Small business expansion in Sacramento area
Only days apart, Sacramento Elite Patrol and Bottles & More both closed on separate warehouse deals to expand their businesses in the midst of a struggling economic recovery. One business acquired its very own office/warehouse building in South Sacramento totaling 9,266 sq.ft. with SBA loan financing, while the other jumped from a home based business operation into a 10,872 sq.ft. leased warehouse space in West Sacramento. Clearly, there are some bright spots in the market if you know where to look.
Click here for related story by the Sacramento Business Journal.
Sacramento Elite Patrol
Sacramento Elite Patrol (formerly Capital Force Protective Services) is a fully licensed and insured security agency, which serves Sacramento and the surrounding areas. The agency provides expert service and consultation specializing in armed/unarmed patrol service, and executive protection for apartment communities, construction sites, hotels, and special events. They respond to auto burglaries, theft, robberies, loitering, trespassing, gang activities, vandalism, drug traffic, disturbing the peace, and facilitation of eviction notices. Sacramento Elite Patrol is a woman owned business led by Claudia Marques (President / CEO). Husband Joseph Marques (Vice President), was selected for inclusion in the 2012 edition of The Latino American Who’s Who. With a growing team of 50 security personnel, the Marques team recognized the unique opportunity with both low interest rates and price affordability to acquire a 9,266 sf office/warehouse building at 8131 37th Ave in South Sacramento, not far from his original leased facility, which was much smaller.
Bottles & More
Bottles & More, primarily a wine bottle distributor, was launched in 2003 by Jim Reed, a 17 year veteran of the industry. Reed’s business model primarily involved drop shipments (approximately 80% of sales) with little need for warehouse space. The entire operation only required 1,500 sq.ft. of storage capacity… until now. Due to low overhead and a continually growing business, Reed’s gross revenue increased by a minimum of 11% for each of the past seven years with two years exceeding 40% (including 2014). Reed now has the opportunity to grow his business by an additional 50% overnight (in 2015) by accepting clients from an international company, who is the biggest importer of glass wine bottles and olive oil bottles in the U.S. This partner is now divesting itself of small orders, which fits perfectly into Reed’s business model. Since this new piece of business requires storage and distribution facilities, Reed took his operation to the next level by leasing a 10,872 sq.ft. office/warehouse space at 859 Stillwater Road in West Sacramento.
The price to acquire owner/user warehouse buildings and lease rates for distribution facilities are still among the lowest ever within the Sacramento area. Qualified borrowers and tenant applicants can take advantage of historically low interest rates, minimal SBA loan down payments, and attractive lease terms, often with significant concessions benefiting an expanding business.
Brian Jacks of JACKS Commercial Real Estate represented both Sacramento Elite Patrol and Bottles & More for their sale and lease transactions.
Article contributed by Brian Jacks
Brian Jacks is a Sacramento commercial real estate broker (since 1996), specializing in commercial leasing and investment sale transactions for retail, office, industrial, multifamily, mixed-use, and special purpose properties. Having spent over 20 years with Wells Fargo, he personally facilitated the underwriting, approval and funding of more than 225 commercial real estate loans totaling over $1 billion in proceeds. Jacks is the Principal Broker for JACKS Commercial Real Estate, which serves the Sacramento market for commercial sales and leasing of all property types. For more information, contact:
Brian@JacksCRE.com
(916) 837-3456
BRE Broker Lic. #01217349
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