Regional Food Distribution Hub Feasibility Study
BJH Advisors worked with an urban design and planning firm to analyze the financial feasibility of a new, state-of-the-art, USDA compliant food distribution hub that supports regional Michigan farmers for the Detroit Eastern Market Corporation. The proposed hub includes a multi-building campus that would house large and small distributors, provide dedicated wholesale space for local farmers, and include on-site food processing. BJH created a financial model to estimate the construction costs necessary to build such a project, assess the revenue associated with the project based on market demand, and ultimately, project the gap associated with development of this hub. The analysis also tested the impact of conditions such as changes in demand, real estate tax obligations, or access to funding resources on feasibility. BJH also prepared economic impact analysis to estimate the number of jobs and the values of wages and total economic output associated with the proposed hub. The findings of the analysis will help Eastern Market Corporation negotiate with prospective public and private partners, funding sources, and tenants.
