Globalbiz CRE Academy

Case Study

Owner-User Industrial Flex Building

beginnerIndustrial FlexSBA 504~16 min

The Deal

You are a loan officer working with Meridian Precision Machining, LLC, a small manufacturing business that wants to buy Ridgeline Flex Business Park, a 12,000 SF industrial flex building, and move its operations into part of the space. The building's other suite is already leased to an outside tenant, so before you can size the loan you need to confirm the deal actually qualifies for SBA 504 financing.

You’ll Practice

  • Apply SBA's 51% owner-occupancy rule to the purchase of an existing building
  • Extract a tenant's leased square footage from a lease excerpt
  • Calculate the standard SBA 504 50/40/10 capital stack on a total project cost
  • Explain why SBA 504 fits an owner-user acquisition better than conventional bank financing