Litigating For Success
Commercial Real Estate Financing Litigating For Success
Author: Valerie Mellema
Date posted: 11.09.22

Problems with a business aren’t the only reason that financing is sought out. This case study about a law firm on the east coast is a great example of that. Sometimes success leads to the need for financing. This law firm was a fixture of the community and had been growing fast with expert litigators and staff. Growth is always a good thing but it can lead to the need to make changes. This is especially the case when a company isn’t ready for what’s coming next.

Expansive Growth Demands Expansion

A growing law firm might easily become enamored by the advantages, potentially losing sight of practical considerations. However, the business experienced a constant influx of new workers and clients. The owners only acknowledged the insufficiency of the current office space when congestion became palpable.

Undeterred by the notion of slowing down, the owners promptly embraced the necessity for action. They embarked on a mission to unearth viable solutions and, with a sense of urgency, set to work promptly to effectively address the situation.

 

The Expenses of Future Expansion

 

This expansion wasn’t a minor endeavor. Consensus dictated that opting for a larger space than currently required was a wiser choice than risking constraints with inadequate room. Considering the firm’s ongoing growth and increasing influence, the necessity for additional space down the road became evident.

Numerous buildings were deemed suitable for the law firm’s needs, encompassing a range of prices. However, the prevailing cost for a suitable space averaged around $5,000,000. Financing a portion of this sum was inevitable, complemented by the owners’ infusion of their own funds.

Litigating For Success

Choosing the Appropriate Loan for a Law Firm

 

Being a thriving law firm, numerous avenues lay open for this undertaking. While a conventional business loan presented the simplest route, embarking without proper research seemed imprudent. The owners engaged experts to explore potential alternatives that could align with their needs.

Among the array of choices, commercial real estate financing stood out as a prominent option. The deliberations included examining factors ranging from SBA loans to alternative lending before taking any concrete steps. Eventually, the decision narrowed down to two possibilities, and commercial real estate financing emerged as the preferred and optimal choice.

 

Exploring the Advantages of Commercial Real Estate Financing

Numerous factors contributed to the ultimate choice of commercial real estate financing. Foremost, this financing type is specifically tailored for property acquisition, whether it’s an existing building or one under construction. Given that the law firm identified an ideal building to meet its requirements, the financing would be employed for the former intention.

Moreover, the loan’s security would be tied to the purchased property, consequently resulting in a diminished interest rate owing to reduced risk. Furthermore, the extended repayment duration of the loan ensures the absence of hefty monthly payments. This combination of lower interest and manageable repayment structure not only eases the financial burden on the firm but also enhances its long-term stability and growth potential.

In essence, commercial real estate financing emerges as an astute choice that aligns seamlessly with the law firm’s expansion goals. By securing a robust foundation through strategic financing decisions, the firm positions itself for sustained success in a competitive legal landscape. The financial acumen exhibited in this decision serves as a testament to the firm’s forward-thinking approach and commitment to securing a prosperous future.

A Successful Expansion

After obtaining commercial real estate financing, the law firm quickly implemented significant changes. The new building not only met the present needs but also exceeded them for future growth. Once the building underwent extensive renovations, the entire team smoothly transitioned into the updated workspace, recommencing their focused endeavors.

At present, operations showcase improved efficiency, benefiting from the surplus space accommodating attorneys, staff, and clients. The firm maintains its previous level of success, and an encouraging trajectory is unfolding, ready to offer a promising future for all stakeholders involved. As the firm continues to expand its influence and client base, the decision to secure commercial real estate financing proves to be a pivotal step toward sustainable growth and prosperity.

With a solid foundation in place, the law firm stands poised to navigate the dynamic challenges of the legal industry while providing an optimal environment for its team and clients alike. The synergy between effective financing, strategic planning, and diligent execution exemplifies how proactive measures can lead to enduring triumph in the realm of commercial real estate.

Litigating For Success
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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