sportswear now has 30 locations across California and a plethora of pop-up retail locations that customers can visit from October through January. However, the lack of space turned out to be a significant obstacle.
With Ocean Beach growing by leaps and bounds and Hoppe’s son Brett entering the business, more warehouse space was imperative. Brett Hoppe wanted to integrate his wholesale business into the Ocean Beach portfolio and stop paying an outrageous dollar per square foot for 20,000 square feet in Richmond.
Collaboration was the best decision for both parties – now they needed funding to complete an acquisition.
Nick Hoppe heard about TMC Financing and the SBA 504 loan program through his merchant bank, Bank of America. They suggested that he contact Bruce Whitaker of TMC Financing. Bruce is the Senior Vice President of Business Development for TMC Financing and one of South Bay’s top 504 lenders.
Nick Hoppe, owner of Ocean Beach Sportswear, said: âIt was really a pleasure working with Bruce,â recalls Nick Hoppe. âWe were a great team, the two of us. “
For his part, Whitaker praised Ocean Beach. âTheir operation is awesome, and they’re growing like crazy,â he says. âI was convinced that the SBA 504 loan program was the right vehicle to meet their growth goals earlier. “
SBA 504 Loan Program Helped Ocean Beach Find A Space It Won’t Pass
With Whitaker’s help, Hoppe used the SBA 504 loan program to purchase nearly 70,000 square feet of space in Fairfield. A small down payment of 10% and a fixed interest rate for 25 years made the $ 5,750,000 transaction very attractive. Within weeks, the deal was finalized.
With the SBA 504 loan program, business owners can purchase commercial real estate and other fixed assets at long-term fixed interest rates that are lower than the market. The loans are fully amortized over 25 years and have no lump sum payments. Down payments are as low as 10 percent, and there is no limit to the total cost of the project.
âBuying property for the business is something I’ve always wanted to do,â Hoppe tells us. âIt’s not easy, it takes a lot of money to do it and I prefer to put money back in the business. The small down payment on the 504 loan put the property within easy reach.
âIf I could give TMC more than five stars, I would. They were so knowledgeable, so thorough and so affordable. They answered all of our questions immediately.
TMC Financing Can Help Your Business Succeed With An SBA 504 Loan
What does Hoppe think about being his own owner? “Delicious!” he said with a smile. âBeing your own owner is the best. I highly recommend it. You have to maintain the buildings and all that, but it’s a small price to pay so that you don’t have to make leases.
Ocean Beach is looking forward to a busy holiday season with its much more cost effective approach to stock storage. It’s time to roll out the annual pop-up store strategy, opening 20 stores in just 25 days. Ocean Beach clothing will be available throughout California and Seattle.
With no additional collateral required and no “ancillary costs” such as closing costs eligible for financing, the SBA 504 is a flexible option for small and medium-sized businesses. Almost all for-profit businesses are qualified.
About TMC financing
Founded in 1981, TMC Financing is the leading national provider of SBA 504 financing, which enables small business owners to finance or refinance commercial real estate and other fixed assets with long-term fixed interest rates below the market. . SBA 504 loans can be used to finance the full cost of the project, which may include the purchase price, construction / renovations, equipment, incidentals, and closing costs.
TMC Financing has secured financing for projects valued at over $ 10 billion in Arizona, California and Nevada. More than 6,000 businesses have benefited from this funding, resulting in the creation of around 60,000 jobs.
Contact us to see if you qualify.
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