Ferragon Builds Toll Processing Facility
The Gibraltar, MI, plant will become operational in late 2016.
Posted: October 12, 2015
BGL Real Estate Advisors (BGL; Cleveland, OH) is pleased to announce the closing of a complex capital structure for Ferragon Corporation (Cleveland, OH). The multi-phased financing will support improvements to create a state-of-the-art continuous annealing toll processing operation in Gibraltar, MI, that will become operational in late 2016. Once complete, the project will add approximately 100 new jobs for local residents and bring a largely vacant 550,000 sq ft industrial complex back into EPA compliant condition.
The $22.3 million financing consisted of (i) a $10 million building improvement loan, (ii) an $8.2 million Brownfield Tax Increment Financing (TIF) and job creation grant from the Michigan Economic Development Corporation and the Michigan Department of Environmental Quality, and (iii) $4.1 million for building and property acquisition. BGL was the exclusive real estate advisor to Ferragon in the transaction.
“BGL’s Real Estate team, under the leadership of Anthony Delfre, was instrumental in helping us formulate an action plan at the beginning of this complicated project, and more importantly, helping us navigate through all of the changes ultimately needed to bring it to fruition. Everyone we encountered at BGL was knowledgeable, professional, and on top of their game,” said Reed McGivney, the executive vice president of Ferragon.
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