Press Release (ePRNews.com) - SAN FRANCISCO - Mar 06, 2018 - Capital Access Group, a San Francisco-based commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Elie Antoun, owner of AHK Electronic Sheet Metal, Inc., purchase a 58,510 sq. ft. the industrial building at 900 and 912 Olinder Court, San Jose, CA for $9.3 million. Simultaneously, Antoun and his business partners purchased Tobar Industries, which was already housed in the facility at Olinder Court, through a separate financial transaction.
AHK Electronic Sheet Metal was founded in 1982 and purchased by Antoun in 2016. The company manufactures sheet metal custom products and parts for a variety of leading Silicon Valley manufacturers and innovators. Tobar Industries builds custom products and parts that rely on sheet metal fabrication, precision machining, electro-mechanical, and turnkey assembly. The combined purchase of the manufacturing facility and Tobar Industries will deepen AHK’s manufacturing capacity, further enabling the company to take advantage of opportunities in Silicon Valley.
Antoun, who has more than 20 years of experience in leadership positions in the semiconductor and consumer electronics industries, said that he “really enjoys manufacturing” and that he purchased AHK to acquire another piece of the value chain. Antoun’s first manufacturing acquisition was Etched Media Corporation, a company Antoun acquired in 2010, which creates printed labels, logos, signs, and other customized solutions for the tech industry. According to Antoun, Etched Media is on the “back end…the last stop before the machines get shipped to the customer.” By co-locating AHK Sheet Metal, Tobar Industries, and Etched Media in one space, each company can expand operations, increase sales, and stabilize future facility costs.
For a loan and a property acquisition this big, it would have been difficult to secure financing without SBA support.
AHK Sheet Metal’s expansion takes place in the already booming Silicon Valley, known more for the tech corporations that contribute to the area’s economic growth.
“Few people are aware of the manufacturing opportunities in Silicon Valley,” said Antoun. “We know the industry, and we plan to use our experience and expertise to help businesses who need our services.”
The new facility allows Antoun to move at a faster pace and run his businesses more efficiently.
“You can configure the property according to your own needs without worrying about a whole set of approvals,” said Antoun.
Antoun had previous experience purchasing a property with SBA financing, so he was already familiar with—and a believer in—the program when he decided to buy the new space.
“For a loan and a property acquisition this big, it would have been difficult to secure financing without SBA support,” said Antoun.
Capital Access Group gave Antoun the low down payment financing he needed and securing the loan removed the uncertainty tied to future rent increases.
“From the day I met Claudia Cohen from Capital Access Group, I knew she had the experience and expertise to negotiate the deal for us, and she did,” said Antoun. “The loan gives us certainty. We know how much rent we’re going to pay, we know how much it’s going to cost us from that perspective.”
“I was so excited to work with Elie on the SBA 504 loan process. I had spoken to him a few years back when he first started considering a purchase. Being a part of this successful purchase with him was extremely gratifying,” said Claudia Cohen, SVP, Capital Access Group. “The 504 loan program is an essential element of his strategy to take advantage of manufacturing opportunities in Silicon Valley. It gives him more control and flexibility over the facility so he can focus growing his business.”
About Capital Access Group: Capital Access Group is a leading statewide Certified Development Company based in San Francisco, authorized by the U.S. Small Business Administration to provide long-term, fixed-rate financing through the SBA 504 loan program, which offers 90% financing to business owners for the purchase, renovation, or construction of commercial real estate for their growing businesses. Founded in 1981, Capital Access Group has helped thousands of entrepreneurs grow their businesses and realize their dreams of owning their own buildings. Currently, the SBA 504 interest rate is 4.94%, fully amortized and fixed for 20 years. For more information, please visit www.capitalaccess.com.
Capital Access Group