BJH advised Great Performances on its successful submission to New York State’s Consolidated Funding Application. Great Performances sought to move its 25,000 square foot facility from Hudson Square to a 40,000 square foot facility in the Mott Haven neighborhood of the Bronx. The expansion of its facility will allow the company to increase its work force and further engage with local businesses. BJH’s project scope involved undertaking location and economic analyses, determining timeframes for execution, and managing the preparation and submission of the Consolidated Funding Application. The New York City Regional Economic Development Council declared Great Performances’ expansion as a priority project in September 2018 and awarded the company a $1 million grant in December 2018.
Empire State Development (ESD) / Moynihan Station Development Corporation (MSDC) engaged BJH to provide real property tax analysis, financial feasibility, and underwriting support for the Moynihan Station redevelopment project. Using its expertise in New York City tax and incentive policies, BJH was able to assist ESD / MSDC in negotiating the payment in lieu of tax (PILOT) structure in the State’s ground lease with the selected developer. Arriving at an appropriate PILOT structure required BJH to determine baseline market and assessed values for comparable properties, project the property taxes that would be due from the repositioned asset, and advise on available incentives and current tax policy in the geography. ESD / MSDC used BJH’s work in support of a successful effort to obtain a Transportation Infrastructure Finance and Innovation Act(TIFIA) loan from the U.S. Department of Transportation. BJH prepared and presented materials on project economics and estimated PILOT revenues to rating agencies, including stress testing for downside scenarios.
BJH advised National Elevator Cab and Door Corp. (National Elevator), New York City’s premier designer and manufacturer of elevator cabs and doors, on its application for discretionary benefits from the Empire State Development Corporation. National Elevator applied to defray a portion of the capital investment it is incurring as part of its move to a new, custom-renovated production facility at the Brooklyn Navy Yard. BJH also assisted with National Elevator’s lease negotiations at the Brooklyn Navy Yard, where it will relocate in 2019. Moving to the Brooklyn Navy Yard will allow National Elevator to offset increasing operating costs and retain all 100 of its current employees, including approximately 70 union members, and to continue to grow and service its clientele in New York City.
BJH Advisors was the real estate and financial advisor for the Radson - Kingspoint Heights winning submission to the NYCEDC for development of 495 Eleventh Avenue (the former Slaughterhouse site) in Hudson Yards. The project comprises approximately 700,000 square feet in a 45 story tower, including NYPD space, retail, community facility, Class A office, dormitory, and approximately 230 affordable housing units. BJH helped assemble the project team, including the architect, geotech and structural engineer, and land use and real estate counsel. BJH project managed the submission package and helped align the program with Mayoral and community priorities. BJH performed project underwriting, and assisted the developers in discussions with debt and equity sources. Radson – Kingspoint Heights was advised by BJH throughout the negotiation with NYCEDC over program, scale, real property tax obligations, ground rent, and affordability levels of the residential units. In addition to undertaking Uniform Land Use Review Process for the disposition and rezoning, the project will require ongoing and significant coordination with public agencies.
The Brooklyn Brewery engaged BJH to assist it in siting and developing a new 400,000 to 1,000,000 barrel brewery. The Brewery sought to expand capacity primarily to serve overseas markets in Northern Europe where demand has been growing exponentially. Ideally, the Brewery sought to locate within close proximity to the Port of New York and New Jersey, and at a site that either had rail or where rail could have been easily activated. BJH’s project scope involved undertaking location analysis, including performing tax and economic development program and benefit level comparisons across jurisdictions, as well as negotiating with land owners, determining timeframes and processes for obtaining discretionary land use and other development approvals, interfacing with public partners, and analyzing capital requirements and potential for investor returns.
BJH provides consulting services through the Association of Neighborhood and Housing Development (ANHD) for their member non-profit organizations’ applications to the City’s Industrial Development Fund. BJH offers advisory services through various mediums (phone, internet, in-person) regarding structural, financial, and market-related public program funding considerations for industrial development projects. BJH also consulted on pro forma structure, incentives, market analysis, developer processes, and tenant diligence, in order to best present and support ANHD’s applicants. BJH conducted a seminar and educated ANHD’s members on industrial development projects and incentive policies.
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.
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.
Steuben Foods engaged BJH, along with JLD+P, to develop a repositioning concept for its existing manufacturing campus in Jamaica, Queens, a dense mixed-use urban area that has suffered from periods of severe underinvestment. The strategy recommended investing in an expanded pilot plant/food technology partnership center – the Innovation Center – while rationalizing and downsizing more traditional manufacturing processing. Steuben, which is engaged in aseptic processing and packaging solutions for a variety of foods, soups, drinks and dairy products, began as a traditional manufacturer of yogurt over 30 years ago. Aseptic processing and packaging is an advanced form of manufacturing that involves flash heating of juices, soups, drinks, dairy products and other foods, and placing them in sterile containers. The process, which is widely embraced in Europe, requires special equipment and “clean-room” environments. The entire process uses less energy and allows for greater nutrient retention due to the minimal level of processing.
With the help of BJH, Steuben received Regional Council support for an allocation of New York State tax credits for new investment and job growth for the Innovation Center. In return, the public sector benefits from private commitment to R&D.
BJH advised a Bronx property owner on the development and financing of a fresh food distribution campus, which included a new facility for GrowNYC and the possibility of Hostos Community College locating a “Bodegeros Institute” within the main building. BJH took the project, known as the “Oak Point Fresh Food Campus” through New York State’s Consolidated Funding Application project, which awarded the project $400,000 for construction.
Kei Hayashi/BJH was part of a team that represented Fairway Markets in the public approvals process for the creation of a new production center and commissary in the Bronx. Kei’s role on the team was to undertake all of the real estate and cost-benefit analysis from Fairway’s perspective, as well as to provide narrative and analysis that assisted the City in making determinations for discretionary benefits to support the project.
BJH worked with Greenpoint Manufacturing and Design Center (GMDC), a non-profit industrial developer, in structuring a New York City Industrial Development Agency (NYC(DA) project agreement that afforded GMDC real property tax exemptions, as well as other tax incentives. The agreement was able to navigate the limitations NYCIDA has in assisting non-profits, yet preserve the project goals of providing high-quality, affordable industrial space to smaller urban manufacturers. With BJH’s assistance, GMDC established a new, for-profit entity to control the project, and negotiated front-loaded benefits to cover initial lease-up risk and other pre-completion cash flow shortfalls. The transaction also used New Markets Tax Credits as a funding source.
Kei Hayashi/BJH worked on an advisory team that assisted the developers of Liberty View with a Historic Tax Credit financing as well as an exploration into the possibility of New Markets Tax Credit Financing. The financing closed in 2013.
BJH worked with New York Proton Management, LLC (NYPM) on underwriting tax structures and determining optimal economic development tools to access in siting a proton therapy and research center in New York State. Proton therapy is a highly advanced form of radiation treatment that accurately targets tumors while minimizing damage to surrounding tissues. The new center is proposed to house four treatment rooms and will focus on development clinical protocols to provide worldwide leadership on the efficacy of proton therapy.