Flatbay Capital Closes $5.5MM Cash-out Refinance for Well Known Houston Furniture Retailer

Flatbay Capital was approached by a well-known furniture retailer in the fourth quarter of 2023 with a refinance opportunity. The company, which has been operating since the early 1980s, has since grown into multiple locations across the greater Houston area. In 2020, the company purchased a 60,000sf office space in northwest Houston and needed capital to help fund the renovation into a new retail location. Due to Covid, the company, despite having a strong financial history, was not able to secure a loan with a bank. Instead, they turned to another commercial real estate lender to help fund the project. The company was able to complete the renovation, but the relationship with their former lender turned sour when the lender began surprising the client with unexpected fees and excessive reporting requirements. With their note maturing, the retailer’s attorney reached out to Flatbay Capital BDO, Lili Tafilaj for help. 

Flatbay Capital was able to put together a new, three-year interest-only deal that unlocked equity, eased reporting requirements, and reduced fees for this great client. The excess cash was used to support the expansion of the company’s business and the reduction in required reporting freed up time to focus on their core business. 

This client will easily transition to a commercial bank when the deal matures but appreciates the great work Lili Tafilaj and the Flatbay team did to provide flexibility during a time of transition and growth.