Flatbay Capital’s CRE loan helps Gulf Coast contractor weather the storm and preserve a legacy

Navigating Change

In the wake of COVID-related disruptions and shifting market dynamics, the multi-generation family-owned business found itself facing a critical financial crossroads. Founded in 1994, they had built a strong reputation in the Gulf Coast region for decades of success in construction, fabrication, maintenance, instrumentation, and electrical services. Their fabrication facility serves as more than just a contracting company. It represents a family-run legacy built on grit, long hours, and unwavering commitment. Beyond its day-to-day operations, the business plays a vital role in their long-term retirement and succession planning.

As contracts were lost and revenue declined, covenants were breached with their long-time local bank. Despite decades of operational success and valuable property assets, the bank severed the relationship, leaving the company without financing, without options, and with the very real possibility of shutting its doors.

That’s when Flatbay Capital stepped in: “We saw real value in the people behind the business,” says Flatbay Managing Partner Elliot Smith. “Our goal wasn’t just to structure a loan, it was to create a path forward.”

Where traditional banks saw risk, Flatbay Capital saw potential. Flatbay developed a custom CRE debt solution, allowing the business to pay off their existing bank debt and avoid a potentially devastating shutdown. The facility was structured around using the company’s fabrication property as collateral, and developing a flexible structure that fit within the company’s financial budget.

A Partnership That Kept The Company Together

Flatbay Capital's CRE loan was able to provide the breathing room needed to stabilize operations, secure new contracts, and keep employees on payroll during a highly uncertain period. Without the extra time, the business and the livelihood of the families behind it may not have survived the pandemic.

Preserving the Legacy

This transaction highlights the vital role non-bank lenders play in helping legacy businesses during challenging times. When the business owners paid off Flatbay Capital, the CEO mentioned to Managing Partner Jorge Puig “Thank you for standing by us all these years. Without your support, we might not be here today. This commercial property isn’t just a building, it's our retirement, our legacy. And you helped us protect it.”

At Flatbay Capital, we are honored to partner with family-owned and privately held businesses when traditional sources fall short. We want to deliver tailored, asset-backed solutions that help strong companies not only survive, but adapt and grow.

Sometimes, preserving a legacy begins with someone willing to say yes.

Flatbay Capital specializes in non-bank commercial real estate loans/lines $1MM+ secured with owner-occupied commercial real estate. To learn more visit: www.flatbaycapital.com or connect on LinkedIn with your local representative: Houston (Vivian Thompson, Lili Tafilaj), San Antonio (Taylor West), Austin (Jesus Becerra, Helena Hauk), Dallas-Fort Worth (Stephanie Roehm), Atlanta (Steve Hansen), Phoenix (Brent L. Coesens)