East 132nd Street is a 300,000 square foot warehouse in the South Bronx with two tenants, including the NYC Department of Sanitation.
The warehouse sought to comply with Local Law 43: Clean Heat and at the same time achieve significant cost savings.
NYCEEC provided $205,000 in debt financing using an on-bill utility structure from the building’s gas provider.
- Project type: Heavy #6 oil to natural gas conversion
- Total project cost: $205,000
- Financial product: Equipment loan
- NYCEEC role: $205,000 loan
THE CLIENT CHALLENGE
East 132nd Street is a large warehouse in the South Bronx with two tenants, including the City of New York Department of Sanitation.
The warehouse owners needed to comply with the local heating fuel regulations, Local Law 43: Clean Heat, and convert from burning heavy #6 oil to natural gas. The warehouse owners desired a turnkey financing solution to fund 100% of the project costs at no
THE NYCEEC SOLUTION
NYCEEC’s technical and financial expertise was key to structuring a financing solution that worked for the warehouse.
NYCEEC provided a $205,000 loan to finance 100% of the project costs. Partnering with the warehouse’s natural gas provider, the loan will be repaid through a simple on-bill utility mechanism, and was structured so that the energy cost savings would exceed the
Because of this loan structure, the warehouse owners are cashflow positive from day one, and the project commenced at no out of pocket costs.
Heavy #6 oil to natural gas fuel conversion
NYCEEC’s team helped the warehouse owners save significant amounts of money and comply with local NYC regulation.
- Finance the project at no out of pocket costs
- Repay the loan with a simple on-bill financing mechanism
- Cashflow positive from day one
- Compliance with Local Law 43: Clean Heat
- Healthier and cleaner warehouse facility and community