ValueXpress obtained an $800,000 commitment from Country Bank, New York, N.Y., for a 10-year self-amortizing leasehold improvement loan subject to receipt of a SBA 7(a) loan guarantee. The loan will be used to finance leasehold improvements to renovate, expand and reposition a health club/fitness center located in an office park in Yonkers, N.Y. The new space will combine two existing business, Two Jacks, Inc. DBA Gym Cats, which is a gymnastics school operated by John Ryan since 1995, and a previously operated health and racquet club under the name of Court Sports 2. Court Sports closed in February of this year. In May, Chiara LLC entered into 12-year lease for 20,216 square feet of space and reopened the health club/fitness center under the name of Equalize Fitness. The space is currently 60% renovated and should be completed in December; it will feature a newly designed area for Gym Cats, a Parisi speed school and a general fitness area.
The borrower is a long-time client of Country Bank and ValueXpress, which provided a fixed-rate CMBS conduit loan for an affiliate of the borrower in 2003. Country Bank has provided portfolio loans for the client for the past 10 years. Country Bank typically does not provide leasehold financing; however, with a 90% SBA 7(a) guarantee and outside real estate as additional collateral, Country Bank was able to accommodate the client.