12C — February 8 - 21, 2019 — Pennsylvania — M id A tlantic
Real Estate Journal
www.marejournal.com
P ennsylvania
HILADELPHIA, PA — Par Funding has announced the suc- Quantum Builders and take on government projects Par Funding helps a service disabled veteran- owned company expand their business P
release. The Indiana-Armstrong Builder’s Association is work- ing with the construction management firm, Blue Rock, to source local and regional “We are pleased to add an experienced commercial real estate professional to our team to help us with our leasing and development activities in the market,” said Jeff Palmquist , senior vice president of Duke Funding was able to help his company flourish by draw- ing up a factoring agreement for Quantum Builders that has provided the necessary funds that Quantum Build- ers needed in order to expand their business and get new government contracts. Factoring Agreement with Quantum Builders Par Funding works with small- and medium-sized busi- nesses in order to help them with short-term liquidity and long-term capital solutions. Businesses often find them- selves in tough situations and need additional assistance to Acquisition • Business Acquisition and Expansion • Debt Refinancing • Soft Costs Eligible businesses require- ments: • Organized for-profit • Do business in the United States • Occupy at least 51% of the space to be bought • Business tangible net worth cannot exceed $15 mil- lion • Average net income of $5 million or less after federal income taxes for the preceding two years prior to application The Northeastern Penn- sylvania Alliance Busi- ness Finance Corporation (NEPA BFC) has obtained site-wide certification as a Certified Development Com- pany which allows NEPA BFC to conduct SBA 504 lending state-wide in Pennsylvania. folio with a goal of growing it through new development and investment opportunities in the market.
contractors and suppliers for the anticipated 600 jobs dur- ing construction. Permanent job opportunities are expected to be available 2nd quarter 2019. Henderson comes to Duke Realty after four years as senior vice president with Nappen & Associates, a privately held Philadelphia-based industrial real estate development firm. improve their financial posi- tion and cash flows. Without such assistance, many com- panies are forced to close shop and lay people off. Par Fund- ing also provides financing solutions for companies that aspire to grow and expand their customer base. Service Disabled Veteran- owned company, Quantum Builders, is another example of the many businesses that Par Funding has helped over the years. Par Funding devel- oped a factoring agreement for Quantum Builders, under which Par Funding provided funds for the company in The Northeastern Penn- sylvania Alliance also has internal loan programs with low interest rates for projects that do not qualify for SBA 504 Programs or projects that would be better suited for other lending programs. For more in- formation on the internal loan programs, please contact Dave Nat at (570) 655-5581, ext. 243 or dnat@nepa-alliance.org. The NEPA Alliance, a re- gional community and eco- nomic development agency, serves the seven counties of Northeastern Pennsylvania including Carbon, Lackawa- nna, Luzerne, Monroe, Pike, Schuylkill and Wayne. NEPA Alliance services include Busi- ness Financing, Government Contracting Assistance, In- ternational Trade Assistance, Non Profit Assistance, Trans- portation Planning, Research and Information, and Local Government Services. Realty’s Northeast Region. “Scott has a proven record of success in commercial real es- tate and will be a real asset to our operations.”
exchange for its accounts re- ceivable. Using these finances, Quantum Builders was able to take on many government projects that allowed it to ex- pand and flourish. Victor Milbourne, owner of Quantum Builders and a Service Disabled Veteran, said “Quantum Builders grew by 30% in 2018 with the as- sistance of Par Funding. If it wasn’t for Par Funding, I would have never been able to expand my business.” A Note of Thanks Joseph Laforte , a team leader at Par Funding, ex- SC: Opportunity Zones rely on a self-certification process for creating a fund, which means that investors have lots of autonomy. This also means that economic development organizations and municipali- ties may not always be aware of investments being made in their zones. Because the zones are distressed areas by definition, there is a higher risk that outside investment could change neighborhoods and business districts with- out any local engagement or controls. There are potential controls that could help guide development in Opportunity Zones—such as zoning over- lays—but these tools are not yet well developed, especially in smaller cities. Finally, there is the risk for disappointment. Opportunity Zones absolutely provide an- other tool to attract invest- ment, but there is a risk in promoting them as transfor- mational and raising the hopes of residents and developers that untapped capital will begin flowing into the census tracts that need it the most. While there is reason to be hopeful, the reality of match- ing qualified investors to viable projects may narrow the scope and impact of the tax break. The Bottom Line Experts predict that after an initial wave of Opportunity Zone fund offerings in early 2019, there may be a pause that coincides with the issu- ance of additional regulations during which market partici- pants will evaluate fund and continued from page 4C Omni: Are there any draw- backs to the Opportunity Zone program?
