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Adaptive Reuse: Heat Pumps for a Historic Rehabilitation

Location

Troy , NY

Project Overview

Lender: 
Community Preservation Corporation (CPC)
Lender Type: 
CDFI
Property Type: 
Subsidized
Property Ownership: 
Non-profit
Deal Overview: 

In 2013, this historic building underwent a substantial rehabilitation, which included replacement of the electric baseboard heating system with a new, efficient ground source heat pump system, among other major upgrades. This investment saw a significant return as both resident comfort and cash flow greatly improved.

Metering Configuration: 
Hot water, water & sewer utilities paid by owner
Improvements Covered: 
Energy efficiency, Water efficiency
Type of Project: 
Retrofit/Renovation
Buildings: 
1
Total Units: 
89

Financing Details

Financing Type: 
HUD loan, Mini-Permanent/Permanent
Total Delivery Cost: 
$2,419,746
Tax Equity: 
$15,000
Loan 1 Amount: 
$1,651,123
Loan 1 Term: 
30
Loan 1 Repayment Source: 
Utility and operations savings; rental income
Loan 2 Amount: 
$619,766
Loan 2 Term: 
40
Loan 2 Repayment Source: 
Utility and operations savings; rental income
Incentives/Rebates: 
$133,857
Completion Status: 
Completed

Underwriting Considerations

Security: 
Secured
Recourse: 
Full recourse
Expected Annual Income: 
Historical NOI is $191,919, but income with energy savings (adjusted NOI) is $205,358. This unlocked an additional $267,352 in available loan proceeds.
Debt Service Coverage Ratio: 
1.61
Percentage Projected Energy Savings Discounted for Use in Underwriting : 
50%

Additional Information

Point of Contact : 
Atalia Howe, Manager of Sustainability Programs, Community Preservation Corporation (CPC), [email protected]
Additional Information: 
The $619,766 loan is from HUD. Estimated $13,000 in annual savings.