BJH was engaged by the New York Building Congress to develop a report providing an overview of the tourism and culture sectors in New York City, the vital role that the construction and design industries play in these sectors, and the emerging trends related to construction. The report surveys recent, current and planned capital projects that support tourism and culture in New York and analyzes their economic impact. Finally, the report addresses the most significant challenges hindering construction in this sector and presents recommendations for ensuring that New York continues to develop the infrastructure that is needed to remain a top global destination.
In late 2017 and early 2018, BJH undertook market research and analysis for the Downtown Brooklyn Partnership (DBP), examining demographic, labor, business, real estate and quality of life data to create a comprehensive understanding of the DBP’s catchment areas, and how they have evolved over time. As a part of its research, BJH interviewed DBP members and the locally active brokerage community. BJH created a customized visualization tool from the data that DBP can use to create specific graphs and charts in a wide variety of publications and presentations or to quickly disseminate specific information with shareholders as needed.
BJH worked with Plan A Architecture + Design on the Empire State College (Empire) Facilities Master Plan update. BJH performed a multi-site market analysis to rationalize Empire’s real estate portfolio. BJH analyzed the rent and lease terms for each property in Empire’s portfolio and compared them to the market rates for each location. BJH also provided Empire with land and office building comparable sales, allowing Empire to assess options for building new facilities on vacant land or purchasing existing buildings in local markets.
BJH worked as part of a team led by VHB to analyze the City’s regional freight system’s capacity to handle future trade flows in an economically and environmentally feasible manner. BJH provided real estate analysis to support the consultant team’s recommendations by researching supply and demand for freight and other industrial space required by different modes (maritime, rail, air, and truck) in the five borough area and neighboring counties in New Jersey and Connecticut. BJH’s work helped to shape goals for future investments in this critical infrastructure. The FreightNYC initiative is currently set to invest up to $100 million to create new jobs, invest in maritime and rail solutions, modernize distribution facilities, and support an environmentally sustainable freight network.
BJH advised Vista Foods Exchange on its submission to the New York City Economic Development Corporation for the development rights to a 7.5 acre site in the Hunts Point section of the Bronx. BJH prepared an operating and real estate pro-forma for the development of a food distribution center jointly operated by Vista Foods Exchange and S Foods Inc. BJH also prepared an economic development narrative and performed an analysis of the economic impacts that would result from the development.
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.
Kei Hayashi and Maggie Haight recently passed their Series 50: Municipal Advisor Representative Qualification Examination. Under Dodd Frank, this allows BJH Advisors to engage in municipal advisory activities.
BJH is a registered municipal advisor with the Municipal Securities Rulemaking Board. MSRB rules govern the conduct of regulated entities in the areas of fair dealing, uniform practice, professional qualification, market transparency, and administration.
BJH is currently undertaking a series of tax and payment-in-lieu-of-tax or PILOT analyses for New York State public clients for large-scale infrastructure projects. BJH is responsible for constructing PILOT models that include full-tax runs including as-of-right tax policy (e.g. 421-a), as well as sensitivities with discretionary tax policy built-in, including the Industrial and Commercial Abatement Program and Hudson Yards Uniform Tax Exemption Policy programming. The tax/PILOT analysis is meant to feed into full development pro formas, as well as to provide the basis for better understanding debt capacity and funding streams that may be used by the public entities to pay for infrastructure and other project related elements.
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, working with VHB and BAE, prepared a market report identifying the current trends in the New York City hotel market. The report was used to inform New York City Department of City Planning’s proposal for a Special Permit for hotel development in light manufacturing districts in New York City. The report presented an overview of the hotel industry in the City over the past decade, as well as current and projected future conditions. The report also included comprehensive analyses of trends related to hotel development patterns, demand drivers, occupancy and revenue and the projected development pipeline for new hotel construction and delivery, both in manufacturing areas and in the City overall.
