SBA Hot Topic Tuesday — Woman-owned Auto Repair Shop Purchases Buildings it had been leasing for 16 years
December 30, 2014
By Bob Coleman
Editor, Coleman Report Afternoon Brief
Hyundai’s Only, a Las Vegas-based auto repair shop, has purchased three buildings it had previously been leasing in Southwest Las Vegas. With the help of TMC Financing and an SBA 504 loan, the company now owns 12,275 square feet of service bays and storage facilities at 5410 Spring Mountain Road. TMC Financing provided $537,000 of the project’s $1.3 million total cost. The balance of the loan was provided by City National Bank.
When Kelly Collins’ landlord of 16 years decided to retire and sell her auto shop’s three buildings, the owner of Hyundai’s Only had two choices: to purchase the buildings and start building her own equity or take a chance that a new landlord would be as great as her previous one. Collins is the new owner of her company’s auto shop and storage buildings and worked with TMC Financing to make it possible.
“This was one of the few loans we have funded in which all participants were women,” said Ann Santiago, senior vice president of TMC Financing’s Las Vegas division. In 2014, TMC Financing was the largest SBA 504 lender in Nevada. “Kelly is an incredible female business owner and our partners in the deal at City National Bank are also brilliant business women. We are very proud to support women-owned businesses in Southern Nevada.”
Hyundai’s Only specializes in all major repairs of Hyundai vehicles as well as some other makes of cars. The company has been in business for 20 years and leasing their current location for the past 16. “We had a great landlord, but he never wanted to sell,” said Collins. “When he decided to retire and sell the buildings, we chose to build equity in our own property. Buying is always better than leasing, so we took advantage of the opportunity.”
Collins’ attorney recommended an SBA 504 loan to purchase the buildings and she worked with TMC Financing throughout the process. “At first it seemed daunting, but it actually wasn’t that hard,” she said. “If you can manage it, purchasing your own building or office space is definitely a better long-term investment. If I had the opportunity to purchase years ago, where would I be now?”
According to Collins, working with TMC Financing to apply for an SBA 504 loan was easier than expected. “They worked with me through every step of the process. They were pleasant to work with, encouraging and super helpful.”