Andrew Jubelt

Andrew Jubelt is a principal at AVANT Capital Partners, bringing his years of broad based experience to the process of acquisition financing and recapitalization of under-water projects to this a real estate advisory firm and lender.

Avant Capital Partners was recently featured in the November issue of the Scotsman Guide regarding the “Unsung Value of Energy Retrofits.” This article explores the single largest operating expense in commercial office buildings − energy.

Energy makes up about one-third of typical operating budgets, and accounts for almost 20 percent of national greenhouse gas emissions. By becoming more energy efficient, property owners and managers can reduce operating expenses, increase property asset value, and position themselves as environmentally friendly, which these days is a very prestigious distinction and important selling proposition.

Because the burden of high energy costs often falls on the tenants, buildings with lower utility costs can garner more demand and higher rents, which will increase the property’s net operating income (NOI). Energy Star calculates that a 10 percent decrease in energy use could lead to a 1.5 percent increase in NOI.

 

There are two key energy-cost considerations:

The cost-effective investment strategy requires capital, and although a market for energy-efficient capital investment has not been developed fully yet, government authorities have started initiatives. For example, Property Assessed Clean Energy (PACE) is a program that allows local government entities to offer sustainable energy project loans to eligible property owners. Another example is the New York City Energy Efficiency Corp. (NYCEEC). It has been established to assist New York City implement its Greener, Greater Buildings Plan by helping private building owners get energy-efficient retrofit financing.

For more information about AVANT Capital Partners lending programs focused upon financing stabilized and transitional commercial real estate nationwide, contact Andrew Jubelt at ajubelt@avant-capital.com or at (212) 231-9779.