TMC Funding Helped TownePlace Suites Natomas Owners Navigate Challenging Environment to Fund New 119-Room Hotel Near Sacramento International Airport
There were a lot of headwinds when funding, but TMC and Bruce helped us navigate those waters. It’s like having a harbor master: they send a pilot boat and guide you to the port. This is how I would describe TMC.
SACRAMENTO, Calif. (PRWEB)
06 October 2021
TMC financing (TMC), a leading national lender of SBA 504 commercial real estate loans for nearly 40 years, provided Hospitality Natomas, LLC with $ 22 million SBA 504 financing to build the 119-room TownePlace Suites by Marriott Sacramento Airport Natomas in the Natomas Community of Sacramento, California. The hotel is conveniently located near two major freeways and close to Discovery Park, the Sacramento Zoo, the Golden 1 Center and downtown Sacramento. Natomas area is experiencing significant growth after lifting of a construction moratorium following vital repairs to the dike system amid concerns about dike failures after Hurricane Katrina.
Funding for the hospitality industry is tricky, but funding for TownePlace Suites by Marriott Sacramento was a “doozy” according to Bruce Whitaker, senior vice president, TMC Funding.
“The project took us five years to get started,” said Cosme Fagundo, co-owner of TownePlace Natomas. “Anything that could go wrong has gone wrong. We had rights issues. We had card registration issues. It was a comedy of errors with situations that weren’t in our control and then we opened up in the middle of an absolute nightmare with the pandemic!
“There was a lot of headwinds in the funding, but TMC and Bruce helped us navigate those waters,” he said. “It’s like having a harbor master: they send a pilot boat and guide you to the harbor. This is how I would describe TMC. They really helped guide without hitting any rocks or having any issues.
SBA 504 loans allow business owners to purchase commercial real estate and other fixed assets at long-term fixed interest rates below the market. Down payments as low as 10% mean businesses can keep their cash in the business instead of being stuck in a large down payment.
“With the 504 program, you have to put in less equity because most commercial banks want to have a good amount of amortization,” Fagundo said. “I couldn’t have done it without the 504 program.”
TownePlace Natomas’ $ 22 million SBA 504 loan included $ 5.5 million for on-site power generation under the SBA’s energy efficiency financing program, which allows companies to qualify for additional SBA 504 funding when they meet energy efficiency requirements. Under the program, the SBA 504 portion of the financing package is increased to a maximum of $ 5.5 million. There is no limit on the amount of the first mortgage, so there is no limit on the total cost of the project. TownePlace Natomas met the requirement by installing solar panels on the project.
“The energy efficiency loan waives the requirements so that you can access multiple SBA loans,” Fagundo said. “That’s why hospitality turned to the 504, because you might have a lot of money on your balance sheet, but you don’t have a lot of money, do you, for a small operator. “
Fagundo and another co-owner, Michelle Della Penna, said they appreciate the positive impact of the 504 program on minority business owners.
“The SBA 504 allows for great upward mobility, especially among minorities,” said Fagundo. “I am a first generation Cuban. My parents worked really hard, so I got a good head start, but I couldn’t have done this project without the 504 program.
“My dad came here from Argentina when he was in his twenties, and he really worked hard and was able to provide these inherited properties and assets,” said Della Penna. “It’s exciting to watch something that you’ve built from the ground up. It’s been a really good experience.
“It was a privilege to help Cosme, Michelle and Alicia access the capital they needed to build TownePlace Natomas and secure an additional 504 funds based on their commitment to energy efficiency,” said Whitaker. “At TMC, we are committed to improving the process for our customers, even when we are in the midst of a global pandemic! We wish TownePlace Natomas good luck. ”
Let’s celebrate 40 years of activity! TMC Financing is a 501 (c) 4 non-profit organization whose mission is to promote economic development and job creation for small businesses in California, Nevada and Arizona. Since its founding in 1981, TMC has secured over $ 10 billion in SBA 504 commercial real estate financing for 6,000 small businesses. Thanks to the funding, these small businesses have created more than 60,000 jobs. Business owners in Arizona, California, or Nevada can confirm that they qualify for an SBA 504 loan by visiting TMC’s financing website at tmcfinancement.com.
Share the article on social media or by email: