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SOLD – Park Avenue Pub + Real Estate, Chico

By in 2023 - Volume 25

JUST SOLD
Park Avenue Pub + Real Estate
Chico

This done deal is brought to you by Andy Mirabell of Restaurant Realty who represented both the seller and the buyer. SOLD: Park Avenue Pub + Real Estate, located in Chico. 

We are often reminded of what a small world we live and work within. When Dave Moore reached out to me, know I worked with Restaurant Realty Company in 2019, it was a welcome pleasure. We have many mutual close friends and shared time getting to know each other years back in Southern California, where I lived and worked within the Restaurant scene there. Dave was always a high functioning professional and has headed many large wine and spirit distributors and companies. He made a shift from Spirits into the wine world and has revitalized wineries and other related businesses, now heading the acclaimed Schug Winery. In 2010, he and his partners bought a working-class bar with real estate in Chico California. They updated the space and operated this business successfully for over decade.

Dave first considered selling in 2019 and looked to me for support on providing an opinion of value. Before we had the chance to list the business in 2020 came the Pandemic shut the hospitality industry down. Dave, being the proactive businessman he is, used this closure time and his Pandemic Relief to invest in upgrading the Park Avenue Pub. He invested over a quarter million in upgrades within, equipment and most importantly a much-needed new building façade and stunning large patio space enclosed from the street, but adding enormous curb appeal the space lacked previously. I continued speaking with Dave and visiting the Park Ave Pub to check on progress and volume through 2020 and 2021. We attempted to list the business in 2020, but timing was off. Thankfully we finally, after multiple attempts, thought the time was right in 2021 to list the Park Avenue Pub and the building.

We worked through a few interested parties that did not pan out. Thankfully, we were connected with a local, successful restaurateur and entrepreneur named Robert Nevers, and worked through all the terms of purchase. As we began working on the contingencies of the deal and work towards escrow we all realized that this transaction would be complicated, long as well as a learning experience for all. We had various structures of this deal that included Seller Financing and other options that were on the table. During 2020-21 Dave accepted two separate EIDL SBA loans that provided funds for distressed business’s due to the Pandemic. The loan terms are wonderful, with long terms, like that of a home loan and with very low interest rates, that are now long in our rearview mirror. At this stage we did not know that we were going to be attempting SBA loan assumptions, which have a very low success rate. Often less than 20% SBA loans are successfully assumed by buyers of an existing business. It was clear that the SBA’s procedure to have a buyer assume these EIDL SBA Loans were a work in progress and clunky to say the least.

We extended our loan contingency period multiple times to allow the EIDL Loan Assumption application to work its way through the various agents and supervisors. There were hurdles and confusions along the way. However, with perseverance by the Buyer, Seller, Escrow, and myself we finally got connected with a more efficient SBA agent, who was able to approve the files and approve Robert Nevers to assume these loans. As a the Buyer, will benefit from the great loan terms for decades to come. 

In the end this escrow and loan assumptions took many months, however we got a well-liked and smart Chico local in as the owner-operator of Park Avenue Pub, and owner of the building his Pub resides within.

Congratulations and best wishes to both parties!

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