Roosevelt Landings is a mixed-income multifamily complex, consisting of 9 buildings and over 1,003 multifamily dwellings.
Roosevelt Landings used a $5M NYCEEC loan to fund an energy services agreement and power purchase agreement structure that financed an $8M comprehensive efficiency and resiliency project.
By installing cogeneration and other efficiency improvements, the project generated in Year 1 over $1.1M in ESA & PPA revenue, exceeding the first year projections by 14%.
The project was also awarded the 2014 Novogradac Renewable Energy Power Award for Financial Innovation.
- Project type: Energy efficiency and cogeneration
- Total project cost: $8M
- Financial product: Energy services agreement & power purchase agreement
- NYCEEC role: $5M loan
THE CLIENT CHALLENGE
Roosevelt Landings wanted to upgrade outdated systems and improve the complex’s resiliency. The project’s technical complexity and long payback meant that traditional loans were not available.
Furthermore, Roosevelt Landings’ primary lender had the right to approve additional secured lending arrangements, a typical circumstance and a common energy efficiency barrier.
THE NYCEEC SOLUTION
NYCEEC came into the project to analyze the financing oppotunity and provide the debt to facilitate the transaction. Having energy expertise and a fundamental mission of helping building reduce energy use, NYCEEC was able to underwrite the projected savings, which in this financing structure serve as part of the loan collateral. NYCEEC provided a $5.0M loan to fund a combined energy services agreement for the efficiency measures and power purchase agreement for the cogeneration project.
Third-party investors, including an owner affiliate, invested equity in the project at a market rate of return. NYSERDA and Con Edison incentives completed the funding for the project.
Cogeneration, whole-building air sealing, floor slab insulation, networked programmable thermostats and high-efficiency boilers
NYCEEC’s loan enabled Roosevelt Landings to achieve significant cost savings at no initial cost.
- Project completed with no upfront cost to the building owners and no additional debt
- Building’s cash reserves are preserved
- ESA and PPA revenue exceeding projections
- Pioneering use of an energy services agreement in multifamily
- Largest multifamily air sealing project in NYC to date
“Not only did NYCEEC funding help get our project off the ground, but it eliminated all upfront costs so we could pay through the savings.”
– Josh Eisenberg | Executive Vice President and General Counsel, Urban American