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CARLSTADT, NJ-DDG Realty has received a total of $3,885,000 in two tax-exempt bond financings, which will be used to buy and renovate the 66,373-sf facility it has leased here for its operating company, Design Display Group Inc., for the last 10 years. The funding will also be used to buy new equipment for the company, which designs and makes point-of-purchase displays for companies like Nike, Sony, Pepsi-Cola, AT&T, Toys ‘R’ Us, Chanel and Estee Lauder.

“We looked into relocating, but couldn’t find another larger facility to meet our needs in this area,” says DDG president Andrew Freedman. “So we decided to buy the facility and lease additional warehouse space next door. The space in the building we bought is now rededicated to manufacturing, and the adjacent warehouse will be used for storage.”

The initial variable interest rate on the 10-year bonds is 2.17%, according to Freedman. The financing was obtained from the New Jersey Economic Development Authority, and Fleet Bank purchased the bonds. EDA is authorized to issue tax-exempt bonds under the federal Internal Revenue Code, and bond purchasers don’t have to pay federal or state income taxes on the interest earned. The difference is passed on to the borrower in the form of lower interest rates.

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