What were some key factors in your decision to own the property for your business and/or in making that happen?
Phinance Commercial Capital
Our experience purchasing our commercial real estate building was the best decision my husband (also business partner) and I have made for our business.
We had been leasing an office in midtown from a friend, a situation that was working for us until we found out he was considering moving to a location that would have been too far for us and our clients. We were lucky in quickly finding a building we liked nearby; it needed only some cosmetic changes, had ample parking, and was within our price range.
The financing process went smoothly, as we use our own finance brokerage firm to take care of it. It took about a month or two to remodel and furnish the building — our building! We opened our doors in February of this year and within weeks leased three offices that we were not using. We now own our building and have plenty space to grow our team. We also generate revenue from the additional offices. It feels great to arrive at this beautiful building every day and know it is ours.
Mitzi Castillo is co-owner, with husband Sergio Martinez, of Phinance. The company consists of dedicated business professionals with 20-plus years of experience in the financial, business development and marketing arena working with more than 100 commercial lenders, both traditional and alternative. Striving to find the one who is willing and able to provide the capital each of its clients’ business needs, Phinance is committed in this quest.
Senior Vice President
Sector: Real Estate
Many of my small business clients find there comes a time when their business is established enough that they are able to make long-term plans for their real estate. A few of the initial questions are “Can I qualify for a loan?” and “How does my lease cost compare to the cost of a purchase?” With low interest rates and attractive loans available for “owner occupied” buildings, the decision gets easier.
Lease rates are escalating and buildings can still be purchased below the cost of replacement, allowing their equity to grow. Some buyers are making it part of their retirement plan. When they retire they plan to lease out the building for additional income.
Other factors my clients are considering when deciding to buy include the peace of mind in knowing their long-term fixed expenses. They eliminate the risk of fluctuating lease rates and the cost of a move should their landlord choose not to renew their lease. And a big intangible benefit is the pride of ownership and the ability to control their own destiny.
Laurel Lewis focuses on the representation of both landlords and tenants through the sale and leasing of multi-tenant office properties and owner-user buildings throughout Metropolitan Phoenix. Specializing in real estate-related marketing and strategic planning, site acquisition or disposition, renewal and relocation studies, financial analysis, negotiation and development of transaction terms and marketplace analysis, Lewis has closed more than $61 million of commercial real estate transactions since 1992.