Analysis of Airbnb's Impact on New York City's Housing Market (2016)

 
 

MFY Legal Services and Housing Conservation Coordinators engaged BJH to conduct an analysis of the interaction between the short-term residential rental market, primarily short term units listed on Airbnb, and the traditional rental housing market in New York City. In order to carry out this analysis, BJH created a classification system using third-party listings data that isolated a category of units it referred to as Impact Listing. In conjunction with providing an analysis of the neighborhood and price effects of Impact Listings, BJH analyzed broader neighborhood and housing trends in the neighborhoods with high concentrations of these listings. The analysis demonstrated high correspondence between areas with growth in Impact Listings and increases in housing prices and constrained supply. The full report, which was issued in June 2016, is available here

Creative School Construction Financing Program Advisory (2016)

 
 

BJH worked as an advisor to Civic Builders in the early conceptual design of a new program, the Building Equity Initiative, an innovative approach to financing charter school construction. Traditionally, charter schools have had difficulty accessing standard financial products and capital due to a lack of expertise (school management focused on quality education, not financial markets and construction) or equity (funding based on per pupil allocations and donations, not capital needs). This program supports a loan pool of standardized transactions, allowing for faster execution, lower borrowing costs, and greater access to capital for both established and emerging schools.

BJH provided strategy and analysis around the structure of the program, both financially and operationally. The team reviewed current financial market conditions for short and long term products, identifying the largest gaps in the market, and participated in interviews with potential lenders and borrowers, summarizing findings for funder presentations. BJH also vetted issues related to program operations, advising on board structure, compliance and risk management tools.

Historic Richmond Town (2016)

 
 

BJH participated on a team of architects, engineers, and historic preservationists to reimagine the “Parsonage Parcel” at Historic Richmond Town (HRT) in Staten Island. HRT aspired to better utilize their unique real estate assets, increase foot traffic on the campus and create more retail opportunities to support their operations and programming budget. BJH created an economic implementation strategy for the new master plan design, highlighting financial feasibility, development tradeoffs, and potential funding sources. The plan allows HRT to prioritize development projects across the Parsonage Parcel to fit their organizational goals and resources and leverage additional funding sources.

Long Island City Comprehensive Plan (2016)

 
 

BJH worked with the Long Island City Partnership and Public Works Partners on the LIC Comprehensive Plan, which was released in November 2016.  BJH was responsible for the existing conditions and incentives recommendations sections of the Plan, which include a study of demographics, market trends across a variety of real estate types, and business sector changes over the past 10 years.  The report highlights the recent and significant development of apartment units in LIC, as well as the challenges arts organizations, industrial companies, and commercial office users are experiencing in finding affordable space.  The Plan's recommendations seek to enhance the area's revitalization, leverage the district's market potential, and retain the mixed-use fabric of the neighborhood.  Find the Plan here.

Port Authority Bus Terminal Design + Deliverability Competition (2016)

 
 

BJH, working with a talented team of design and construction professionals, created the lowest-cost proposal in the Port Authority of New York and New Jersey’s (PANYNJ) 2016 Midtown Bus Terminal Design Competition. BJH’s main task on the team was to identify a potential receiver district to land unused air rights from the surrounding PANYNJ properties and to model potential real estate revenues streams that could help pay for the construction of the new terminal. BJH’s approach takes into account the complicated construction phasing and existing conditions in the neighborhood, careful to protect community facilities and historic properties. The team’s proposal reshapes the public realm surrounding the PANYNJ bus terminal, adding significant new open space and connecting the improvements already underway at Hudson Yards, the High Line, and the Javits Center.

Regional Food Distribution Hub Feasibility Study (2016)

 
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BJH Advisors worked with an urban design and planning firm to analyze the financial feasibility of a new, state-of-the-art, USDA compliant food distribution hub that supports regional Michigan farmers for the Detroit Eastern Market Corporation. The proposed hub includes a multi-building campus that would house large and small distributors, provide dedicated wholesale space for local farmers, and include on-site food processing. BJH created a financial model to estimate the construction costs necessary to build such a project, assess the revenue associated with the project based on market demand, and ultimately, project the gap associated with development of this hub. The analysis also tested the impact of conditions such as changes in demand, real estate tax obligations, or access to funding resources on feasibility. BJH also prepared economic impact analysis to estimate the number of jobs and the values of wages and total economic output associated with the proposed hub. The findings of the analysis will help Eastern Market Corporation negotiate with prospective public and private partners, funding sources, and tenants.   

Rutgers University (2016)

 
 

BJH conducted market research, funding identification, and economic impact analysis on behalf of the Office of Research and Economic Development at Rutgers University. The “Innovation Park@Rutgers” will catalyze university-industry-government collaboration, support innovators and entrepreneurs, and create tangible economic growth and community benefits. BJH’s work allows Rutgers to right-size the project for the University and surrounding area and understand the economic impact of its future activities. BJH conducted broker and developer interviews, described existing supply and demand of technology and life sciences real estate in the area, and quantified direct, indirect and induced impacts using input-output multipliers. A copy of the final report can be found here.

Spofford Live/Work Campus (2016)

 
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BJH advised Gilbane Development Co. in its submission to the New York City Economic Development Corporation for development rights to the Spofford Live/Work campus in the Hunts Point section of the Bronx.  Gilbane, along with the Hudson Companies and Mutual Housing NY, was designated as the development team in late 2016.  The program includes affordable housing, relocation of the Head Start program on site, an industrial presence related to food uses prevalent in Hunts Point, as well as retail and other commercial space.  For additional information, click here for the Wall Street Journal article about the project.

