As an experienced developer, owner and operator of commercial real estate, including more than 10,000 multifamily and senior housing units, Andy Jubelt knows a thing or two about how energy and sustainability improvements add value to all parts of a property or company. He is a Principal at Avant Capital Partners and specializes in creative and innovative strategies to enhance the long-term value of commercial real estate.

Mr. Julbelt understands that the financial cost reductions associated with superefficient buildings — making the pursuing of energy retrofits by owners and investors the wave of the future.

Consider this: buildings in the U.S. consume a lot of energy. In fact, they use 42 percent of the nation’s primary energy and 72 percent of its electricity. Unfortunately, much of that energy is needlessly wasted through inefficient design and operation.

The following are the reasons why commercial real estate professionals such as Mr. Julbelt are recommending superefficient building retrofitting:

• Energy retrofitting can reduce a buildings’ energy consumption by 54–69 percent over business-as-usual projections through 2050. As a result, absolute energy consumption in 2050 that would be 40–60 percent less than in 2010, despite a 70-percent bigger building stock.
• A joint Rockefeller Foundation / Deutsche Bank Group 2012 study found energy savings worth four times their cost in ten-year time frame. An investment of $279 billion could yield more than $1 trillion in energy cost savings.
• Numerous studies and surveys note that, compared to market averages, energy-efficient green buildings boast reduced absenteeism, better employee health, higher occupancy rates, increased rental rates and sales prices, and decreased financial and regulatory risk.
• A growing body of statistical evidence suggests that green office buildings can command rent premiums of 3–6 percent and sales price premiums of 10 percent or more.

A focus exclusively on saved energy costs overlooks other important values, known as “value beyond energy cost savings” (or VBECS). For example, risk is one of the most important factors in any deep energy retrofit capital decision and has a direct tie to VBECS. Risk is not just a soft, indirect, or non-financial consideration, but one of the most important value elements in a deep energy retrofit investment. For example, an annual $1,000 retrofit cash flow benefit with a five percent return requirement would be valued at $20,000, approximately 100 percent higher than the same $1,000 cash flow benefit valued assuming a 10 percent return requirement.

Sustainability and energy efficiency have become central concerns to regulators, employees, customers, clients, boards, and other stakeholders. Maximizing recognition of value by all stakeholders requires understanding what aspects of sustainable value are most critical to different stakeholder groups and clearly communicating these values. Andrew Julbelt understands this. Please contact Andrew Jubelt at (212) 231-9779 for more information about how energy and sustainability improvements add value to a commercial property.

As an experienced developer, no one is more acutely aware of the need for developers to secure bridge and permanent financing for multifamily and commercial properties, at competitive rates, than Mr. Andrew Julbelt. Mr. 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 New York Real Estate Journal in their role of facilitating permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition. The New York Real Estate Journal provides the latest commercial real estate news for the state of New York, profiling the most influential companies and people in the real estate industry.

The article profiled the $1.4 million bridge loan secured by a condominium portfolio originated by AVANT Capital Partners. The 24-month loan carries an interest rate of 10.75 percent, facilitating a discounted construction loan payoff for the original developer of the project.

The 13-story building located in Brooklyn consists of a vacant ground floor retail condominium and 38 residential condominiums that were completed and brought to market in 2009. The property, a former piano factory, was originally built in 1903.

Please contact Andy Jubelt at (212) 231-9779 or email Avant Capital Partners at info@avcapital.net to learn more about permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition.

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:

1. Lower energy costs can drive higher rents - Lower energy costs reduce overall tenant-occupancy costs. Lower over-all occupancy costs can alleviate the crowding out of higher rents by ever-escalating utility cost reimbursements. These higher rents increase property value.
2. Lower energy costs increases building value - Buildings more profitable in cases where the landlord pays for utilities.

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.

Andy Jubelt is an experienced developer, owner and operator of commercial real estate, and a Principal at Avant Capital Partners, a real estate investment bank, advisory firm and correspondent lender for several institutional investors.

Avant Capital Partners was featured in the November Edition of the Scotsman Guide in an article titled “The Unsung Value of Energy Retrofits.”  According to the article, energy presents property owners and managers with the single largest operating expense in commercial office buildings. The author maintains that strategic reductions to operating costs through energy efficiency measures don’t only improve the bottom line, but they also develop positive branding of the property and increase occupancy demands.

Current loan underwriting practices provide little incentive for building owners to make their buildings more energy efficient, however. 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, an international standard for energy efficient consumer products, calculates that a 10 percent decrease in energy use could lead to a 1.5 percent increase in NOI — profit that will continue to increase with further savings. There are two options that building owners can take to reduce energy costs in their buildings: low-cost measures and cost-effective investments.

This cost-effective investment strategy requires capital however, and although a market for energy-efficient capital investment has not been developed fully yet, government authorities have started initiatives. One organization in particular, the New York City Energy Efficiency Corp. (NYCEEC), has been established to assist New York City implement its “Greener, Greater Buildings Plan” by helping private building owners get energy-efficient retrofit financing.

