SBA 504 COMMERCIALACQUISITION LOAN
Wholesale Produce Warehouse Acquisition - Los Angeles, CA
Market - WHOLESALE PRODUCE
$9.4M
PURCHASE PRICE
SERVICES RENDERED & RESULTS
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Business Growth & SBA Financing
- Structured an $8.4M SBA 504 loan package at favorable terms, including a below-market fixed rate, long-term amortization, & a minimal equity injection
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Unique/Hybrid Financial Structuring
- Negotiated a reduction in the purchase price, lowering the borrower’s equity contribution & improving the overall financing structure
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Consulting Strategies
- Facilitated a seismic study to secure lender approval, eliminating a potential deal-stopper
- Secured a contingency extension to complete due diligence while accommodating the seller’s strict 1031 exchange timeline
- Provided precision execution under pressure, coordinating between all parties to resolve challenges & close the deal successfully
GOALS & CHALLENGES
Price Reduction Negotiation: The property’s initial listing price exceeded the borrower’s target budget. A meaningful price reduction had to be secured through careful negotiations while keeping the seller engaged in the transaction.
Seismic Study Approval: Given the property’s size & age, seismic safety compliance was a key lender requirement. Coordinating & securing seismic study approval was essential to meet underwriting conditions & provide both borrower & lender with confidence in the asset’s long-term viability
Extension of Contingency Period: The borrower needed additional time to complete due diligence, while the seller required certainty to protect their own pending 1031 exchange. This created significant pressure to balance both parties’ needs & avoid jeopardizing the transaction.
Strict SBA 504 Guidelines: The SBA 504 loan structure required precise execution between the first mortgage lender, CDC, and borrower. Navigating program requirements while simultaneously accommodating the complex deal terms required diligence & expertise.
24,800 SF
Cold Storage/Distribution Facility/3 Loading Docks
Client Objective & Purpose
Our client, a long-established wholesale produce distributor, sought to acquire a larger, strategically located facility in Los Angeles to expand operations, improve distribution efficiency, and position the company for long-term growth. The acquisition was missioncritical, as the business had outgrown its existing space & needed additional capacity to meet increasing demand from regional grocery & restaurant accounts.
Outcome
The borrower successfully acquired the 24,800 SF produce distribution facility in Los Angeles, gaining a larger platform for growth, efficient distribution, & long-term cost stability. Vanguard Commercial Capital’s efforts not only secured optimal financing but also resolved multiple deal complexities, demonstrating the firm’s commitment to exceeding client expectations & executing transactions with unmatched precision.
Owner-User building for Wholesale Produce Company
Client FeedbackClient Feedback
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SOLFI GROUP
Noel Delivers Results Where Others See Roadblocks
With decades of deep banking relationships & direct access to key decision-makers, he structures tailored loans using common-sense underwriting. Not policy driven, just performance driven, Noel maintains a 95% close ratio by finding creative solutions that others overlook.
