Alloco Recycling Expands Utilizing SBA 504 Loan
When Michael and Elizabeth Allocco established Allocco Recycling in 1990, they never thought they were getting into a "sexy" business. Allocco processes construction debris for the NYC area- recycling concrete and other construction debris by crushing the concrete and debris. The product is then reused in concrete for new projects. This recycled concrete is now in high demand replacing such materials as sand, gravel and stone because the recycled concrete is less expensive.
The allure of the more economical cost of the recycled concrete is now being eclipsed by the environmentally friendly nature of the business- taking used products and recycling them. Not only does this take waste out of the waste stream but it cuts down on use of limited natural resources. It seems like one out of every two television commercials hawking anything from clothing to furniture these days is promoting the use of recycled materials. With famous stars sponsoring recycling, environmental causes and concentration on ways to conserve our
planet's resources, Allocco finds itself on the leading edge of a movement that embraces its core values. It is now "sexy" to be a business which recycles!
The company handles demolition waste and now concentrates on scrap metal. In fact, the growth of the scrap metal recycling, caused the company to move into a twenty four hour operation and require additional space. Allocco currently operates from a 22,500 square foot building on 4 acres of land on Kingsland Ave. in Brooklyn. It will keep that location to recycle concrete and demolition debris. The company is expanding with the purchase of a 20,000 square foot building on 1.25 acres on Laurel Hill Blvd., in Maspeth to handle the scrap metal portion of the business. The additional location -less than one mile from the existing one- will allow
The company handles demolition waste and now concentrates on scrap metal. In fact, the growth of the scrap metal recycling, caused the company to move into a twenty four hour operation and require additional space. Allocco currently operates from a 22,500 square foot building on 4 acres of land on Kingsland Ave. in Brooklyn. It will keep that location to recycle concrete and demolition debris. The company is expanding with the purchase of a 20,000 square foot building on 1.25 acres on Laurel Hill Blvd., in Maspeth to handle the scrap metal portion of the business. The additional location -less than one mile from the existing one- will allow
Allocco direct access to the railroad tracks as well as to barge and truck traffic. It will also be able to add a shredder to reduce the metals to manageable pieces for better pricing.
Financing of the additional location is being provided by Sterling Bank with a permanent 50% of project cost loan; UPS Capital Business Credit with bridge financing; and Greater New York Development Co. for 40% of project cost in a second mortgage position. Allocco is putting in 10% of the project as a down payment.
Financing of the additional location is being provided by Sterling Bank with a permanent 50% of project cost loan; UPS Capital Business Credit with bridge financing; and Greater New York Development Co. for 40% of project cost in a second mortgage position. Allocco is putting in 10% of the project as a down payment.
The financing combination will permit Allocco to preserve its cash for the working capital needs of the expansion.
Commented Ken Kowalczyk- the GNYDC lender who handled the deal- "this is a family operation for over 17 years. Michael and his wife Elizabeth have truly created a niche business which supports our region's needs to recycle and preserve our environment. Construction debris may not seem "sexy" but in today's world, recycling which takes debris out of our waste stream and makes it productive…what could be sexier?!"
Commented Ken Kowalczyk- the GNYDC lender who handled the deal- "this is a family operation for over 17 years. Michael and his wife Elizabeth have truly created a niche business which supports our region's needs to recycle and preserve our environment. Construction debris may not seem "sexy" but in today's world, recycling which takes debris out of our waste stream and makes it productive…what could be sexier?!"