BJH was engaged by Design Trust for Public Space to assist with analysis for its Future Culture: Connecting Staten Island’s Waterfront project, which aims to provide a set of recommendations to strengthen culture and enhance the waterfront on Staten Island’s rapidly developing North Shore. BJH conducted an economic impact analysis of the arts and cultural sector on the North Shore. The analysis included direct, indirect, and induced economic impacts driven by a broad cross section of organizations contributing to culture in the area including arts and cultural organizations, community organizations engaged in arts and cultural activities, maritime businesses in connection to the area’s heritage as a maritime hub, individual artists, recreational spaces, and independently owned food businesses on Staten Island’s North Shore. The analysis examined the impact of these sectors on the economies of both Staten Island and New York City. BJH also conducted a real estate market analysis to compare historic supply and demand for the retail, office, and industrial markets on the North Shore and Staten Island as a whole.
BJH was engaged by NYU Tandon School of Engineering to estimate the economic impact of its Future Labs program since its inception in 2009. Future Labs is comprised of the Urban, Data, Digital, and Veteran Future Labs, each of which incubates startup companies by providing them with targeted guidance, expertise, resources, and a community of similar businesses. The analysis estimated the direct, indirect, and induced jobs, wages, and economic output generated by the Future Labs program.
BJH served as the economic and real estate analyst for the team selected by the New York City Department of Cultural Affairs to prepare CreateNYC, the first ever cultural plan for the City of New York. BJH supported the team in its extensive community engagement process and conducted a literature review focused on sectoral analysis, labor market analysis, and social impact. BJH also prepared a comprehensive economic impact analysis of the cultural sector in New York City, which identified the total number of workers employed in cultural jobs in New York City, the total wages, and the total output associated with cultural sector. BJH projected the indirect and induced impact of the cultural sector in New York City. This work laid the foundation for the several recommendations put forth in the plan focused on supporting job growth and interagency coordination, as well as the recommendation for increased funding to support cultural organizations as engines of economic growth in New York City. The final plan was announced in July 2017 and can be downloaded here: http://createnyc.org/en/home/.
BJH Advisors (BJH) worked with a food industry expert and planning and design firm to analyze the feasibility of, and develop a preliminary concept for a culinary incubator in the City of Amsterdam, New York and the Montgomery County Business Development Center. The team outlined a concept for a non-profit incubator in the Southside neighborhood that will respond to community needs, create jobs, and attract locals and visitors. The incubator concept includes two kitchens, a food hall, a retail shop, a multi-purpose event space, an outdoor farmers’ market, a teaching garden, and a seating area. BJH conducted analyses of demographic, economic, and real estate market conditions; retail leakage for selected industries; and benchmark case studies for similar tourism/destination-based demand food concepts.
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 was the project manager and prime consultant for the State of New York, managing a multi-disciplinary team that developed a Downtown Revitalization Strategic Action Plan for the Village of Westbury in Nassau County, Long Island. The Downtown Revitalization Initiative is a $100 million initiative of Governor Andrew Cuomo which provided 10 towns throughout New York State with $10 million in downtown revitalization funds. Westbury, a 2.4 square mile Incorporated Village in Nassau County along the Long Island Rail Road, was selected for the initiative by the Long Island Regional Economic Development Council. BJH led a team in coordinating a committee of local stakeholders, executing public engagement events, studying existing conditions, and identifying projects to help bring about the revitalization of the downtown. Once projects were identified, BJH and its team prepared an implementation plan that identified the cost of the project, regulatory processes, and partners to implement each of the projects. Projects included a rezoning that would promote transit-oriented development and increased residential density near the train station; a commercial attraction program that would provide grants to new, targeted retailers for fit out; a comprehensive streetscape improvement plan that included street plantings, benches, new lighting, among other streetscape elements; and a redesign of the key intersection that connects the Long Island Rail Road station to the downtown. The funded projects are expected to be implemented between 2017 and 2020. The final plan can be found here.
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 completed a series of benefit cost analyses regarding the implementation of an integrated flood protection solution in Red Hook, Brooklyn. The proposed flood protection could stretch up to three miles around the waterfront neighborhood’s perimeter, providing protection to the thousands of residents that were severely affected by Super Storm Sandy. The analysis considered avoided damages from property structures and contents, as well as displacement, loss of work, and public service losses. It also quantified other social and economic benefits of the project. BJH then calculated the overall benefit cost ratios per FEMA methodology for multiple flood protection alignments to be submitted as part of the City’s HMGP application. A brochure summarizing the findings of the study can be viewed here.