Dealmaker: Fountainhead Commercial Capital Closes $11M

Fountainhead Commercial Capital, Orlando, Fla., closed $11.4 million in Small Business Administration 504 loans for a California office-warehouse and a Colorado hotel property.

The SBA 504 loan program provides financing for fixed assets such as real estate, furniture and fixtures.

Fountainhead financed catering company 24 Carrots Restaurant Group’s $8.1 million purchase of an office-warehouse property in Costa Mesa, Calif. It provided both first and interim second deeds of trust, enabling the borrower to acquire land and building with long-term fixed interest rates at nearly 90 percent loan-to-cost financing. 

Chris Hurn, Fountainhead’s founder and CEO, said 24 Carrots Restaurant Group plans to expand the asset to more than 45,000 square feet to meet growing demand.  

Fountainhead also closed a hotel loan for a 77-room Comfort Inn & Suites in Westminster, Colo., just north of Denver.

Located next to Interstate 25, the 40,000-square-foot hotel occupies two acres. Fountainhead provided a $3.3 million first deed of trust, allowing the borrower to acquire this hotel with a long-term fixed interest rate at 50 percent loan-to-value ratio.

Purchaser Interstate 17 Inc. plans to renovate the hotel into a Quality Inn and Suites.