Success story · Towing
Action Towing Stopped Leasing and Bought a 19,000 square foot Warehouse
Action Towing, a family-owned towing company in North Las Vegas, used a $1,406,800 SBA 504 loan from Nevada State Development Corporation, in partnership with JPMorgan Chase Bank, N.A., to own its property for the first time instead of leasing.
| City | North Las Vegas |
|---|---|
| Industry | Towing and impound; monthly public car auction |
| What the loan financed | Purchase of an existing building and property |
| Loan | $1,406,800, with JPMorgan Chase Bank, N.A. |
The situation
Action Towing was started on November 11, 1986 by Robert D. Howell, Sr. His sons John Howell and Robert Howell II worked in the company for years and inherited it in 2004 when their father passed away. The business leased its yard, a 3,500 square foot building with good freeway visibility but no ownership. With the lease coming due, the brothers began looking at buying instead.
The deal
A straight purchase of an existing building and property at 2511 Kiel Way, North Las Vegas, west of I-15: a 19,000 square foot warehouse that had sat vacant for six years. NSDC arranged the SBA 504 loan of $1,406,800 in partnership with JPMorgan Chase Bank, N.A. as the first-mortgage lender. Evan Dickson handled the deal for NSDC; Marcus Kline for the bank.
“We assembled a good team and everything went pretty smooth,” said John Howell. “From the initial documents, Evan Dickson with NSDC and our banker Marcus Kline helped us hand-in-hand and made the process very easy.”
John Howell, Action Towing
The outcome
The company owns its property for the first time. The move from 3,500 square feet to 19,000 square feet let Action Towing bring its monthly public auction indoors, with heat in winter and cooling in summer, instead of holding it outside. Some minor remodeling, fresh paint, a new front counter and window coverings, completed the transformation.
“Our old building was only 3,500 square feet and our new offices are more user friendly.”
John Howell, Action Towing
