SUCCESS BY THE NUMBERS

440
ANNUAL COST SAVINGS
38
PROJECTED ENERGY SAVINGS
36
PROJECTED GHG REDUCTION
5
VEHICLES REMOVED OFF THE ROAD

OVERVIEW


East 24th Street, a cooperative comprised of 388 residential units and 4 commercial units, approached NYCEEC with a dilemma. The building had nearly everything lined up to break ground on a cogeneration-driven energy efficiency investment: project specifications, NYSERDA incentive, and board approvals were in place.

Instead of putting the project on the back-burner, the building asked NYCEEC to develop a financing solution that worked for them and their mortgage lender. NYCEEC worked closely with the lender to develop a mechanism for the financing, and ultimately secured their consent to move forward with the project.

  • Project type: Cogeneration, new chillers & sub-metering
  • Total project cost:  $4.4M
  • Financial product: Equipment loan
  • NYCEEC role:  $2.9M loan

THE CLIENT CHALLENGE


East 24th Street, a cooperative comprised of 388 residential units and 4 commercial units, approached NYCEEC with a dilemma. The building had nearly everything lined up to break ground on a cogeneration-driven energy efficiency investment: project specifications, NYSERDA incentive, and board approvals were in place. The remaining sticking point was project financing. On one hand, the building’s mortgage had restrictive covenants that seemed to preclude borrowing to fund the project, and on the other, the co-op could not self-fund it because it wanted to maintain its reserves, preserve its credit line capacity and avoid assessing residents.

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THE NYCEEC SOLUTION


Instead of putting the project on the back-burner, the building asked NYCEEC to develop a financing solution that worked for them and their mortgage lender. NYCEEC worked closely with the lender to develop a mechanism for the financing, and ultimately secured their consent to move forward with the project. In the end, NYCEEC financed a significant share of the project by providing a 9.5 year, $2,950,000 equipment loan.

THE RESULTS

Through this collaborative effort, the building got the financing that they needed, and NYCEEC successfully developed a streamlined approval process for this high-volume NYC mortgage lender that can be used again for future projects.

  • Cleaner and better-performing building from new 750kW cogeneration plant, 430-ton chiller and a master-meter/sub-metered plan that allowed tenant benefits of the new cogen and HVAC systems

  • Preservation of building reserves and credit line

  • Proven success in financing clean building upgrades when restrictive mortgage covenants are in place

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“The cogen project made sense for our building—saving money, improving resiliency and raising comfort. NYCEEC’s flexible financing and problem-solving approach were the solution to our financing needs.”

– Rick Buckholz | Co-op board member