Recycled construction debris is now in high demand

When Michael and Elizabeth Allocco established Alloco Recycling in 1990, they never thought they were getting into a "sexy" business. Alloco Recycling processes construction debris for the NYC area, recycling concrete and other construction debris by crushing it. The product is then reused as a component in concrete for new projects. This recycled concrete has been in high demand, replacing such materials as sand, gravel and stone, because the recycled concrete is less expensive. Now the allure of the more economical recycled concrete is being eclipsed by the environmentally friendly nature of the business, i.e. taking used products and recycling them. Not only does this take used material 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 celebrities and well-known individuals sponsoring recycling and environmental causes and the intense concentration on ways to conserve our planet's resources, Alloco finds itself on the leading edge of a movement that embraces its core values. Now it's "sexy" to be a business that recycles! One of the major materials the company handles is scrap metal. In fact, the growth of scrap metal recycling, caused the company to move into a twenty four hour operation that requires additional space. Alloco currently operates from a 22,500 s/f building on 4 acres of land on Kingsland Avenue in Brooklyn. It will keep that location to recycle concrete and other demolition debris but is expanding with the purchase of a 20,000 s/f 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 Alloco direct access to the railroad tracks as well as to barge and truck thoroughfares. It will also be able to add a shredder to reduce the scrap metals to manageable pieces for greater cost effectiveness. 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. Alloco is putting in 10% of the project as a down payment. The financing combination will permit Alloco to preserve its cash for the working capital needs of the expansion. Charles Schreiber and Ken Kowalczyk, the GNYDC lenders who handled the deal, said, "Michael and Elizabeth, who have operated Alloco for over 17 years, have created a niche business which supports our region's needs to preserve our environment. In today's world, recycling to take construction debris out of our waste stream and make it productive again ...what could be better?!" For information on low cost financing see www.gnydc.org. Roslyn Goldmacher is a licensed real estate broker in N.Y. as well as president / CEO and founder of The Long Island Development Corp. & The Greater N.Y. Development Co.