Detailed Case Studies
SBA and IDA ConsultingCity One's Financing and Consulting Division structured and expedited the acquisition of a 95,000 sq. ft. building on a 36,000 sq. ft. plot in Long Island City, Queens. Mr. Robert Morel arranged 90% SBA 504 and conventional financing in conjunction with the New York City Industrial Development Agency "straight lease" incentive package. The IDA approval occurred within 2 months of the signing of the contract of sale. The financing which totaled over $10 million was fully approved in approximately 3 months and consisted of a 50% first mortgage through a large, well-known lender. The SBA portion of the loan consisted of 40% of the acquisition price, and was arranged through the New York Business Development Corporation a n SBA lender with whom Mr. Morel has much experience. The IDA savings over the term of the lease, by virtue of a 25 year property tax freeze and abatement, will exceed $2 million. The company will also be receiving energy discounts for more than 10 years.
IDA, Financing, ICAP, ECSP + BIR ConsultingThe Financing Division of City One structured and arranged the long term financing for the construction of a 10,000 sq. ft. manufacturing facility in Brooklyn, New York. The proceeds for this loan were arranged by the refinance of an existing mortgage on another property owned by this manufacturer which had previously received a New York City Industrial Development Agency benefits package also arranged by Mr. Morel. This IDA benefit was not disturbed by this refinancing, and the company will continue to receive significant payment- in- lieu- of tax ( PILOT) savings for another 12 years. This structure enabled the construction loan to be free of all the typical banking construction constraints, draw-downs and extra filing and construction management expenses. ICAP property tax abatement and exemption is pending for this new 10,000 square-foot addition in addition to a 12-year ECSP and BIR electricity discount.
Recession Proof FinancingCity One arranged and structured the long term financing of the acquisition of a small building in Brooklyn for a bakery to relocate and expand their commercial operations. The building will facilitate the company's expansion into the retail trade. Due to the impact of the Recession and the finances of this commercial bakery, City One was required to negotiate with and approach a number of lenders before a commitment was issued.
IDA Straight Lease Incentives ConsultingIn 2001, City One arranged the acquisition of a 25,000 sq ft. building using tax exempt bonds for a manufacturing company. In 2011, the same manufacturer approached Mr. Morel to assist them on their next expansion. The tax exempt bonds needed to be refinanced, the existing IDA program needed to be maintained, and an adjacent property needed to be acquired and financed. All was accomplished, with numerous twists and turns, and in 2013 an adjacent 10,000 sq ft. property was acquired by the manufacturer, utilizing a new 25 year IDA straight lease incentive package. The IDA structure provides for sales tax benefits on the "bricks and sticks" used during the construction, a mortgage recording tax waiver, and a 25 year PILOT real estate tax freeze. Energy discounts will be forthcoming when the demolition and reconstruction of a modern factory building is completed.
Baco Bolts IDA Development Benefits
Since 2001, City One Associates has assisted Baco Bolts expand several times buying several industrial real estate properties in the South Bronx and taking advantage of 25 year IDA real estate abatements and reductions, energy reductions, and other city economic development benefits. Recently, in 2013, City One structured the re-financing of an existing property and additionally, the construction financing for a new factory the company is building.