Anheuser Busch Wholesale Distribution Facility
The project constructed a 164,000 square foot industrial wholesale and distribution facility in the Hunts Point peninsula, located in the South Bronx, New York City. The site is part of a comprehensive revitalization plan announced by the City of New York to spur economic growth and promote a sustainable community in the South Bronx. The site is also located within an Empowerment Zone, an SBA-designated HubZone, a New York State Empire Zone and a New York City Commercial Expansion Area. Total development costs are estimated at $65 million and completion is expected in mid-2008.
Enterprise's investment provided both a senior loan and equity to the project, totaling $20 million and using New Markets Tax Credits.
The Bronx is one of the poorest areas of New York City, with high rates of poverty and unemployment. In particular, the Hunts Point peninsula suffers from vacant and underutilized industrial lots and high unemployment. The Hunts Point Vision Plan (the Plan) outlines a strategy for helping the area reach its fullest potential as a sustainable, healthy and vibrant place to live and work. The Plan was put together by a community task force and is supported by the City of New York and numerous local community and economic development organizations.
One of the goals of the Plan is to provide increased employment opportunities by attracting more businesses and assisting local residents with training and job placement. Although the new facility is a replacement for an existing facility in another part of New York City, it allows over 300 permanent jobs to be retained in the city, as well as allow for potential expansion and the creation of more than 50 new permanent jobs. In addition, the project generated approximately 272 full-time temporary construction jobs. The developer invited Bronx-based businesses to participate on project bids first. The project also supported the environmental and quality of life aims of the Plan by building a LEED-certified building, providing public waterfront access in the form of a 30-foot wide greenway along the Bronx River and using alternative energy trucks.
The sponsor/developer for the project is Anheuser Busch Distributors of New York, Inc., a wholly-owned subsidiary of Anheuser Busch Companies, Inc. This is the first New Markets Tax Credit development for the sponsor.
Bank of America Community Development Corporation (BACDC) provided a $17.3 million loan and $2.7 million in equity for the investment through a partnership with Enterprise, which provided $20 million of New Markets Tax Credits to the transaction. Additional financing of approximately $25 million was provided by the Investor using its allocation of New Markets Tax Credits. BACDC, a wholly-owned subsidiary of Bank of America, N.A., conducts real estate development and investment in low- and moderate-income communities across the nation. Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.