Taking Summit Plaza from Acquisition to Recapitalization: - - PowerPoint PPT Presentation
Taking Summit Plaza from Acquisition to Recapitalization: Leveraging Operations, Utility, and Environmental Costs Redeveloped by: Belveron RE Partners & Low Income Housing Corp (LIHC) Summit Plaza Jersey City, NJ 483 Units Project Based
Redeveloped by: Belveron RE Partners & Low Income Housing Corp (LIHC) Summit Plaza Jersey City, NJ 483 Units Project Based Section 8 Site
Leveraging Operations, Utility, and Environmental Costs
Original Site and Current Site,
etc.
5 minute walk to Journal Square PATH 11 minute train to World Trade Center 22 minute train to Penn Station (34th Street)
Location, Location, Location
Summit Plaza Transit Station
HUD Operation Breakthrough: Innovative Construction and Systems
Innovative Systems: 1970s Off Grid Living for 1,150 Residents
Innovative Systems: Labor Saving Pneumatic Trash Collector
Modular Construction 1.0 and Transit Oriented Development vs. Today 18 story construction with “concrete box” prefabricated slide-in-place modules
Deep Dive on Mechanical Due Diligence: Legacy Issues
HVAC: Operating and Maintenance Cost Creative Thinking: Challenge Replace in Kind Mentality Holistic: Multiple Benefits from each Expenditure With Underwriting of Savings The Sum is Greater Than the Addition of the Parts Due Diligence Leads To Two Key Contractors and No GC Finding Root Cause: The First Day of the Next 40 years
ISSUES
Testing
RESULTS:
Environmental Clean Up Reduces Cost and Allows HUD Approval
The Legacy Amenity: Pool $666/day
2018 Summit Plaza Resident Experience
All This AND Net Savings $20,000/year
Resident Services Coordinator
Infill New Community Room New Lobby Security Office with Window
Loan Committee
energy and operational savings underwritten was very critical (Sparhawk Group and PSE&G)
Rockport Mortgage Translated Vision to HUD
$14,000 $11,700 $10,300
4,000 6,000 8,000 10,000 12,000 14,000 16,000 Annual Operating Cost: Dollars Per Unit Base Underwriting Loan New Loan 2015 2017 2018
RESULTS
2015 2017 2018 Base Year $0 $1.100 $1.775
1.0 1.5 2.0 Annual Operating Expense Savings, $ Millions 2017 Actuals 2018 Estimated
Rough Waters: New Approaches, New Tools & New Crew
Think Outside “Replace In Kind”
Expanded PSE&G Cost $3.6 million Incentive $2.3 million Savings/yr $382,000 Payback After Incentive 3.5 years Owner Infrastructure Expanded Utility Incentive Project Original PSE&G Cost $1.5 million Incentive $774,000 Savings/yr $129,000 Payback After Incentive 5.6 years Original Utility Incentive Project Step 1: Starting Point Step 2: Owner Advocate + Due Diligence
Think Whole Site AND Total Cost of Operation
PSE&G + Owner Cost $11.2 million Incentive $2.9 million Savings/yr $1.6 million Payback after Incentive 5.0 years Expanded Utility Incentive Project Entire Owner Project: Utility Infrastructure, Windows, Water Conservation, Combined Heat and Power, Solar PV, Controls Original PSE&G Cost $1.5 million Incentive $774,000 Savings/yr $129,000 Payback after Incentive 5.6 years Original PSE&G Project Step 1: Starting Point Step 3: Total Cost of Operation $3.6 + $1.6 + $6 - $2.9 Incentive - $0.2 ITC = $8.1 Million NET Cost
Identifying Root Needs and Causes
Identifying Root Needs and Causes
Root Causes: Right Sizing For Savings
Creative Solutions Reduce Capital Cost and Operation Cost
Documented Operations Savings: $481,000 per year, $1,000 per unit
2015 Purchase Order for Operations and Maintenance MECHANICAL
483 Units