Urbane Development (2016)

 
 

Urbane Development (Urbane) engaged BJH Advisors to conduct a market analysis and provide recommendations regarding the redevelopment of the Flatbush Caton Market.  Urbane, in conjunction with BRP Development, was selected by the New York City Economic Development Corporation to redevelop the 32,000 square foot parcel that now includes the public market.  BJH’s work included analysis of retail supply and demand in the area through primary and secondary data, case studies of successful national and international public markets, and a compilation of viable funding sources and tax incentives that could support development and operation of the public market.  BJH’s final report will help Urbane develop a business plan for the redeveloped market – including its vendor composition and leasing strategy – and support Urbane in its efforts to secure public support and funding for the project.

Hugo Neu Kearny, NJ Campus (2015-2016)

 
 

The Hugo Neu Corporation engaged BJH Advisors to provide market analytics, financial feasibility, and tax analysis for its campus in Kearny, NJ.  The campus was badly damaged by Superstorm Sandy and, through a series of planning studies subsequent to Sandy, was positioned for significant new investment.  The analysis began with a market scan, providing important demand indication for the campus and competitor markets that helped the company identify a new leasing approach.  Next, BJH provided Hugo with a cash flow model to determine the impact of various redevelopment scenarios on developer returns.  Finally, BJH provided Hugo Neu with economic impacts and tax analysis to guide an incentives discussion for future investment options. 

Regional Plan Association (2015-2016)

 
 

Regional Plan Association (RPA) engaged BJH Advisors to conduct an analysis of commercial market opportunities for Jamaica, Queens, particularly those connected to John F. Kennedy Airport (JFK).  The analysis was designed to support the planning efforts of the Jamaica NOW Action Plan and the Greater Jamaican Development Corporation. BJH’s analysis focused on identifying retail, office, and industrial opportunities and unmet demand based on economic and real estate trend analysis and a literature review of airport-related economic development strategies and impacts. The resulting report and recommendations presented market-based strategies to leverage JFK airport to generate economic growth.

Sunnyside Yard Feasibility Study (2015-2016)

 
 

NYC Economic Development Corporation and Amtrak led a study on the feasibility of the decking over of Sunnyside Yard.  As a part of the analysis, BJH Advisors prepared estimates of potential development values and property tax revenues under various phasing scenarios for the redevelopment of sections over Sunnyside Yard as well as adjacent areas. The analysis relied on BJH’s expertise in tax policy, financial feasibility, and land use policies. A copy of the report can be found here.

Brooklyn-Queens Connector (BQX) Financial Feasibility (2014-2016)

 
 

BJH was retained by the Friends of the BQX, a group led by property owners and business interests along the Brooklyn-Queens waterfront, to study the financial feasibility and determine optimal financial structuring for a new streetcar that would stretch from Astoria, Queens to Sunset Park, Brooklyn. BJH estimated development scale along the 11 neighborhoods in the corridor and applied the concept of “transit premiums” to real estate values and development pace. The computed value was then compared to the cost of the system. BJH’s work was presented to the City of New York, who subsequently hired BJH as part of the initial team to test design, engineering and financial/economic feasibilities. 

Red Hook Brownfield Opportunity Area Study (2014-2016)

 
 

The Southwest Brooklyn Industrial Development Corporation received a Brownfield Opportunity Area (BOA) grant from the New York State’s Department of State to create a revitalization plan for an approximately 343-acre area of Red Hook, Brooklyn. The plan is designed to incite economic and industrial business growth in Red Hook by reactivating vacate and under-utilized sites. BJH Advisors, LLC was currently part of the team studying the opportunities and challenges in activating under-utilized brownfields in Red Hook.  BJH Advisors conducted real estate market analysis for the industrial and commercial sectors in Red Hook and identified financing structures that will support the rehabilitation and/or development of industrial facilities in Red Hook, given the market conditions and challenges related to brownfield status and resiliency planning.

The United Methodist City Society (UMCS) (2014-2016)

 
 

BJH worked with United Methodist City Society (UMCS) on a repositioning/disposition strategy for an underperforming property in Harlem.  Over the course of the engagement, BJH provided market and demographic analysis to inform development of UMCS’s strategic goals, provided a highest and best use analysis for the property comparing several likely redevelopment strategies, and facilitated discussions between UMCS and agency staff to discuss various partnering opportunities.

Krinos Foods (2012-2016)

 
 

BJH assisted Krinos Foods, Inc. in the planning and development of its new headquarters, production facility, and distribution hub in the Bronx, New York.  Krinos Foods is North America’s largest importer and distributor of Mediterranean specialty food products, with operations across the U.S. and Canada.  Services included team assembly, financial feasibility analysis, budgeting, site selection, and incentives negotiation.  BJH managed the submission and successful award of an RFP by the New York City Economic Development Corporation (NYCEDC) for the final site at the Bathgate Industrial Park in the Bronx.  BJH negotiated the purchase of the site at an attractive price, and obtained a full benefits package from the New York City Industrial Development Agency (NYCIDA).  BJH managed the public approvals process, including preparing briefing materials for the community board, City Council member and Borough President.  BJH facilitated the real estate transaction leading to a closing on a $23 million acquisition and construction loan.  The 100,000 square foot facility was completed in the spring of 2016, insuring the retention of approximately 100 well-paid jobs in New York City and improving Krinos’s operational efficiency.