Saving by Buying, Not Leasing

SAN FRANCISCO—The owners of DRAKE Gastro Lounge recently acquired a building located in the South of Market area of San Francisco with a 20-year fixed-rate, SBA 504 loan for $4.3 million. According to TMC Financing, DRAKE was able to recoup more than $2,000 a month by purchasing their location, as well as fixing their operating expenses against future lease rate inflation.

The two-story restaurant, bar, and lounge occupies a 9,900 square foot building located at 508 Fourth Street in San Francisco. The financing enabled the minority owned and operated business to hire new employees and retain working capital through a low down-payment, says TMC.