The Consulting Division of City One Real Estate and Financing Department specializes in helping companies access and secure numerous City and State incentives and economic development programs to help companies expand in and relocate to the 5 boroughs of New York City, as well as New Jersey, upstate New York, and Long Island.
Robert Morel, one of the founding principals of City One Real Estate, has had experience in NYC City Hall in the early 1980's, as well as worked with the Port Authority of New York & New Jersey, and the New York City Office of Economic Development. Mr. Morel has been able to parlay this experience and knowledge into assisting his clients secure many economic development programs include all of the following:
- ICIP/ICAP - The New York City Industrial and Commercial Incentive and Abatement program provides for significant property tax abatements, providing properties significant real estate tax relief for anywhere from 10 to 25 years, depending upon the property, the amount of renovation that occurs and the location of the building.
- New York City Industrial Development Agency - Industrial companies, warehousers, and distributors seeking to purchase a building in New York City or contemplating significant renovations can secure a 25 year land tax abatement of $500 per employee, plus a building tax freeze or stabilization of the building's assessed value prior to the sale. A mortgage recording tax waiver is also part of the package, in addition to sales tax exemptions.
- The New York City IDA provides incentives for not only the Straight Lease programs under the IIP (Industrial Incentive Program), but also under Tax Exempt Bond Financing Program.
- Relocation Employment Assistance Program (REAP)- This program incentivizes companies who relocate from Manhattan south of 96th Street or from outside the city to various specific sections of the outer boroughs and enables them to receive an annual tax credit against city business tax liability of up to $3,000 per eligible employee.
- Energy Cost Savings Program - This program provides certain eligible companies a reduction of up to 45% of the company's electric bill and 35% reduction of the gas bill (the transmission and distribution portion only).
- Small Business Financing Program - SBA 504 and SBA 7A Program - These financing programs provide eligible companies up to 90% financing to acquire real estate in conjunction with conventional lenders.
- See Financing & Consulting Services drop down for more details.
This is a small outline of some of the City and State economic development expertise provided by City One Real Estate. The Financing Department of City One Real Estate has helped over 300 companies secure all of these programs listed above and others as well.
Mr. Morel has over 25 years of experience assisting small businesses with these economic development incentive programs and has been prominently featured in Real Estate Weekly, Crain's New York Business and other periodicals (see Press Releases on this website).
Sample Case Studies of Projects Financed by City One’s Financing and Consulting Division
- Construction Financing
- 90% Real Estate Acquisition Financing
- Machinery Financing
- Refinancing of Existing Debt
- Securing Straight Lease Benefits
- Refinance and Cash Out
Construction Financing – City One assisted an owner/user in the fragrance industry secure a 90% SBA 504 financing package for the purpose of constructing a new office headquarters and warehouse. Project construction costs were approximately $2,000,000 and the company will also seek ICIP/ICAP Department of Finance tax abatements and energy cost savings program discounts.
Real Estate Acquisition – City One secured an ice cream manufacturer 90% financing, combining a conventional loan with an SBA loan program to help this company buy a building in Hackensack, New Jersey. The company is now producing fine ice cream and distributing it to its various retail and wholesale customers in the New York City metropolitan area.
Machinery Financing – City One structured a unique transaction to help a taco bakery acquire machinery financing with long term attractive rates. The owner/borrower their existing building to secure a mortgage with long term low interest rates and provide the collateral to acquire this state-of-the-art machinery for their manufacturing plant in the Jamaica section of Queens.
Refinancing – City One arranged, structured, and secured an 80% loan to value, long term real estate refinance for an owner/occupied property in Plainfield, NJ. This loan provided for significant cash out reimbursing the owner for renovations that occurred some 8 years earlier.
Acquisition – A pita manufacturing company utilized the services of City One to secure a 90% (504) loan to acquire a building for their use. The property was located in the Long Island City section of Queens and in conjunction with the 90% financing, City One structured a New York City IDA Straight Lease deal, that provides for a 25 year property tax abatement and property tax freeze.
Refinance – City One arranged a first mortgage and cash out to finance a shareholder buyout of a property located in the Bronx. This owner/occupied transaction was for $6,000,000.
Financing & IDA Straight Lease – City One structured and arranged two loans to secure a 90% loan to value financing, utilizing the SBA 504 program and a conventional bank. Simultaneously, the buyer took advantage of the New York City Industrial Development Agency’s Straight Lease program, providing the owner with a 25 year real estate tax freeze and property tax abatement for this real estate acquisition.