Red Rock Fertility, a Las Vegas-based fertility center, has purchased a new building at 9120 W. Russell Road in Southwest Las Vegas. The two-story, 12,500-square-foot building was purchased with an SBA 504 loan from TMC Financing and a conventional loan through Bank of America. TMC Financing provided $1.7 million of the project’s $4.7 million total cost.
According to Red Rock Fertility founder and practice director Dr. Eva Littman, continued growth since opening in 2008 necessitated more space for the busy practice. “We started with 2,800 square feet in 2008, and expanded for the first time in 2010 by adding 3,200 square feet. We’ve grown by about 10 percent every year and are now busting at the seams in space I thought we would never fully need.”
Littman was renting her office spaces and said she decided to look at purchasing her own building when she saw the variety of buildings that were available. “I wanted the intimacy of a stand-alone building that also had the space I needed to expand,” she said. “When I found this building, it was not available, but I knew it was perfect, so I waited until it became available. It’s perfect.”
Littman said her new building, which is scheduled to open this fall, will have a full surgery center with two operating rooms. “It will also have IVF (in vitro fertilization) operations and a patient education center on the first floor, with a fertility clinic on the second floor,” she said. “We are tripling the size of our IVF lab and installing additional state-of-the-art equipment.”
Littman said the surgery center offers an increased source of revenue for the medical practice, as it will be open to OB-GYNs and urologists for surgical procedures. “It’s everything and more I’ve always wanted,” she said. “Our clients spend a lot of time at our facilities. This will be a comfortable and spacious place for them to visit.”
When Littman reviewed financing options for purchasing her own building, she said her banker recommended an SBA 504 loan. “I liked the terms for an SBA combination versus just a traditional loan,” she said. “I don’t like debt. I like to get things paid off. This combination allows me to pay off the loan within 20 years. I don’t want to be in debt when I’m 80!”
Littman said another benefit of an SBA 504 was a lower down payment requirement. “This option had a 10-15 percent down payment instead of 20 percent down,” she said. The doctor liked working with the SBA so much that she joined the SBA Emerging Leaders program, an executive-level training series sponsored by the U.S. Small Business Administration. “I enjoy the business side of my practice in addition to the medical practice,” said Littman. “This program will help me prepare to pursue my MBA, which I want for expansion to other states and future business opportunities. The SBA has been a great partner in helping me grow my business.”
Littman said her new building will open by the end of the year and is projected to help the practice accept approximately 20 percent more patients immediately. Red Rock Fertility currently employs 28 people and Littman said staff will be added once the new building opens.
About SBA 504 real estate loans
The U.S. 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 (TPC), which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. A typical 504 loan project requires a down payment of only 10 percent of the TPC from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company (CDC). By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides long-term stability to both businesses and communities. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website.
About TMC Financing
Founded in 1981, TMC Financing is the largest provider of SBA 504 commercial real estate financing in Northern California and Nevada. TMC consistently ranks among the top CDCs nationwide, funding projects worth more than $8 billion across California and Nevada. More than 4,700 businesses have benefited from this financing, resulting in the creation of an estimated 46,000 jobs. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.