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 Brian Flynn, CEO of Hybrid-Design/Super7, to secure $3,130,000 in total project financing through the SBA 504 commercial real estate loan program. The funds were used to purchase four condominium units totaling 4,376 square feet of space in an unfinished warehouse located at 777 Florida Street on the border of Potrero Hill and the Mission District in San Francisco.
Hybrid Design, a visual branding and strategy studio, has one mission: to take people on a journey through creative storytelling. Their approach is both logical and experimental, and one they apply to their own business as well.
Based in San Francisco, the company has used logic and experimentation to leverage key investments in the real estate market to propel their growth. Founded in 2003, they purchased their first office space, a live/work loft in the South Park neighborhood in San Francisco’s South of Market (SOMA) district.
“We have always owned our own offices, paying a mortgage instead of rent that is constantly climbing, so that we can afford to stay in the city,” said Brian Flynn, Hybrid Design/Super7, CEO.
Flynn’s next purchase, a condemned building in Jackson Square that he spent 3 years rehabbing, caught the attention of local developers. Flynn sold the building and moved the company to 24th street in SOMA, their current location. The company has grown considerably since then, and Flynn wanted to double the square footage of their 24th Street space.
“We need to double our space now that Super7, our collectibles manufacturing division, has taken off,” said Flynn. “Super7 is growing like crazy.”
The new space gives Hybrid Design and Super7 the room to grow and to take advantage of new opportunities, which they “wouldn’t be able to do without the SBA,” according to Flynn.
“The down payment is the key. If you’re a traditional business and you want to buy commercial real estate, they want 40 to 50 percent down,” said Flynn. “As a growing small business, you’ve got to put all your money into expansion, capital, and employees. Finding 10% to put down to ensure that you have a place to operate your business and that works within your budget are far more valuable and realistic. The rent we’re paying now is about 40 percent of market value on the mortgage versus what it would cost if we tried to rent it.”
“Capital Access was really great in helping us figure out the process and move through it,” said Flynn. “Claudia (Cohen) and her team made it super easy to understand the nuances of how the loan works.”
“It was such a pleasure to help Brian with his SBA 504 loan and to see his businesses flourish,” said Claudia Cohen, Senior Vice President, Capital Access Group. “Hybrid Design and Super 7 are growing by leaps and bounds, and Brian’s strategy—to always own the property they occupy—allows him to invest in the growth of the business, instead of worrying about constant rent increases.”