Aging Like Fine Wine

Steady Business Catches Up

Ever since its inception, the wine company has maintained steady growth by leveraging a property lease in an area renowned for commercial vineyards. It has consistently enhanced club membership and wine sales, fully embodying the concept of Aging Like Fine Wine.

However, with the rise in sales volume, the challenge of meeting the surge in orders progressively intensified, clearly illustrating the acceleration of growth. Recognizing the necessity for evolution, the owner identified a crucial need for transformation. The initial step entailed acquiring the leased space, thus establishing the groundwork for the upcoming expansion of the tasting room and winery. This expansion will also introduce a new vineyard—a true embodiment of the concept of Aging Like Fine Wine.


What Does It Take to Move Forward?

Once the idea took hold, the owner couldn’t shake it. The wine company had unmistakably reached a pivotal moment, requiring capital to propel it to the next level. Yet, before pinpointing the optimal financing avenue, assessing the required funds was paramount.

Following a discussion with a financial advisor, the figures were meticulously calculated. The envisioned alterations mandated a $1,000,000 loan, facilitating property and land acquisition for the winery and vineyards.

Aging Like Fine Wine

Selecting Commercial Real Estate Financing

Several factors influenced the selection of the suitable financing option. Firstly, the winery stood out as relatively young compared to most others in the area, posing challenges for emerging wine companies seeking appropriate financing.


Additionally, the region’s drought conditions had made underwriting requirements more stringent than usual, further complicating the decision-making process. After conducting extensive research and receiving assistance from peers, the owner ultimately opted to apply for commercial real estate financing.


The Top Benefits of Commercial Real Estate Financing

Commercial real estate loans specialize in purchasing or refinancing real estate, offering a remarkable potential loan-to-value ratio and the flexibility of being structured as either an SBA loan or a bank term loan. These loans are also cost-effective due to their low interest rates and extended term lengths.


Given that an immediate progression wasn’t a pressing concern, the timeline of up to 90 days for securing funding posed no problem. Additionally, the inclusion of monthly payments aligned perfectly with the owner’s preferences. With interest rates starting as low as 6%, this option appeared to be the most advantageous choice.

What Happened in the Aftermath

After securing the loan, the wine company purchased the property they had been leasing, which included a vineyard, tasting room, and winery. The tasting room played a vital role in strengthening customer relationships and provided an ideal venue for events. With the vineyard, they ramped up wine production to sell directly to consumers.

By taking the bold step of choosing commercial real estate financing, the wine company experienced significant improvements. It can now effortlessly accommodate larger crowds and has the resources to build even stronger customer loyalty.

Aging Like Fine Wine

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