PROPERTY TYPE | INDUSTRIAL & FOOD PROCESSING
SIZE | 45,613 SQUARE FOOT COMMERCIAL BUILDING ON 2.74 ACRES
ASSIGNMENT TYPE | REFINANCE | TENANT IMPROVEMENTS | SBA 504
THE BORROWER | Ralph Schulz, President of Dean Distributors, Inc. (“DD”), founded the company in 1952 with $500 in initial capital and a garlic puree processor. Now 66 years later, DD manufactures, packages, and distributes specialty food products such as syrups, sauces, seasonings, dessert mixes, soup and gravy bases, sugar-free beverages, natural and organic products, extracts, flavors and colors, dressing mixes, and miscellaneous specialties. The company markets its own brand and private label products through a network of distributors in the U.S. and maintains a staff of 29 people. DD’s customers consist of restaurants, supermarkets, coffee shops, and other food service companies – their biggest customer being Sysco Corp – a loyal customer for 45+ years.
THE CHALLENGE | Ralph originally acquired the subject property in late 2017 with financing from an SBA 7a loan. Unfortunately, planned ‘out of pocket’ improvement costs tripled based on feedback from the Food & Drug Administration. The original lender was unable to accommodate the revised project and the borrower found itself in a difficult position.
THE SOLUTION |Enter Stonebriar Commercial Finance, and more specifically, its Real Estate Group (“SCF REG”). This transaction originated through a joint broker relationship with Spectrum Commercial Lending (“Spectrum”) and DH Financing. Through SCF REG’s extensive relationship with Spectrum, DH Financing, and TMC Financing, the SCF REG and lending team started formulating a plan of action at the beginning of March 2018 with 60% of construction completed and multiple contractors in the equation. Nick Wall, SCF REG Loan Officer, stated “Our biggest hurdle at the beginning of this project was communication. There were so many moving parts and players involved. We orchestrated several conference calls and did not stop scheduling them until we were all on the same page.” From approval to close, SCF REG funded this project in 7 business days. Jennifer Davis from TMC Financing remarked, ““It was a pleasure partnering with SCF REG. This was a complex request that required the expertise of the SCF REG team. We are thankful for this continued partnership.”
THE RESULTS | DD developed a niche in the industry as a specialty manufacturer with the ability to develop products, compete with national brands, and provide fast and efficient services. Today, DD continues to manufacture and market quality products that serve the needs of its food service customers and direct sales organization. The SCF REG loan has retired the original financing on the subject property and allowed DD to finish the remodel of the facility and relocate its manufacturing operations from a month-to-month lease in Los Angeles, to the subject property. Curtis Valenzuela, EVP, Sr. Managing Director of SCF REG reflected, “Navigating economic turmoil, this well-seasoned business owner, and his vision to push forward is why we are all in this business – helping each other get out of the quicksand that this market can become. We are proud to be part of this company’s livelihood and look forward to seeing what it can do over the next 66 years!”
For more information contact:
|Curtis Valenzuela, EVP Sr. Managing Director||714.595.1696||Curtis.Valenzuela@StonebriarCF.com|
|Ryan Ellis, Director||972.658.5136||Ryan.Ellis@StonebriarCF.com|
|Travis Bell, Commercial Loan Officer||972.896.9596||Travis.Bell@StonebriarCF.com|
|Nick Wall, Commercial Loan Officer||214.385.0969||Nick.Wall@StonebriarCF.com|
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