SBA 504 program helps Steadfast Construction buy a new warehouse space without “breaking the bank”
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 Marcus Alvarez and Eric Pestana, the owners of Steadfast Construction, Inc. to purchase a 2,704 square foot warehouse located at 425 Boulder Court, Suite 700, Pleasanton, California. Steadfast currently has 15 employees and expects to double in size within the next two years to a total of 30 employees.
Founded in 2012, Steadfast Construction is a full-service water damage restoration company that provides water damage restoration and mold and sewage remediation services combined with rebuilding services so projects can be completed without any downtime. The company caters to the homebuilding industry and homeownership associations, serving clients along the Route 680 corridor in Pleasanton.
“We’ve always kept our business lean and mean,” said Marcus Alvarez, President, Steadfast Construction, Inc. “We didn’t lease a warehouse until we absolutely needed it, but as soon as we got into the warehouse, we realized we needed even more space, so we started looking around.”
“Many of the spaces we looked at were too big, but then our broker showed us this space, and it was immaculate,” said Alvarez. “It’s the right size, and it’s in the right location — literally right around the corner from our current warehouse.”
There’s “no doubt” that owning a building helps Marcus and Eric feel more secure about the future of their business, according to Alvarez. “My first employer in restoration said, ‘Marcus if you ever go into business, the first thing you do is buy a building and lease it back to the company.’ It was good advice that I’ve been wanting to follow.”
“What the 504 loan enabled us to do was to be able to put ten percent down on a warehouse that wasn’t going to break the bank,” said Alvarez. “The 10 percent down payment was a huge factor for us.”
“It was a pleasure to help Marcus and Eric buy a warehouse and experience the security and stability that building ownership provides,” said Cara Rudy, Vice President, Capital Access Group. “For a low, ten percent down payment, Steadfast now owns an ideal new building in a terrific location that will accommodate the company’s growth plans, which includes adding up to 15 new jobs in the near future.”
“Cara (Rudy) from Capital Access Group was great to work with,” said Alvarez. “She was very nurturing and easy to get along with. It was stressful at times, but Cara was a calming force. I would work with her again.”