HALO Branded Solutions New Headquarter Building
Location: Sterling, Illinois
Project Description & Impact: Construction of a 157,000 square foot new office and warehouse facility for HALO Branded Solutions. This project allows the company, which is located in a distressed rural area, to retain its existing 263 employee workforce, create 244 new full time jobs, and provide additional build out for continued growth to benefit the community.
Client: Central States Development Partners (CDE)
Financing Tools Used: $9MM New Markets Tax Credit financing
The Story Behind this Project
Sterling, Illinois is situated in a distressed rural area where 70% of household incomes are under the area median. For 50 years, Sterling had been the home for HALO Branded Solutions, a leading provider of promotional products. With their 20-year office building lease nearing expiration and having outgrown their current office and warehouse space, HALO was considering its options.
Though it could make “business sense” to locate to another town, management preferred to remain loyal to its local employees and the community by finding a way to stay. Taking advantage of New Market Tax Credit financing would allow HALO to achieve its growth goals. Applegate & Thorne-Thomsen worked with Central States Development Partners which provided $9,000,000 or 49% of the total NMTC financing. Two other Community Development Entities provided the balance.
Once financing was in place, construction began in 2017 on the 157,000 sq. ft. office and warehouse building. This new facility will benefit both the company and the community in various ways:
- Its existing 263 employee workforce is retained.
- 244 new full time jobs will be created.
- Office space is increased from 32,000 to 67,500 sq. ft.
- Warehouse space increases from 57,000 to 90,000 sq. ft.
- The old warehouse was four miles from the office; now they’ll be contiguous.
- HALO’s new buildings now sits on a 20-acre site that allows for Phase II that could nearly redouble the new footprint and its workforce in less than five years.
Thanks to HALO leadership’s vision along with the efforts of the CDEs and Applegate & Thorne-Thomsen, the future is looking brighter for both the company and Sterling, Illinois.