Incorporating energy efficiency as part of the underwriting process is expected to take time, however. For now, property owners can seek out public organizations such as New York City Energy Efficiency Corp. (NYCEEC), participate in programs like Property Assessed Clean Energy (PACE) or reach out to private institutions that focus on providing capital for energy- efficiency investments.

Mr. Jubelt’s financing experience includes over $1,000,000,000 of both debt and equity funding from a variety of sources including traditional and private sources. He specialized in creative and innovative strategies to provide value-added services and enhance long-term value for numerous complex transactions. Contact Andrew Jubelt at ajubelt@avant-capital.com or (212) 231-9779 for more information on energy efficiency, finance, and policy.

Andrew Jubelt and Avant Capital Partners provides commercial mortgages for stabilized

and in-transition investment properties nationwide. They offer permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in-transition. Avant Capital Partners originates commercial mortgages nationwide for multifamily, commercial, and bridge loan transactions.

Andy Jubelt has decades of experience working not just with banks but other financial outlets and interested individuals to offer the best options for funding at more attractive rates. This can speed up the time to sale, or improve forecasts on capitalization of earnings due to increased growth possible on "value add" properties that increase in value. Experience in looking for money is the key to Mr. Jubelt’s success in using debt and equity on more than $1,000,000,000 in funding.

Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, improved or otherwise redeveloped, with a clear exit strategy for loan repayment. This lending program offers competitive bridge loan rates, interest-only payments & quick closings.

In the current credit environment, Avant Capital adds value to commercial real estate brokers in a number of ways: Certainty of closing: Avant can provide borrowers with a comfort level about available financing necessary before entering into purchase contracts Avant can provide brokers with preliminary program quotes for all of their listings Partnering with Avant can reduce transaction costs for your clients Partnering with Avant helps provide additional fee income to real estate brokerages Avant Capital Partners can provide both buyers and brokers with peace of mind because both parties can feel comfortable knowing that there is a certainty of execution in the closing of transactions. Please contact Andrew Jubelt at (212) 23109779 for more information about how Avant’s lending platform levels the playing field between commercial real estate broker partners and competing nationwide firms.

Andy Jubelt is an experienced developer, owner and operator of commercial real estate including more than 10,000 multifamily and senior housing units.  As a Principal at Avant Capital Partners, Mr. Jubelt specializes in creative and innovative strategies to provide value-added services and enhance long-term value for numerous complex transactions. Such transactions include:

AVANT Small Business & Owner Occupied Program (SBA-504)

Avant Capital Partners offers mortgages for stabilized owner occupied real estate from $500,000 to $10,000,000 nationwide. This program offers competitive fixed rates for business oriented real estate and high leverage.

What is a SBA 504 Loan?

The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.

Property types under consideration include retail, industrial, office, medical office, dental office, commercial condominium, hotels, self storage, marina, health clubs, funeral homes, movie theaters, grocery stores, convenience stores, gas stations, truck stops, restaurants, banquet halls, auto dealerships, lube & oil change centers, tire care centers auto repair facilities and other special use business oriented real estate.

The following is a standard checklist of items that will be required for underwriting and loan committee:

1. Transaction Information

             Brief Description of Loan Request

•  Loan amount desired?
• Purchase or refinance?
• Purchase Price (if applicable)
• Copies of existing mortgage(s) (if applicable)
• Desired loan term?
• Desired interest rate?
• Other critical information timing/deadlines, property or borrower issues, background, etc.).

2. Property Information

• Property Address
• Property Type Description (square footage, occupancy, year built, number of units, etc.)
• Property History
•  Original purchase price and date acquired
• Total spent on capital improvements since acquisition
• Color photos (exterior and interior) 
• Copy of all leases
• Current rent roll
• If property is owned by a real estate holding company:
• Most recent years tax returns for real estate holding company
• Previous two years’ tax returns for real estate holding company
• Most recent Year-End Financial Statement (balance sheet and P&L statement)
• Previous two years’ Year-End Financial Statements (balance sheet and P&L statement)
• Interim financials (balance sheet and P&L statement)
• Debt Schedule
• Copies of existing third-party reports

3. Business Information

• Business name and description
• Most recent years’ tax returns for business and all affiliates
• Previous two years’ tax returns for business and all affiliates
• Most recent Year-End Financial Statements (balance sheet and P&L statement)
• Previous two years’ Year-End Financial Statements (balance sheet and P&L statement)
• Interim financials (balance sheet and P&L statement)
• Debt Schedule

4. Principal/Guarantor Information (anyone who owns 20% or more of the Business)

• Personal Financial Statement
• Schedule of Real Estate Owned  
• Resume
• Signed credit authorization
• Most recent years’ personal tax returns 
• Previous two years’ personal tax returns

Please contact Andy Jubelt at (212) 23109779 or email Avant Capital Partners at info@avcapital.net to learn more about AVANT Capital’s Premier Conventional and SBA 504 Lending Programs are focused on owner- occupied and investor real estate loans.