Contractor Building Service Description 2015 Sum of Purchase Orders Eliminated Heating Repairs *1 Remaining Plmb & Heat Repairs Estimated Materials Estimated invoice labor *2 Labor Savings $110 vs $225/hr *3 New Budget Budget per unit Prestige 625 plmb/heat repairs $42,014 $21,175 $20,838 $4,168 $16,671 $8,669 $12,170 Prestige 627 plmb/heat repairs $53,810 $16,762 $37,049 $7,410 $29,639 $15,412 $21,636 Prestige 700 plmb/heat repairs $159,286 $90,624 $68,662 $13,732 $54,930 $28,563 $40,099 Prestige 730 Bldg 730, all 2015 $318,815 Prestige 730 Sprinkler Engineering $55,000 Prestige 730 Sprinkler Permits $44,000 Prestige 730 New DHW $123,519 Prestige 730
$96,296 $26,894 $69,402 $55,521 $28,871 $26,650 Prestige
$5,404 $1,980 $3,424 $1,712 $890 $822 Prestige central plant mixed capital & operating $73,436 $23,406 $50,030 $25,015 $13,008 $12,007 Mechanical Total without capital projects $356,809 $180,840 $249,404 $183,487 $95,413 $80,555 $167 ELECTRICAL Contractor Building Service Description 2015 Sum of Purchase Orders Eliminated Heating Repairs *1 Lighting Fixture/Lamp Savings *4 One Time Install GFI Cost *5 New Budget Statsi All work $234,785 Statsi 700 new sprinkler panel 700 $111,344 Statsi 730 new sprinkler panel 730 $13,696 Statsi All work Non-capital projects $109,745 $4,593 $31,986 $31,986 $41,180 $85 Universal All buildings Non-capital projects $97,858 $23,258 $74,601 $154 Electrical Total without capital projects $207,603 $27,850 $31,986 $31,986 $115,781 $240 SUPPLIES Contractor Building All supplies for consumables, repairs and unit turns 2015 Sum of Purchase Orders Eliminated Toilets As All Will Be Replaced *6 New Budget HD Supply All $121,053 $8,878 $112,176 $232 Total of 2015 Purchase Orders/Invoices, no capital projects $905,334 $424,292 $878 Projected Annual Savings $481,041
Monthly Power Cost: 291 Units, 2 Buildings, plus Central Plant 2015/2016/2017
20,000 30,000 40,000 50,000 60,000 70,000
February March April May June July August September October November December January
Cost ($/month)
100 200 300 400 500 600 700 800 900
May June July August September October November December
Demand (kW)
2015 Demand 2017 Demand 2015 Demand Trendline 2017 Demand Trendline
Electric Power Demand: 291 Units, 2 Buildings, plus Central Plant 2015/2017
Site Wide Water and Sewer Savings 2015/2017
$- $10 $20 $30 $40 $50 $60 $70 $80
January February March April May June July August September October November December
Cost ($/unit-month)
April 1 to December 31, 34% Savings, $325/unit annualized savings
Percent Savings 4% 24% 41% 42% 46% 30% 42% 45% 40% 50% 39% 39%
Cooling Tower Water Savings: 6.4 gpm/24/7 for four summer months! 2015/2017
Percent Savings 49% 53% 64% 79%
$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00
June July August September
Cost ($/unit-month)
Month
Gas and Electric Savings: Not Weather Normalized, 2015/2017/2018
Percent Savings 40% 33% 29% 36% 36% 52% 48% 40% 40%
2017/2015 HDD %
49% 145% 197% 93%
$- $50 $100 $150 $200 $250 $300
May June July August September October November December January
Cost ($/unit-month)
More Savings to Come: February 2018
50 100 150 200 250 300 350 0:00 4:00 8:00 12:00 16:00 20:00 0:00 Usage (kW) Time
Daily Electric Power Usage (Feb 5, 2018)
Building… Cogen Power
Holistic Approach is Greater Than The Sum of Parts
PSE&G + Owner Cost $11.2million Incentive $2.9 million Savings/yr $1.6 million Payback 5.0 years Expanded Utility Project Entire Owner Project: Utility Infrastructure, Windows, Combined Heat and Power, Solar PV, Controls
$3.6 + $1.6 + $6 - $2.9 MM Incentive - $0.2 ITC = $8.1 million NET Cost
Year Portfolio Manger Energy Benchmark HUD Water Benchmark 2015 2 10 2017 30 33 2018* 87 63
* - Projected Use Based on 2017 Savings
Amy Johnson Portfolio Management Belveron RE Partners amy@belveronpartners.com 303 888 4350 Matthew Holden, P.E. President Sparhawk Group mholden@sparhawkgroup.com 207 650 1172
Thank You!