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170 Michael Drive, Syosset

Stark Carpet, which specializes in high-end carpets, rugs and textiles, has leased 17,500 square feet at 170 Michael Drive in Syosset. The company is relocating from a 5,000-square-foot space nearby. Jeffrey Jurick and Jeff Schwartzberg of Woodbury-based Premier Commercial Real Estate represented the tenant and the landlord, Taub Development, in the lease transaction.

135 Fell Court, Hauppauge

Vicon Industries, a designer, manufacturer and marketer of video systems and components used for security, surveillance and safety purposes, has leased a 30,185-square-foot building at 135 Fell Court in Hauppauge. The company is relocating from Edgewood, Jack O’Connor and Robert Polito of Newmark Grubb Knight Frank represented the tenant and Harry Stavro was the in-house representative for landlord Rechler Equity Partners in the lease negotiations.

170 Wilbur Place, Bohemia

Bradley Marketing Group has leased 15,000 square feet at 170 Wilbur Place in Bohemia. The company, which specializes in websites, promotional products, printing, warehousing and creative design, is relocating from 135 Fell Court in Hauppauge, Richard Cohen of Ashlind Properties represented the tenant and Harry Stavro was in-house representative for landlord Rechler Equity Partners in the lease transaction.

999 Stewart Ave., Bethpage

Pro Unlimited, a workforce management service provider, has renewed its lease for 10,643 square feet at 999 Stewart Ave. in Bethpage. Pro, based in Boca Raton, Fla., has six offices worldwide, with Bethpage as the company’s Northeast headquarters. Ralph Guiffre and Robert Seidenberg of CBRE represented the tenant and Wachtler Knopf Equities represented landlord Sterling Equities in the lease renewal.

65 Knickerbocker Ave., Bohemia

TJK Properties has bought a 17,000-square-foot industrial building at 65 Knickerbocker Ave. in Bohemia for $1.million. Michael Zere of Zere Real Estate Services represented the buyer and the seller, DIC Corp., in the sales transaction.

1419 Osborne Ave., Riverhead

Eastern Baseball League has leased 2,150 square feet of retail space at 1419 Osborne Ave. in Riverhead. Kevin Welsh of Zere Real Estate Services represented the tenant and Dennis McCoy of NAI Long Island represented the landlord, Perusso, in the lease negotiations.

165 and 195 Froehlich Farm Blvd., Woodbury

Leon Chiropractic Method and Health Solutions leased 1,564 square feet at 195 Froehlich Farm Blvd. in Woodbury and Dr. Karen Schwartz, an endocrinologist, leased 1,937 square feet nearby at 165 Froehlich Farm Blvd. Jeff Jurick of Premier Commercial Real Estate represented the tenants and Carlton Wenz was the in-house representative for landlord RXR Realty in the lease transactions.

What was the best thing that happened to you or your firm in 2014?

As a new firm, founded in October 2013, we have proudly begun to build a solid foundation and reputation as one of the top commercial real estate brokerage and consulting firms on Long Island.

And as one of the “easiest to do business with.”

What was your most notable project, deal, transaction or personal achievement in 2014?

The establishment of Premier Commercial Real Estate and our Website to assist our customers and fellow “Brokerage Partners”, in all aspects of our profession; whether Tenants, Brokers, Owners or purchasers. We believe, more than anything else, “Timing” is the most important and critical dynamic in Commercial Real Estate. And along that line, we are confident that our “Timing” is perfect for creating a unique company that has the skills, talent and professionalism to satisfy todays participants.

What are you looking forward to accomplishing in 2015?

Building upon our recent and substantial successes. We are a highly skilled and experienced, professional organization prepared to support the most complex challenges in a simple and direct fashion.

What are some of your real estate predictions for 2015?

2015 is expected to be another active year for both purchases and leases. We expect interest rates will probably rise a bit, which should act as an additional catalyst for continued strong demand to purchase buildings. In other words, we expect even stronger demand from any purchasers who have been “watching from, and waiting, on the sidelines” as they will realize that continuing to wait may not be in their best interests as rates begin to rise. An “interesting dynamic” that we feel, is likely to occur in the upcoming year. Additionally, we believe strong leasing demand will result in greater challenges for Tenants who will seek our services to assist them in securing space with the greatest value to support their business requirements.

