As businesses and professionals flock to South Florida, the need for tailored banking solutions has never been greater.
That’s where Banesco USA comes in. Since 2006, the South Florida-based community bank has provided its commercial clients with personalized solutions and expert guidance. Today, as South Florida becomes a hotbed of new commercial and industrial development, Banesco USA is expanding its footprint and is poised to become the region’s leading community bank servicing individuals as well as the commercial real estate (CRE) and commercial & industrial (C&I) lending verticals. The Real Deal sat down with Banesco USA’s Executive Vice President & Head of Corporate Banking Nelson Hidalgo, Head of Commercial Real Estate Brian Barroso, and Senior Vice President and Head of Commercial & Industrial Banking Carlos Lamourtte to talk about how their bank is leveraging its local business and banking expertise to serve South Florida during booming economic times.
The Confidence and Flexibility that Comes with Community Banking
Banesco has been a partner for the South Florida community for nearly two decades, and offers banking products and services to the commercial real estate sector, small- and middle-market businesses, as well as professionals from the community. Thanks to its roots in the region and its private ownership, the community bank is uniquely well-positioned to take on clients who are migrating to South Florida and seeking long-term banking partnerships. “It’s about stability,” explains Hidalgo.
Traditionally, larger institutions offered more favorable pricing for the in-the-box deals. However, local or migrating borrowers today require tailor-made solutions from a bank that is local and understands the market well and the fact that you are privately owned gives you more flexibility because you are not as concerned about potential mergers and acquisitions.
“This has led to a steady movement of companies wanting to bank with financial institutions that are privately owned and not at the mercy of continued merger and acquisition activity,” says Hidalgo.
Being privately held also gives Banesco’s team of expert bankers greater flexibility when offering loan terms. “One of the benefits is that we are able to tailor creative solutions and loan structures to meet a customer’s needs and match their business plan,” says Barroso. As more investors and businesses migrate to South Florida to take advantage of the state’s favorable business environment, Banesco is able to offer them tailored banking solutions, including loans that help them grow, whatever their scale. “We have a very sophisticated team of relationship managers who are able to service anyone,” says Barroso, “from your local CRE investor trying to buy their first duplex to private equity funds investing in multimillion-dollar retail, multifamily, or industrial properties in the region.”
Take, for example, the recent case of Top Turf. A private equity fund that acquired three different Florida-based artificial turf manufacturers and consolidated them into a single, new company, and needed to get a capital recapture. “Normally, a bank would have waited three years for the integration of those separate entities to be fully absorbed,” explains Lamourtte. “But we evaluated the strength of the fund, and the results of the individual businesses prior to the integration and the potential of escalating them, which enabled us to be more aggressive and jump into the transaction right away.”
Growing with South Florida
All these advantages help put Banesco in the perfect position to facilitate growth in a region that’s bucking national trends thanks to unprecedented migration. “Since COVID, the economy down here in Florida has been extremely resilient,” says Hidalgo. “We’re not facing the same challenges as other markets around the country, and that’s because the people migrating here have financial resources.” Miami native Hidalgo believes these changes are here to stay. “All you need to do is look at the waiting lists for memberships at country clubs, the waiting lists for private schools,” he says. “The region has really transformed in the wake of COVID.”
And it’s not only individuals moving to the area. “Companies from the Midwest and the Northeast are making their home bases here,” says Lamourtte, who joined Banesco to capture this growing C&I segment. As a community bank with deep ties to South Florida, Banesco is perfectly positioned to help new arrivals establish a foothold in the region.
These demographic changes are being reflected in South Florida’s residential development patterns along with corporate office openings. For example, Banesco USA provided $14 million in construction financing for PEBB Enterprises’ mixed-use commercial development in Delray Beach that includes retail and self-storage aimed at high-net-worth individuals who are relocating to South Florida along with their companies.
“These are upscale self-storage units where residents can keep high-value items such as wine collections,” shares Barroso. “And they’re nearly sold out.”
North of Delray in Palm Beach, the luxury residential market and growth in business activity has been so robust that the bank hired an entire banking team led by Roland Valdivieso in the last year just to serve clients and manage relationships across the Palm Beach market.
Building Lasting Relationships
We spoke with some of Banesco’s partners in the C&I and CRE verticals around South Florida to get a firsthand idea of what it’s like to work with the bank. “Our company has had a very positive experience working with Banesco,” says a representative from Classic Metals Suppliers Corp, an aluminum supplier based in Opa-locka. “Being able to meet directly with decision-makers and know that our financial partner has local market knowledge has made all the difference.”
On the CRE side, Banesco USA has built a relationship with PEBB Enterprises, partnering with the developer to provide financing for three South Florida developments. “The team at Banesco shares our passion for the communities we do business in,” says PEBB Enterprises President & CEO Ian Weiner. “We look forward to expanding our relationship further in the years to come.”
The bank has also developed relationships with regional companies that do business in Florida and beyond, including Italian restaurant chain Piola, which has locations in South Florida and Texas. “Banesco is the perfect size bank,” says a representative from Piola.
“They’re small enough to keep track of every detail, and large enough to offer support and solutions when you need them.”
No matter the scale of the financing, complexity or scope of any given transaction, Banesco approaches every client with the same intention, consideration and personalized service. “We’re looking for relationships,” emphasizes Hidalgo. “The most important thing is not a term, or a rate, or a fee. All those are negotiable. The most important thing is that people feel comfortable with us, know our track record, and are confident that we can get the deal done. After that, everything else falls into place.”
With offices in Doral, Aventura, Brickell, Coral Gables, Hialeah, and a loan and deposit production office in Palm Beach County, as well as a regional office in San Juan, Puerto Rico, Banesco offers on-the-ground support to all their clients across South Florida and Puerto Rico. If you or someone you represent is looking for a banking partner, reach out to the Banesco team today and begin a relationship that will grow along with your business.
To learn more, please visit banescousa.com.