Capital Access was thrilled to help Kevin Andersen, CEO of NPI Solutions, Inc., secure $7.3 million in financing to purchase a 52,000 sq. ft. industrial office lab space on a 3.8 acre parcel in San Jose, CA. NPI contracts with industrial, technology, medical, and science businesses to design their next-generation products from concept, to prototype, to final assembly and test, to life-end support.
Founded in 2000, NPI has experienced exponential growth, with operations in California, China, and Singapore. After 16 years of leasing and subleasing space in Silicon Valley, however, Kevin and his son Keith, who serves as the Director of Design Engineering for NPI, decided it was time to buy a building of their own.
The Andersens were attracted to the 504 loan’s low, 10 percent down payment, so they could “keep a sufficient amount of money within the company for operations,” according to Keith. The 504 loan also allows the company to lock in costs and make it possible to manage the maintenance of the building.
“We know where we stand now,” said Keith. “We can model what the business looks like in five years, ten years, and twenty years, because we are able to fix the costs and understand them more specifically. We can also manage the maintenance of the building without landlord controls.”Read More