 The New York Real Estate Journal recently sat down with Jeff Jurick, director at Premier Commercial Real Estate, for a question and answer session.

Q. What motivated you to make a professional career change and enter the field of real estate?

A. While building our family business, Fala Direct Marketing, we made the decision to invest in real estate that would house our growing business. During the 80s and 90s, we made investments in our business and real estate which created long-term value. I managed our real estate portfolio as part of our day-to-day business, gaining insight into what matters most to other real estate investors. Since selling our businesses in 2005, I’ve continued to consult in both marketing, while managing our holdings in Melville, NY. During 2008 and 2009, I oversaw the renovation of 80,000 s/f for a new tenant in one of our properties. I enjoyed the experience and it prompted me to consider learning more about real estate and pursuing it as a career.

Q. As the president &CEO of one of the nation’s largest direct mail companies, what types of properties were you managing?

A. Our properties included commercial and industrial space ranging from 10,000 to 150,000 s/f. I worked with the towns that provided favorable incentives for labor programs, as well as sales tax savings on our yearly capital investments in technology and equipment, which were well in the high seven figure range. Suffolk County assisted us with training programs and incentives for hiring and training. At our peak, we had 700 employees. Competition for skilled labor was fierce, so our property selections were based on where we could access the best labor pool.

Q. How does your experience as a president & CEO of a large national organization benefit your real estate clients?

A. My experience leading a multi-office, national organization exposed me to many of their needs. From site identification, production planning, process flow, office and warehouse layouts, to working with the municipalities and utilities, I was intimately involved in the same issues and responsibilities many corporate real estate officers and C-level executives face. One of the most rewarding and highly visible projects I worked on was the partnership between our company, New York State and the Long Island Power Authority (LIPA) in the development of the largest solar system on Long Island – a 1.1 megawatt system which is still up and running on two of our sites today and which saves over 200,000 kHz per site. We saw the clean energy and ability to produce 25% of our own power as a win-win for everyone, and agreed to participate in the program which was funded by our company and the New York State Energy Department under then Governor Pataki’s administration.

Q. Do you believe your former experience gives you a competitive advantage?

A. There’s no doubt that, with 35 years of experience, overseeing four operating business units, I gained extensive knowledge and insight into manufacturing, warehousing, distribution, quality initiatives and much more, allowing me to quickly understand their operations and facility requirements. On the real estate side, I also benefited from building good relationships with other property owners, developers, brokers, as well as a broader network of professionals, all of whom have helped me to continue to succeed in real estate. I learned that surrounding yourself by the right team members is the key to success. I am confident that I have done that here at Premier and through my many relationships.

Q. You were courted by several real estate firms. What made you join Premier?

A. I’ve worked with managing principal Jason Miller since 2005 on projects for our properties. We often talked about starting a new firm some day. Miller, who I believe is one of the best hunters for properties and tenants, introduced me to managing principal Jeff Schwartzberg. When I met Schwartzberg, it was like meeting a “Pro’s Pro.” He listens, asks the right questions and helps me to develop the best course of action for our clients’ needs. He has taught me how to best quickly assess a client’s needs. Since joining the firm in November, a day hasn’t gone by where I haven’t learned something new.

Q. What’s one of the best lessons you’ve learned?

A. I’ve been fortunate to have worked with some of the area’s top brokers on several real estate transactions. They taught me a lot; most importantly, ask the right questions, listen well, plant a new seed every day and have patience.

Q. Since joining Premier, what have been some of the highlights?

A. Among the highlights was securing my first exclusive representation, which came through a friend. Dealing with friends could put more pressure on you, but I turned that into energy to find the right tenants for this particular site. A few months after signing the exclusive agreement, I placed my first leasing tenant of over 17,000 s/f to a long term deal. That was my major highlight to date and I hope many more to follow.

Q. Are you focusing on any particular types of properties and/or target markets?

A. My primary focus has been on industrial properties for sale or lease, medical project development, medical offices, and site location representation.

