O’Donnell Group, business tax incentives, government grants, state loan programs, commercial development

Companies turn to The O’Donnell Group for a variety of needs. The case studies below highlight some examples - from finding suitable properties and government funding opportunities, to Tenant Representative success stories, to neighborhood revitalization.

Buyer Representation Case Studies

Client: Franklin Electric Company
Our Role: Buyer Representative
Why We Were Hired: To identify a suitable property for the relocation of Franklin’s headquarters and new distribution and trade counter, and represent Franklin in the purchase of this property.
How We Helped: Conducted a needs assessment, market analysis, property search, property inspection, investment analysis, and project funding strategy including government funding programs.
Results:

Successfully assisted Franklin in purchasing 10 Twosome Drive, in Moorestown, NJ — a 44,000-square-foot building with 8,000-square-feet of office space and 36,000-square-feet of warehouse space located on 6.72 acres, with the potential to construct an additional 51,000-square-feet of building space.
Obtained an NJ Business Employment Incentive Program grant of $424,000 to assist with project funding.

Project Update
The New Jersey Business & Industry Association (NJBIA) presented Franklin Electric Company with the “Good Neighbor Award” for their technologically advanced renovation of a formally vacant facility in Moorestown, NJ. The facility is now well utilized as the company’s headquarter offices and warehouse. The award is sponsored by both the New Jersey Business & Industry Association and New Jersey Magazine.
The O’Donnell Group played an integral part in helping Franklin Electric find the suitable new location in Moorestown and obtaining a Business Employment Incentive Program grant from New Jersey’s Economic Development Authority. The grant assisted with the renovation and also helped create approximately 49 more jobs in New Jersey.

Client: Vista Class A, LLC
Our Role: Buyer Representative, Investment and Property Manager
Why We Were Hired: To represent Vista in the purchase of a 66,000-square-foot office building, located at 1909 Route 70 in Cherry Hill, NJ, and to subsequently manage the leasing and capital improvements of this property.
How We Helped:

Completely renovated the property within 24 months—including the installation of a shared tenant high speed internet system and the upgrading of elevators, lobbies, bathrooms, lighting and mechanical systems.
Managed the increasing technology capabilities of each tenant.
Negotiated all new and renewing leases at the property.

Results:

Increased occupancy of 45% at purchase to 100% within 24 months.
Significantly increased property value, allowing Vista to sell to a property investor for a substantial profit within 36 months.

The Sustainable Fund, which provides low-interest loans of up to $250,000, assists companies wishing to improve the environmental quality of their operations. Preference for loans is given to firms that located in urban and town centers near existing infrastructure and mass transit.

The SBA 504 Loan Program is a long term financing tool created to promote long-term economic development within a community. The 504 program provides growing businesses with long term, fixed rate financing for major fixed assets such as land, buildings, and equipment. 504 loans are extended through Small Business Administration (SBA) approved companies called Certified Development Corporations (CDCs). In the State of New Jersey, two CDCs have been created to execute 504 loans. These are the New Jersey Business Finance Corporation and the Corporation For Business Assistance (a subsidiary of the New Jersey Economic Development Authority.) CDCs work with the SBA and private-sector lenders (i.e. Banks) to provide financing to small businesses.

7(a) loans are the most basic and most used type loan of SBA's business loan programs. The loan’s name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

All 7(a) loans are provided by lenders who are called participants because they participate with SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines.

7(a) loans are only available on a guaranty basis. This means they are provided by lenders who choose to structure their own loans by SBA's requirements and who apply and receive a guaranty from SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The lender and SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender or misrepresentation by the borrower.

Under the guaranty concept, commercial lenders make and administer the loans. The business applies to a lender for their financing. The lender decides if they will make the loan internally or if the application has some weaknesses which, in their opinion, will require an SBA guaranty if the loan is to be made. The guaranty which SBA provides is only available to the lender. It assures the lender that in the event the borrower does not repay their obligation and a payment default occurs, the Government will reimburse the lender for its loss, up to the percentage of SBA's guaranty. Under this program, the borrower remains obligated for the full amount due.

Tenant Representation Case Studies

Client: The Jo Skymer Lighting Company
Our Role: Tenant Representative
Why We Were Hired: To represent the company through an expansion from its Pennsauken, NJ, original showroom and warehouse.
How We Helped:

Partnered with the company president to evaluate population trends in southern New Jersey.
Managed the review of available sites.
Assisted in the negotiation of lease terms.

Results: The Jo Skymer Lighting Company was successfully re-located in an 8,000-square-foot end-cap unit in the Cardiff Plaza shopping center, located in Egg Harbor Township, NJ.

Incentive Advisory Case Studies

Client: New Jersey Boat-Builder’s Association
Our Role: Incentive Advisor
Why We Were Hired: To assist the association with the creation of a State-sponsored, low-interest loan program for its members.
How We Helped: Conducted an economic impact study of the industry, in partnership with the New Jersey Economics, and presented the study’s findings in a report to various state government officials and groups.
Results: Our economic impact study report helped to initiate a State loan program specifically for the NJ Boat-Builders use.

Development, Investment, and Property Management

Client: Virtua Health, Camden Campus
Our Role: Development and Investment Manager
Why we Were Hired: To help Virtua create a neighborhood revitalization and investment program.
How we Helped:

Negotiated the packaging of several parcels of land to enable the development of a Rite Aid Pharmacy, which served the needs of both neighborhood residents and the hospital.
Assisted the hospital community development arm secure State funding for the development of affordable housing units at Virtua’s Mt. Ephraim Boulevard Campus in Camden, NJ.

Results: The neighborhood surrounding the Virtua Health Camden Campus was significantly improved through the development of quality commercial and residential properties.

Completely renovated the property within 24 months—including the installation of a shared tenant high speed internet system and the upgrading of elevators, lobbies, bathrooms, and lighting and mechanical systems.
Managed the increasing technology capabilities of each tenant.
Negotiated all new and renewing leases at the property.

Results:

Increased occupancy of 45% at purchase to 100% within 24 months.
Significantly increased property value, allowing Vista to sell to a property investor for a substantial profit within 36 months.