Fourth Generation San Francisco Builder Purchases Building to Ensure Long Term Stability for Company

TMC Financing recently helped Rob Walker, founder and owner of UpCycle Builders in San Francisco, purchase the property he was previously leasing for his business. By utilizing the SBA 504 Program, Walker was able to purchase the San Francisco condo for $1.8M with only 10 percent down and a 20-year, below-market fixed interest rate. San Francisco office rents are rising two times faster than the national average. By purchasing his building, Walker has escaped volatile rental rates and fixed his occupancy costs for the long term. 

UpCycle Builders is a full-service renovation and new-build construction firm dedicated to building in a less waste producing manner. Rob Walker is a fourth generation San Francisco builder and a Certified Green Building Professional. 

“UpCycle is a fantastic company that is raising the bar for general contractors,” states Anna O’Brien, senior vice president who facilitated the deal on behalf of TMC Financing. “Much like at TMC, Rob strives to be his clients’ advocate and mutual trust is of utmost importance. He genuinely cares about his clients and his employees, which is why it was so important to him to establish a stable operating location in San Francisco.” 

Walker obtained financing through the SBA 504 Program to purchase a 3,150 square foot mixed used condo located at 3450 3rd Street. The 504 loan allowed Walker to acquire the condo with only a 10 percent down payment and a below-market, fixed 20-year rate. UpCycle occupies about 55 percent of the building, allowing Walker to rent out the remaining space and gain additional monthly cash flow. 

“The 10 percent down payment is what drew me in,” states Walker. “Conventional lenders required 30 to 40 percent down and we simply couldn’t afford that. 

“Working with Anna and the TMC team helped tremendously. Anna was so thorough with her explanation of the program. She sat down with me and went over all the nitty gritty details I wanted to know.”

“I’ve taken out many mortgages throughout the years but this was by far the most thoughtful transaction. Typically, there is an artificial sense of urgency with real estate transactions but in this case, I didn’t feel that way at all. Anna treated this transaction the same way I did, as a serious long-term investment.”                                            

Purchasing the San Francisco property was a crucial move for Walker and UpCycle. Walker is building his real estate portfolio, he’s able to leverage his business for long-term personal gain, he’s writing his rent check to himself and building equity, and most importantly, the stability allows him to focus on his business. 

“We want to increase our foothold in San Francisco and also expand into the North Bay,” declares Walker. “Having a stable operating location allows me the opportunity focus on our expansion and new business opportunities.” 

More About SBA 504 Real Estate Financing

The Small Business Administration 504 Loan Program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost, which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability.

Contact TMC Financing

TMC Financing is the No. 1 SBA 504 lender in the nation and a Premier Certified Lender with the SBA. If you are thinking about buying your own commercial property in California or Nevada, talk to one of our local 504 loan experts. Regardless of where you are in the process—TMC Financing can help guide you through the next steps.

West Coast Commercial Real Estate News