Q. You are known for being very active in the community. How are you leveraging your community involvement in your real estate career?

A. My wife, Lisa and I share our family’s tradition and role in giving back to the community. Lisa works on projects for The Ronald McDonald House of Long Island and I am still very active as a Trustee for North Shore-LIJ Health System. It’s been an honor and privilege to sit on the NSLIJ board and learn from one of the most talented businessmen in healthcare, Michael Dowling – which I apply in my real estate career, especially when serving physician groups. I am also still active in Children’s Medical Fund of New York (CMF), for which I served as chairman from 1980 to 2003. Through CMF, I have a tremendous network of prominent business leaders. As a member of the Syracuse School of Management Advisory Board, I am able to remain on the leading-edge of new business trends and developments, which gives me additional insight into the needs of the marketplace.

Q. When you are not facilitating real estate deals, how do you spend your off time?

A. Golf has always been a passion of mine. But I really love spending time traveling with my family whenever we can all be together.

Banks are expanding asset-based lending operations – and establishing new ones – as they target new customers that have long been in the sights of specialized finance companies.

After 25 years spent exclusively serving larger corporations, Citibank has expanded its asset-based lending to midsized companies. Short Hills, N.J.-based Investors Bancorp, which operates six Long Island branches, and Manhattan-based Signature Bank, which operates seven Island branches, both launched new asset-based lending operations late last year, while other national lenders – including San Francisco-based Wells Fargo and North Carolina-based Bank of America – are busier than ever with asset-based lending.

Asset-based lending by 35 of the biggest such lenders rose about 9 percent, to more than $200 million, in 2013, up from $183.5 million in 2012, according to the Commercial Finance Association, a Manhattan-based trade group. About 24 percent of the association’s members are banks, while 76 percent are not financial institutions, but “there are many more bank-based, asset-based lenders than there used to be,” according to Neil Seiden, managing director of Port Washington financial adviser Asset Enhancement Solutions.

“A good part of it has to do, I believe, with the recession,” Seiden said, noting asset-based lending gives banks a tool that can be particularly useful during difficult times.

In this type of lending, companies pledge assets against loans, including accounts receivable, inventory, machinery and even real estate. Banks monitor the value of these assets more closely than with a typical loan, making sure the collateral’s value remains and allowing the banks “to do a deal they typically wouldn’t do,” Seiden said.

Investors Bank CEO Kevin Cummings agreed this helps “to broaden Investors’ banking capabilities,” while Signature CEO Joseph DePaolo said asset-based lending “strengthens our product offerings” to private business.

Asset-based lending also provides a nice profit boost over other forms of lending, since these loans typically carry higher interest rates than traditional loans.

“We think from a credit perspective, it’s fundamentally sound,” said David Viggiano, Investors Bank’s senior vice president and head of asset-based lending. “The yields are marginally higher than typical commercial and industrial lending.”

But they also can be more costly for borrowers, who must provide a steady stream of updated financial information.

“There’s more monitoring and reporting to the lender,” Seiden said. “But the additional reporting gives the lender comfort and allows them to extend more credit to the company.”

To that end, asset-based lending requires a certain expertise, which allows lenders to value and track changes in asset values.

“We do a lot of testing and monitoring,” Viggiano noted.

But “generally, assets have proven to be good forms of collateral,” Viggiano added, and while banks make these loans to a wide range of clients, Investors Bank extends many based on inventory and receivables – particularly to manufacturers, service providers and information technology companies.

Investors Bank Senior Vice President Joseph Costanza referenced a Long Island manufacturer that replaced a $13.5-million traditional credit facility with a $19.5-million asset-based loan from another financial institution.

Seiden said he’s seen several clients shift from traditional loans to those based on assets. Banks typically charge more than for conventional lending, he noted, but typically “less than a non-bank lender.”

While an underperforming economy has made asset-based lending more popular, an economic recovery could also lead to greater asset-based demand.

“As the economy becomes more robust, there’s a need for working capital financing,” Viggiano said. “As credit strength improves, there’s greater demand.”