Long Island, New York has a thriving commercial and industrial real estate market. Many properties are purchased and renovated to create new business in a variety of fields. Telecommunications, health care, senior housing, and energy are just a few of the many examples. For companies and individuals who are planning such a project, using Industrial Development Agencies Financing may be the best way to get the funds needed.
Advantages of IDA Transactions
There are many benefits to funding your project using IDA transactions Long Island. IDAs are a group of New York State agencies whose purpose is to provide assistance, encouragement, and help promote companies who seek to purchase, improve, and build facilities for industrial, commercial, manufacturing, and recreational facilities. They each operate in a specific jurisdiction and help companies in their areas.
IDAs have been established all over Long Island in both Nassau and Suffolk Counties in towns such as Babylon, Brookhaven, Hempstead, and Islip. They can save prospective developers thousands of dollars. This is done by the IDA issuing tax-exempt bonds to institutional investors. The money is raised to finance the project and the IDA holds the title. The responsibility for the debt falls to the company that made the acquisition or renovation. It may enter into a mortgage or lease agreement with the IDA to pay off the debt. The income earned by the investors on the bonds is exempt from federal, state, and municipal taxes because IDAs are government agencies. Since there are no taxes, IDAs can offer lower interest rates on the bonds. This method of financing benefits everyone involved including the people of Long Island.
If you are planning to acquire a business property on Long Island for acquisition, construction, or renovation, consider financing using an IDA transaction. The money saved can be very helpful in getting your company off the ground.
Gabriel