Few things are more iconic in America than a diner. This New Jersey diner doubles as a catering business and was passed down through family to the current owner. While the restaurant serves the local community daily, the catering side of the business plays host to a wide range of special events – from corporate and company events to weddings, birthday parties, and more.
Along with the physical diner, the long-standing business owns multiple properties, including the catering hall and a three-unit multifamily investment property. It’s the financing of these properties that brought the client to Apex Commercial Capital.
THE CLIENT'S CHALLENGE
The business’s properties – the catering hall and multifamily investment property – had been financed with a blanket loan (one loan, two properties). In addition, this was a private note with a flexible arrangement with the lender. Payments were always made, but not always paid on a set schedule.
There were also challenges around accounting. The business accountant treated the income from the catering hall and the rent on the three-unit property as a lump sum of income on the tax returns.
Both the blanket loan and the accounting history made traditional lenders less than comfortable and, consequently, not an option for the client.
THE APEX COMMERCIAL CAPITAL SOLUTION
$500,000 Refinance • Long-Term Fixed Rate
A broker with a well-established relationship with Apex Commercial Capital brought the client to us. The broker explained to the client that whenever they come across challenging loans of this type, ApexCommercial Capital is their “go to” option.
The client needed a solution to a short-term bridge loan with a high-interest rate.Apex Commercial Capital was able to give them a long-term fixed rate to solve the problem. This way, they didn't have to repeatedly deal with the issue every six months to a year. The new loan gave them the security of fixed costs associated with their real estate.
The loan from Apex Commercial Capital allowed the client to pay off the outstanding note and establish a conventional financial plan. The more significant impact was that the loan freed the client from the constant worry associated with the bridge loan and gave them financial stability.
The business owner can now focus on the diner and catering business – including three weddings that occurred the weekend after the loan closed — rather than focusing on the real estate financing.