Entrepreneurs Clean Up with 504 Funds to Launch The Laundry in SF’s Mission District

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 entrepreneurs Gianmatteo Costanza and Andrew Swerdlow to secure project financing to purchase and rehabilitate a disused 8,950-square-foot building at 3359 26th Street, San Francisco, California, in the heart of the City’s Mission district. The building, a former industrial laundry, was the inspiration for Costanza and Swerdlow’s business, The Laundry, a flexible art space for people “who are concerned with creating and changing the world in the widest sense,” according to Costanza.

“We saw this industrial laundry that had been built by French immigrants in the 1930s as an opportunity to form a special place for creators to build and share their work,” said Gianmatteo Costanza, Co-owner, The Laundry. “We wanted to maintain the heritage and unique architecture of the original building, but we also wanted to invest in remodeling the building to bring it up to code, make it fully ADA accessible and support our future business needs.”

The Laundry features a café with a local coffee roaster and an art gallery that is reserved for community members during the day and doubles as an event venue in the evening for workshops, lectures, immersive theatre, and events that combine technology and art.

“We knew we needed a special lender who would allow us to develop a different kind of business model — one with many working pieces,” said Costanza. “It required imagination from the lender, so we were very happy that Capital Access was open to listening to our out-of-the-box approach.”

“The SBA 504 loan was the perfect solution for Gianmatteo and Andrew,” said Cara Rudy, Vice President, Capital Access Group. “The 504 program’s low, 10 percent down payment allowed them to preserve working capital to invest in growing the business. The long-term, fixed interest rate gives them the reassurance they need to plan for the future.”

“The SBA 504 loan is a long-term financial deal that allows entrepreneurs to plan and grow with confidence and not be subjected to the whims of the market,” said Costanza. “We own the space and control it fully, and now we are hiring people and becoming a good employer.”

“I have only praise for Capital Access Group,” said Costanza. “They are really good partners. Our business plan anticipated having all of these disparate elements coming together, and we would not have been able to implement the full vision without this kind of backing.”

Hoteliers Access $8 Million in Financing through the SBA 504 Loan Program to Purchase Award-Winning Monterey Peninsula Inn, Located on the Coast in Pacific Grove, CA

Capital Access Group (www.capitalaccess.com), a commercial real estate lender and hotel financing expert specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Kimberly and Michael Grech purchase the Monterey Peninsula Inn, a 38-room, 13,124 square foot, independent motel located at 1101 Lighthouse Avenue, in Pacific Grove, CA. Kimberly and Michael formerly owned and operated the Sunset Inn, a 21-room motel in Pacific Grove.

“The Sunset Inn is a wonderful place, but we always wanted a larger property,” said Michael Grech, Co-owner, Monterey Peninsula Inn. “This is a great opportunity for us because it gives us what we wanted, a much larger property.”

Built in 1946, the Monterey Peninsula Inn is an award-winning motel on nearly 2 acres of land, located two blocks from the ocean and in the vicinity of Cannery Row, the Monterey Bay Aquarium, and the entrance of 17-Mile Drive Pebble Beach.

“The new property is going to be great,” said Kimberly Grech, Co-owner, Monterey Peninsula Inn. “Michael and I have plans to tweak the property to make it a phenomenal retreat for people coming to the Coast, including adding two new units to the property, building a trellis, adding a water fountain, and improving the landscaping.”

Kimberly and Michael wanted to take advantage of the SBA 504 loan program because of the low, fixed interest rate, but they were amazed by the quick turnaround and dedication of the Capital Access Group team.

“We had a very short, 45-day loan contingency, and we had to put up a large amount of non-refundable money,” said Kimberly. “Claudia (Cohen) and her team worked day and night to get the loan fully approval within the 45-day timeframe. Now, we have a 20-year rate on the entire project which was exactly what we wanted,” said Kimberly. Claudia and her team were phenomenal.”

“We really enjoyed working with Michael and Kimberly and helping them achieve their goal of owning a larger property in Pacific Grove,” said Claudia Cohen, SVP, Capital Access Group. “They now have the property they wanted, financed with a long-term, fixed rate loan so they don’t have to worry about rising interest rates and can focus on building the property of their dreams.”

“Capital Access Group has financed multiple hotel projects throughout Northern California in recent years,” said Cohen. “Our team of experts knows the ins and outs of the hotel industry, and we can help hoteliers navigate the SBA loan approval process and meet tight deadlines, just like we did for Kim and Michael.”