Commercial Real Estate Financing Food Business Gets Healthy
Author: Valerie Mellema
Date posted: 01.28.23

A married couple had been operating a Midwestern health food business for about 15 years, with 10 of those years in the same convenient location. The business did great and thanks to the magic of the Internet, they were able to sell products both in the local area and internationally. A few long-term staff were involved and the business grew every year. The location of the shop was a few miles outside of a big city in a suburb that saw a lot of traffic. Things were looking good.

The Chance to Own Their Property

 

The location of the business has tons of professional families living nearby. It had experienced a great deal of growth in the last 10 years. The owners were happy with the location and wanted to stick around. When their landlord came to them asking if they would like to purchase the office and warehouse, they had some thinking to do.

 

The owners knew there would be challenges associated with moving forward but wanted to if the opportunity was there. They had a limited amount of savings to put down for the property and they’d had trouble getting standard business loans in the past.

 

What Does It Take to Grow?

 

It made total sense to move forward with purchasing the building so they controlled the entire facility, but the challenges remained. After talking to the current landlord about pricing, the owners were told that the price would run about $1,250,000. This was reasonable but it would also mean doing some work to make sure things came together.

Which Financing Makes the Most Sense?

 

After deciding they wanted to try to make this work, the next step was to find out what options were available. Looking into alternative financing to the traditional business loan gave them insight into several financing options. Some were not suited for what they needed, but several had some merits to consider.

 

The owners sat down with a financial expert to ruminate about which opportunity might be best for them. In the end, they decided that they’d like to move forward with commercial real estate financing. It perfectly fit their needs and came with perks that were not available with other types of financing.

 

What Makes Commercial Real Estate Financing the Right Choice

 

One of the great things about the commercial real estate loan was the chance to have a term of 10, 20, or 30 years. In addition, the amount of the loan could easily reach what they needed and far beyond. Interest rates were low and funding could be available in a matter of a few months.

 

The long term length and low interest rate made a commercial real estate loan affordable for the couple. They also had the option to leverage up to 80% of the loan and would make regular monthly payments. After making the decision, the only choice was to move forward.

Looking Toward the Future

 

With the help of alternative lending through commercial real estate financing, this health food business was able to own its own property in full. It’s made them proud owners who are sure the business will continue to grow and thrive.

 

Now that the facility is their own, they’re looking toward the future. Renovations and updates seem like a great way to keep things successful for the brand. Of course, none of that would be possible without the help of alternative lending. For now, life is looking good for these Midwestern owners who focus on helping people feel their best.

About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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