Hollister
– After more than a decade of leasing on San Felipe Road,
Souriya ‘Ed’ Hoang, owner of Miyako Japanese Restaurant, will
finally own his own business space.
Hollister – After more than a decade of leasing on San Felipe Road, Souriya ‘Ed’ Hoang, owner of Miyako Japanese Restaurant, will finally own his own business space.
Lee and Jeremy Schmidt of County Property Exchange, based in Morgan Hill, have redeveloped the 21,571-square-foot commercial complex at 321 San Felipe Road into Hollister’s first business condominiums – the San Felipe Office Park. The project is the father-son team’s first commercial development venture and they have already made one owner happy.
“I have a great opportunity to own my own business space,” Hoang said.
Not only will Hoang own his own space, but Miyako also will be remodeled. Hoang and the Schmidts hope replacing the water-damaged ceilings will boost business.
The San Felipe Office Park will have 16 units ranging from 851 to 1,972 square feet, costing $209,000 to $439,000. Most of the units are about 1,150 square feet and go for $259,000.
Lee Schmidt said the units are “plug and play,” meaning the owners do not have to pay to install extras like flooring and electrical as they would in “cold shells.” Lee Schmidt compared owning a business condominium versus leasing to home ownership versus renting.
The benefit to business owners over the long run is financial and the benefit to a community like Hollister is also felt in the long run, Jeremy Schmidt said.
“The big benefit to the community at large is when people lease space they are kind of transient,” Jeremy Schmidt said. “When they buy the space they put down long-term roots in the community.”
Hoang said being a small business makes it harder to own a business space, but in the long run it may be worth it.
The difference between owning one of their 1,150-square foot spaces and renting it is almost $600 per month, the Schmidts said. Taking into account an annual appreciation of 4 percent, tax breaks and the average monthly principal payment, the Schmidts estimate that owners will pay $1,378 per month to own versus $1,974 per month to rent.
Jeremy Schmidt said buying a space is the only way a business owner will be able to build toward retirement. When a business owner leases, he just helps build something else.
A long-term financial benefit is not the only draw to the new San Felipe Office Park. The Schmidts also hope foot traffic generated by some businesses will help out others. Jeremy Schmidt said Miyako’s lunch business should pick up from the increased activity.
City of Hollister Redevelopment Project Coordinator Maria De Leon said business condominiums appear to be a new trend. With the project’s high visibility in the north gateway area, De Leon believes the project will be a success and attract businesses to Hollister.
“The site overall is going to be a big improvement,” De Leon said. “We feel that it’s a benefit to the City of Hollister.”
Liz Sparling, executive director of the San Benito Chamber of Commerce, echoed De Leon’s welcome to the county.
“We’re anxious for any new commerce in the county,” Sparling said.
The Schmidts financed the project through San Benito Bank and the Commercial Banking Group. San Benito Bank, a Small Business Administration-approved lender, will provide financing for potential San Felipe Office Park businesses with a 10 percent down payment, the Schmidts said.
The project is waiting for the City of Hollister to approve its final map before it can begin selling units, Lee Schmidt said.
The Schmidts hope to begin selling units at the end of October.
Michael Van Cassell covers public safety for the Free Lance. He can be reached at 831-637-5566 ext. 335 or [email protected].