pressed his gratitude to Victor Milbourne and other veterans and soldiers for their service to the country and all its citi- zens. He stated, “It is my great honor to help Victor Milbourne grow and expand his business. It is because of the sacrifices and courage of heroes like him that you and I can enjoy our freedoms and exercise our rights. I would like to extend my heartfelt gratitude to vet- erans and men and women in uniform for their service for this great nation. Par Funding is proud to be associated with one such hero.” project structures. After that, barring the rise of general economic headwinds, it should be full steam ahead for Op- portunity Zone funds moving forward. From a real estate perspec- tive, Opportunity Zone proj- ects need to be viewed as development projects because the requirement is to create new property or substantially improve property. To reem- phasize Silas Chamberlin’s point, there is surely reason to be hopeful that Opportunity Zones will flow capital into census tracts that need it the most. But we must remain cautiously optimistic about how quickly and substantially this capital will come about. Much like anything related to real estate, and especially real estate investment, most out- comes remain at the mercy of the market and ever-changing government regulations. Silas Chamberlin, PhD is the vice president, Eco- nomic & Community De- velopment at York County Economic Alliance. Prior to joining YCEA in fall of 2018, he served as CEO of Downtown Inc. Chamber- lin has also served as execu- tive director of the Schuylkill River National Heritage Area, an organization promoting economic revitalization in five counties of southeastern Pennsylvania. And he has held leadership positions in the non-profit sector and state government. Throughout his career, Chamberlin has fo- cused on helping communities leverage their unique assets to create opportunities for economic development and a higher-quality of life.
cess of their project with Qu a n t um Bu i l de r s , a registered Service Dis- ab l ed Vet - eran-owned c o m p a n y . Q u a n t u m
Joseph Laforte
Builders is owned by Victor Milbourne who is a Ser- vice Disabled Veteran, Victor proudly served our country as a Forward Observer and as a Combat Engineer. Par
How Opportunity Zones . . .
The NEPA Alliance announces 25-Year Debenture SBA 504 funding rate is 4.99%
PITTSTON, PA —The SBA 504 Program is a small busi- ness lending program that is guaranteed by the U.S. Small Business Administration. The program provides below mar- ket financing for small busi- nesses that otherwise would not be able to obtain it. A bank or other lender finances 50% of the project cost and takes a first lien position on the assets financed. The SBA 504 loan finances 40% of the project cost up to $5.5 million and takes a second lien position. The bor- rower then contributes a down payment of as little as 10%. The term of the loan can be up to 25-years, guaranteed by SBA with a fixed interest rate. Eligible project costs through SBA 504 include: • Land and Building Acqui- sition • Construction and Renova- tion • Machinery and Equipment CONSHOHOCKEN, PA — The Northeast Region office of Duke Realty Corporation (Duke Realty) has hired Scott Henderson as vice president of leasing and development for Pennsylvania. Henderson, a 17-year commercial real estate veteran, will oversee the com- pany’s 6.1-million-square-foot Pennsylvania industrial port-
Henderson joins Duke Realty as VP, leasing & development
continued from page 8C Urban Outfitters announces Indiana Fulfillment Center
Ziel said could grow to nearly 1 million s/f, began in October and the fulfillment center is expected to open in 3rd quar- ter 2019, according to a news
Made with FlippingBook - Online Brochure Maker