New shop, SBA loans and the waiting game
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  1. #1
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    Default New shop, SBA loans and the waiting game

    Around November 2020 I was doing my weekly review of the local industrial real estate listings and I found the perfect shop (TBD of course).

    I made an appointment to see it and made an offer a week later. My wife, more frugal than myself, agreed it was the shop for me. Offer was contingent on financing and I had a 45 day due diligence period.

    I used the SBA 504 Loan program. That process wasn't bad. The SBA is very busy right now, so there were delays that pushed me past my due diligence period. My deposit was sort of flapping in the wind at several points.

    The real problem was the environmental reports. The seller had a Limited Phase II which wasn't good enough for the SBA. They needed a Phase I.

    The Phase I, which took weeks, indicated a need for another Phase II. I say that was BS and a money grab, but it was perversely funny I had to pay a bunch of money to save my other money and also have a chance the whole deal would fall through.

    All this took a bunch of time and worry. Finally Monday I closed on the building.

    kb-building-01.jpg

  2. #2
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    The building was built by Kirk & Blum out of Cincinnati. They have a neat history but were the only occupants from 1937(ish) to early last year. They joined with CECO and closed the Louisville location.

    It's around 28k sq feet and while old, it was well maintained. New roof in 2019. Electrical on every pole. 240v 3ph. Welder plugs everywhere. (I'm a welding/fab shop) Overhead fans in all welding bays. I'll have some updating to do but as much plug and play as I could want.

    They had 30 shop employees, 10 in the field, and 8 in the office...I have 3 guys and myself, we're going to get lost in there.

    We're moving this week and next, I hope to have some more pics soon.

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  4. #3
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    Let us know how it works out 28k sqr ft... that 7000 sqr ft per employee, you will need radio,s...Phil

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  6. #4
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    Wow! Would love to see more pictures.

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    Looks great! You won't have any issues with storage space for material.

  8. #6
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    Quote Originally Posted by Phil in Montana View Post
    Let us know how it works out 28k sqr ft... that 7000 sqr ft per employee, you will need radio,s...Phil
    And yet the trouble makers will still find each other.

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  10. #7
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    Quote Originally Posted by CAMasochism View Post
    And yet the trouble makers will still find each other.
    Shop politics seem to go on no matter how small a work crew there is.

  11. #8
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    Congrats

    Having a clean environmental report is very valuable. It is like a clean std test, makes all those past sins go away.

    Cool building, wouldn't want to heat it.......

  12. #9
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    It'll fill up faster than you think. All of those good deal machines follow you home a lot faster when you don't have to worry about trying to make room for them.

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  14. #10
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    Congrats on the building. My GF is an environmental consultant here in Maine so it may be different but the terms phase 1 and phase 2 are familiar to me and I would agree with you that it sounds like you got screwed on the environmental aspect, unless the existing limited phase 2 was somewhat “old”. She talks about SBA too and their requirements. At this point you’re covered and water under the bridge, but if you want me to ask her some questions PM me.

  15. #11
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    Is that a basement, or some kind of lift in the lower right of pic?

  16. #12
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    Sweet Baby *****, that's a f'ing huge space, I'd occupy one corner, maybe 2000 sqft, and have a go-kart track for the remaining area.

    Certainly space will not be a limitation on future business plans

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  18. #13
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    Quote Originally Posted by Mike1974 View Post
    Is that a basement, or some kind of lift in the lower right of pic?
    It's a loading dock cut into the floor. There are steel plates covering half of it. It was made to be removable and to get a flatbed in there to side load. But looking at the weight of the floor plates and supports underneath I'm thinking they only did that once.

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  20. #14
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    That is an awesome building! Congrats!

    Can you put some walls in and rent out some of it? 28K is a lot of feets!

    $20/sq ft is incredible. I've got about that just into my building. $40/ sq ft land and building.

  21. #15
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    Jam your operation into the smallest space needed. Or buy bicycles for all. Been there. Keep all operations close enough to be efficient. When you move you will not be able to find anything, and a lot of manpower looking for stuff with long walks.
    Nice space!

  22. #16
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    28K would be super!

    I'm jealous for sure!

    Although - I would have to get up there and insulate and tin over all that winder space.


    --------------------

    Think Snow Eh!
    Ox

  23. #17
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    Quote Originally Posted by Scruffy887 View Post
    Jam your operation into the smallest space needed. Or buy bicycles for all. Been there. Keep all operations close enough to be efficient. When you move you will not be able to find anything, and a lot of manpower looking for stuff with long walks.
    Nice space!
    Thanks. I want to be pretty tight but we've been walking over each other in 6k feet for a while now. One guy wants a corner of his own and we all want to spread out a bit.

    Quote Originally Posted by Garwood View Post
    That is an awesome building! Congrats!

    Can you put some walls in and rent out some of it? 28K is a lot of feets!

    $20/sq ft is incredible. I've got about that just into my building. $40/ sq ft land and building.
    There is a separate 1000 sq feet 'shed' of sorts attached to the back I will rent out for storage. Two overhead doors and some pallet racking.

    I may rent out the front office (I'll still have plenty) but not sure just yet.

    I'd consider walling/renting some shop space but I would be very particular.

    Quote Originally Posted by Ox View Post
    28K would be super!

    I'm jealous for sure!

    Although - I would have to get up there and insulate and tin over all that winder space.


    --------------------

    Think Snow Eh!
    Ox
    The winders are my favorite. They bricked up half of them on the lower wall on one side sometime in the past though. I worry about heat but we're not in a very cold climate.

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  25. #18
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    Congratulations it looks great. Are you willing to share what this cost you? I bought my building in 2017 using the SBA. Even though I didn't ask for it they paid 8 months of payments because of the pandemic.

  26. #19
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    Quote Originally Posted by metal-ica View Post
    Congratulations it looks great. Are you willing to share what this cost you? I bought my building in 2017 using the SBA. Even though I didn't ask for it they paid 8 months of payments because of the pandemic.
    The price and info is all on Loopnet.

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  28. #20
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    Up until I bought my place I always dreamed to have a place the size of a Walmart Supercenter, then I had to do maintenance on mine and I also like to keep it a nice temp. Now I think my 6k shop is an ok size. It is about the most I want to handle by myself. Keeps me from buying anymore stuff too.

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