Capital Access Group (www.capitalaccess.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Kevin Andersen, CEO of NPI Solutions, Inc., to secure $7,309,275 in total project financing through the SBA 504 commercial real estate loan program. The funds were used to purchase a 52,000 square foot industrial office lab space on a 3.8 acre parcel located in Morgan Hill, San Jose, California, an area known for its high technology research and development firms and manufacturing facilities.
Contract manufacturer NPI Solutions, Inc., partners 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. NPI, founded in 2000, has experienced exponential growth, with operations in San Jose as well as a global presence in Asia, where they own two manufacturing facilities in Suzhou, China, and Singapore.
After 16 years of leasing and subleasing space in Silicon Valley, Kevin Andersen and his son Keith, who serves as the Director of Design Engineering for NPI, decided it was time to secure a building of their own to lock in costs and make it possible to manage the maintenance of the building.
“We know where we stand now,” said Keith Andersen, Director of Design Engineering, NPI Solutions, Inc. “We can model what the business looks like in five years, 10 years, and 20 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.”
The low, 10 percent down payment is what attracted the Andersens to the SBA 504 loan program, according to Keith.
“We knew we wanted to keep a sufficient amount of money within the company for operations,” he said. “The 504 loan allows us to amortize the overall costs over time.”
The Andersens also appreciated Capital Access Group’s professional, unbiased service.
“Capital Access Group is about facilitating the loan, but they’re not there just trying to sell you their product,” said Keith. “They’re here to facilitate the loan process.”
“It’s a stressful time, buying a commercial building for the first time, where you don’t know the ins and outs,” said Kevin Anderen, CEO, NPI Solutions, Inc. “Claudia (Cohen) was pleasant and professional, offering unbiased support as we assessed financial institutions.”
“We were so pleased to help the Andersens secure a location for their U.S. expansion,” said Claudia Cohen, Senior Vice President, Capital Access Group. “NPI currently employs 250 people globally, including 160 people in Silicon Valley, and they saw a 50 percent increase in growth as a result of the new facility in 2017. They are expecting an additional 20 percent plus growth in 2018. This is great news for NPI Solutions and for the community.”
To read the press release online, click here.