SAN FRANCISCO—As GlobeSt.com previously reported, the owners ofDRAKE Gastro Lounge recently acquired a building located in theSouth of Market area of San Francisco with a 20-year fixed-rate,SBA 504 loan for $4.3 million. According to TMC Financing, DRAKEwas able to recoup more than $2,000 a month by purchasing theirlocation, as well as fixing their operating expenses against futurelease rate inflation. In an update to that storyBarbara Morrison, president and CEO at TMC Financing, tells GlobeSt.com that SanFrancisco's current leasing market leads to alternativeoptions.
Barbara Morrison, president and CEO at TMCFinancing, says that “While many conventional lenders shy away fromfinancing restaurants, the SBA 504 program is able to provide low,fixed rate financing with as little as 10% down. This makesfinancing through the SBA a great strategy for restaurateurslooking to retain working capital.”
Morrison tells GlobeSt.com that “The current leasing market forSan Francisco's commercial real estate has increased at a rapidpace. Based on recent CoStar data, over the last threeyears leasing prices in San Francisco have increased by over75%. Looking into the near future, we anticipate the marketto become more competitive, and prices to continue to rise.”
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