.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Here’s the stuff of a business dream: a maple tree, a cinder block building and a frame house, all on one lot, the kind of financing you might find only in a recession and, wake up now, you’re ready to build some equity.

Matt Cale and Kris Gregersen share that dream. They operate separate small businesses within a short distance of each other on University Avenue in Windsor Heights.

Both are members of the city’s chamber of commerce, and they are active in other local business activities.

Cale is an agent for State Farm Insurance. At the moment, he has a tidy office in the Windsor Heights Town Center at 6601 University Ave. It’s a good location in a modern development. But he’s ready to move.

Gregersen owns Premium Solutions, a company that consults with corporations for the creation of their promotional products. He is located just two blocks west of Cale, and he, too, is ready for a move.

Both men are tired of paying rent to owners who persistently raise maintenance fees. In addition, they would like a piece of the action along a street that is being transformed into a retail and commercial center.

Cale said the insurance business has not faltered during the recession. “Everybody needs insurance,” he said.

For Gregersen, that recession has been rough, but not intolerable. He has been able to maintain cash flow in tough times, an achievement that put him in good stead with lenders when he and Cale decided to pursue a dream to become property owners.

At one point, Gregersen had considered going it alone in a desire to own the building where he worked.

“But I wasn’t in a position to do it at that point in time,” he said.

After talking about his plans with Cale, the two decided to form Grale LLC and search for property somewhere between 42nd Street and 73rd Street on University, a stretch of real estate that would put them within a few minutes of their clients.

They also went on a search for money.

Property turned up first, a parcel in West Des Moines that would require some remodeling. That presented the money issue. They couldn’t buy the property and pay for improvements..

Less than a half block away from Cale’s office was the piece of property with the maple tree, the cinder block building and the frame house.

The lot also fell within a stretch of University Avenue that is the target of a Bankers Trust Co. small business loan program. That would help with the money.

And because of the recession, the U.S. Small Business Administration had adopted some fairly liberal standards for a development loan program geared for owner-occupied properties.

The pieces were falling together on what they estimated to be a venture that would cost them nearly $650,000.

The third piece dropped into place when the city of Windsor Heights offered to provide $120,000 under a grant program tied to a tax increment financing district.

Cale and Gregersen could qualify for the city funds, provided that their planned improvements to the property would sustain $476,000 in assessed value for 12 years. They also must create the equivalent of five full-time jobs.

With the city funds in hand, Cale and Gregersen obtained roughly $500,000 in loans from Bankers Trust, with nearly half provided under the lender’s business loan program that operates in Windsor Heights and Grimes. The program provides up to $250,000 at an interest rate 2 percent under prime, with a floor of 3 percent. The rate is locked in for three years, then it floats with the prime rate. Terms of the program also require borrowers to move their banking business to Bankers Trust.

The bank also is issuing another nearly $250,000 loan that is backed by the U.S. Small Business Administration under its 504 program, which provides fixed-rate financing to acquire real estate and other fixed assets.

Without those elements in place, Cale and Gregersen would still be dreaming.

Instead, they are working on plans to tear down the frame house, and expand and renovate the cinder block building. They will have a bioswale out front to collect storm water and an informal park at the back of the property for employee picnics and neighborhood business gatherings.

Gregersen said the rent he pays to Grale LLC will be about the same as he pays at his present location. Cale will pay $500 less, and he echoes the sentiments of his partner when he says, “I’ll be building equity.”