Morris Avenue is a 54-unit rental building in the Fordham area of the Bronx. The building was burning heavy #6 oil and had outdated and inefficiency building systems.
The property owners sought a cost effective way to cut costs and upgrade building systems, while preserving the building’s limited capital reserves.
NYCEEC structured a loan for Morris Avenue that financed 100% of the project costs and made the building cashflow positive from day one.
- Project type: Fuel conversion and energy efficiency
- Total project cost: $150,900
- Financial product: Direct loan
- NYCEEC role: $150,900 loan
THE CLIENT CHALLENGE
Morris Avenue is a 54-unit rental building in the Fordham area of the Bronx with inefficient systems and a heavy #6 oil heating plant. The property owners were looking for a cost effective way to improve the building systems and cut costs. With limited capital resources, the property owners sought a creative financing solution that preserved capital reserves.
THE NYCEEC SOLUTION
NYCEEC financed 100% of the $150,900 project cost, and provided multiple draws to match the construction milestones. The loan will be repaid through a energy and commodity savings.
The building will save over $32,000 a year, and will be cashflow positive from day one. The NYCEEC loan was structured so that the cost savings will exceed loan payments.
During the oil to gas conversion project, additional plumbing work was suddenly necessary to complete the project. NYCEEC stepped in to finance this related construction work, allowing the conversion project to perform effectively.
Heavy #6 oil to natural gas conversion, separation of domestic hot water, high efficiency boilers, chimney cleaning, timers and heating controls, wireless building management system.
Morris Avenue has achieved significant cost savings while improving tenant comfort and health.
- Project commenced with no out of pocket costs
- Cashflow positive from day one
- Building cash reserves are preserved
- Compliance with Local Law 43: Clean Heat
“NYCEEC was quick, responsive and flexible throughout the loan process, from providing multiple draws to financing additional, related construction. Not only did NYCEEC’s loan help us, but their technical expertise was key to completing our gas conversion and efficiency work.”
– Jonathan Coren, Building Owner, Morris Avenue