BJH served as the financial analyst for the team selected by Empire State Development to assess the redevelopment potential of an 8-acre State-owned parcel of land in downtown Albany. The State sought guidance on a strategy that would encourage private sector interest in purchasing and developing the site despite challenging market conditions. Based on interviews with key stakeholders and a review of real estate market trends, BJH advised the team on two potential redevelopment scenarios that would leverage demand for housing in the area and introduce new commercial and open space amenities. Moreover, BJH prepared a phasing schedule for redevelopment that reflected market demand and absorption projections. This work will inform Empire State Development’s strategy to redevelop the property. The final report can be viewed here.
BJH was on a team with an architect, engineer, and cost estimator hired by NYCEDC to study and propose redevelopment scenarios at La Marqueta to support its mission of establishing a vibrant multi-tenant food and retail marketplace in East Harlem. BJH created a pro forma to compare the financial feasibility of the team’s three redevelopment scenarios. In addition, BJH utilized projected rents and assessed operating costs at similar multi-tenant industrial properties with varying operating structures to demonstrate opportunities to reduce expenses and increase the projected net operating income following redevelopment.
The League Education and Treatment Center is a non-profit in Brooklyn that provides services to clients with psychiatric and developmental disabilities. The League Center asked BJH to review its current operations and real estate holdings to identify opportunities to maximize value and reduce costs. BJH engaged an architect to assist in the facilities review and to create program and development scenarios. BJH prepared a report that outlined to League Center leadership options that would better align its real estate holdings with its program needs and financial capacity.
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.
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.
BJH is advising Civic Hall on the creation of an 80,000 square foot community facility, including a Tech Training Center, at the site of the former P.C. Richard’s store. The location, on 14th Street in Manhattan, is in Community Board 3 and well positioned to serve a broad array of entrepreneurs, students, local residents, and businesses that are becoming more reliant on digital skills to shape an increasingly collaborative and civic minded workforce. The project will contain a digital skills learning center with conference and meeting space as well as educational and networking facilities. Training will be provided through partners such as Per Scholas, CUNY, Mouse.org and FedCap. BJH is advising Civic Hall on public-private partnership structures and business model analysis to ensure the financial sustainability of the project.
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 worked with New Jersey based planning and development firm Topology on four separate residential development projects in Essex, Union, and Morris counties in New Jersey. BJH used cash flow models to perform sensitivity analyses on market assumptions and Payment In Lieu of Taxes (PILOT) structures. BJH used these analyses to examine the financial feasibility from the developers’ perspectives while also considering the impact on the municipalities’ character, density and future tax revenues.
BJH, a registered Municipal Advisor with the Securities and Exchange Commission, assisted Omnicap, a nationally recognized financial and investment advisor, with structuring, market research, and municipal advisory services related to the issuance of solar financing green revenue bonds backed by consumer loans. BJH surveyed the market for similar products and reported on their rates, structures, and collateral pools.
For the Village of South Nyack Economic Sustainability Study, BJH provided real estate analysis as part of a consultant team. The team evaluated the potential for the redevelopment of land over and surrounding Exit 10 on the New York State Thruway. As part of the study, BJH prepared a high-level financial feasibility for the preferred redevelopment scenario, and made recommendations on next steps toward implementation.
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.
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.
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.
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.
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.
BJH Advisors undertook financial feasibility analysis as a part of a multidisciplinary team of consultants selected by the New York City Economic Development Corporation (EDC) to develop recommendations to foster the growth of the life sciences industry in New York City. BJH’s role included identifying potential geographic areas for development of a life sciences complex and financial feasibility analysis for real estate investment based on the site conditions, market trends, and the needs of potential life sciences users.
The New York State Regional Food Hub Task Force, comprised of the Office of Governor Cuomo, the New York City Mayor’s Office, Empire State Development, New York State Department of Agriculture, and the New York City Economic Development Corporation, was established to address the challenges associated with connecting upstate farms to the New York City market. The Task Force hired a team of consultants to analyze the potential for regional food hubs that focus on improving distribution channels for small and mid-sized farms and advancing equity along the food supply chain. BJH Advisors provided real estate analysis to help the Task Force determine whether a food hub is financially feasible in the outer boroughs of New York City. BJH prepared a gap analysis based on typical food hub space and price requirements, market rents, and available subsidies and incentives, and conducted sensitivities to test alternate scenarios. The analysis estimated the subsidy a Food Hub may require to successfully operate in New York City.
BJH was the project manager and prime consultant for the State of New York, managing a multi-disciplinary team in the study of existing conditions, the creation of redevelopment scenarios, and the evaluation of land use, environmental and financial feasibility of those scenarios for the Creedmoor Psychiatric Hospital Campus in eastern Queens. The surplus property under evaluation exceeds 50 acres on a campus that will continue to have medical, social service, and psychiatric uses. The project team conducted community outreach and a detailed market analysis in order to formulate three potential redevelopment scenarios. The three redevelopment scenarios focused on three distinct priorities: growing the existing residential neighborhood with new housing that reflects the scale of the surrounding community, maximizing affordable housing, and creating a mixed-use community that maximizes job opportunities. BJH then tested the financial feasibility of each scenario and coordinated a team that developed a physical model for each scenario and explored the infrastructure and environmental feasibility of each scenario.
In coordination with Mayor de Blasio’s ten-year affordable housing plan, the Department of Housing Preservation and Development, the Department of City Planning, and the Housing Development Corporation undertook a study of the effects of various a mandatory inclusionary housing (MIH) program structures in various neighborhoods. BJH was the key New York City subconsultant to the prime consultant – BAE Urban Economics – a California based specialist in MIH programming. The consultants examined structures requiring residential developments in the targeted areas to include a certain percent of affordable units. Analysis included the creation of an index for each neighborhood in the New York based on market conditions, a thorough investigation of development costs for a variety of multi-family housing prototypes, and the creation of a dynamic pro forma that included variability across markets and tax policy outcomes.
BJH Advisors provided financial analysis expertise for the Town of Morristown, New Jersey in negotiation with the selected developer for Phase II of the Speedwell Avenue Redevelopment Plan. The redevelopment plan called for construction of multi-family housing, as well as streetscape improvements along a key corridor in the town. BJH Advisors applied the developer’s program, financing, income, and expense assumptions to a cash flow analysis to estimate the developer’s return. BJH Advisors also conducted sensitivity analysis to test the impact on developer return of variables such as percent of affordable housing units, land sale price, and the rate of the payment in lieu of taxes (PILOT). The analysis allowed the Town of Morristown to negotiate a mutually-beneficial agreement with the developer.