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Redeveloped by: Belveron RE Partners &
Low Income Housing Corp (LIHC)
Summit Plaza Jersey City, NJ
483 UnitsProject Based Section 8 Site
Taking Summit Plaza from Acquisition to
Recapitalization: Leveraging Operations, Utility, and Environmental Costs
Original Site and Current Site,
etc.
5 minute walk to Journal Square PATH 11 minute train to World Trade Center22 minute train to Penn Station (34th Street)
Location, Location, Location
Summit Plaza
Transit Station
HUD Operation Breakthrough: Innovative Construction and Systems
Innovative Systems: 1970s Off Grid Living for 1,150 Residents
Innovative Systems: Labor Saving Pneumatic Trash Collector
Modular Construction 1.0 and Transit Oriented Development vs. Today
18 story construction with “concrete box” prefabricated slide-in-place modules
Deep Dive on Mechanical Due Diligence: Legacy Issues
HVAC: Operating and Maintenance Cost
Creative Thinking: Challenge Replace in Kind Mentality
Holistic: Multiple Benefits from each Expenditure With Underwriting of Savings
The Sum is Greater Than the Addition of the Parts
Due Diligence Leads To Two Key Contractors and No GC
Finding Root Cause: The First Day of the Next 40 years
ISSUES
• Active NJ DEP case
• Annual Permitting and Testing
• Title V Air Permit
• Tanks, Tanks, Tanks
RESULTS:
• Clean Site
• $65,000/yr Savings
Environmental Clean Up Reduces Cost and Allows HUD Approval
This:
The Legacy Amenity: Pool $666/day
OR:
2018 Summit Plaza Resident Experience
All This AND Net Savings $20,000/year
Resident Services Coordinator
Infill New Community Room
New Lobby
Security Office with Window onto Site
• Rockport guidance during due diligence helped team quantify savings
• Rockport Mortgage translated our vision to HUD • Quantifiable data provided to HUD resulted in no pushback from National
Loan Committee• Two independent sources of documentation with such large amounts of
energy and operational savings underwritten was very critical (Sparhawk Group and PSE&G)
• Leveraged the energy and operation savings at 75% of expected savings
• Emphasized prior track record of reducing operational expense
Rockport Mortgage Translated Vision to HUD
$14,000
$11,700$10,300
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Annual Operating Cost: Dollars Per Unit
Base Underwriting
Loan
New Loan
2015 2017 2018
RESULTS
2015 2017 2018
Base Year $0
$1.100
$1.775
-
0.5
1.0
1.5
2.0
Annual Operating Expense Savings, $ Millions
2017 Actuals2018 Estimated
Rough Waters: New Approaches, New Tools & New Crew
Think Outside “Replace In Kind”
Expanded PSE&G
Cost $3.6 million
Incentive $2.3 million
Savings/yr $382,000
Payback After Incentive
3.5 years
Owner Infrastructure
Expanded Utility
Incentive Project
Original PSE&G
Cost $1.5 million
Incentive $774,000
Savings/yr $129,000
Payback After Incentive
5.6 years
Original Utility
Incentive Project
Step 1: Starting Point
Step 2: Owner Advocate + Due Diligence
Think Whole Site AND Total Cost of Operation
PSE&G + Owner
Cost $11.2 million
Incentive $2.9 million
Savings/yr $1.6 million
Payback after Incentive
5.0 years
Expanded Utility Incentive
Project
Entire Owner Project: Utility Infrastructure,
Windows, Water Conservation,
Combined Heat and Power, Solar PV, Controls
Original PSE&G
Cost $1.5 million
Incentive $774,000
Savings/yr $129,000
Payback after Incentive
5.6 years
Original PSE&G Project
Step 1: Starting Point
Step 3: Total Cost of Operation$3.6 + $1.6 + $6 - $2.9 Incentive - $0.2 ITC = $8.1 Million NET Cost
Identifying Root Needs and Causes
Identifying Root Needs and Causes
Root Causes: Right Sizing For Savings
Creative Solutions Reduce Capital Cost and Operation Cost
Documented Operations Savings: $481,000 per year, $1,000 per unit
2015 Purchase Order for Operations and MaintenanceMECHANICAL 483 Units
Contractor Building Service Description2015 Sum of
Purchase Orders
Eliminated Heating Repairs *1
Remaining Plmb & Heat Repairs
Estimated MaterialsEstimated
invoice labor *2
Labor Savings $110 vs $225/hr
*3New Budget Budget per unit
Prestige 625 plmb/heat repairs $42,014 $21,175 $20,838 $4,168 $16,671 $8,669 $12,170Prestige 627 plmb/heat repairs $53,810 $16,762 $37,049 $7,410 $29,639 $15,412 $21,636Prestige 700 plmb/heat repairs $159,286 $90,624 $68,662 $13,732 $54,930 $28,563 $40,099Prestige 730 Bldg 730, all 2015 $318,815Prestige 730 Sprinkler Engineering $55,000Prestige 730 Sprinkler Permits $44,000Prestige 730 New DHW $123,519Prestige 730 only plmb/heat repairs $96,296 $26,894 $69,402 $55,521 $28,871 $26,650Prestige other $5,404 $1,980 $3,424 $1,712 $890 $822Prestige central plant mixed capital & operating $73,436 $23,406 $50,030 $25,015 $13,008 $12,007
Mechanical Total without capital projects $356,809 $180,840 $249,404 $183,487 $95,413 $80,555 $167ELECTRICAL
Contractor Building Service Description2015 Sum of
Purchase Orders
Eliminated Heating Repairs *1
Lighting Fixture/Lamp
Savings *4
One Time Install GFI Cost *5
New Budget
Statsi All work $234,785Statsi 700 new sprinkler panel 700 $111,344Statsi 730 new sprinkler panel 730 $13,696Statsi All work Non-capital projects $109,745 $4,593 $31,986 $31,986 $41,180 $85
Universal All buildings Non-capital projects $97,858 $23,258 $74,601 $154Electrical Total without capital projects $207,603 $27,850 $31,986 $31,986 $115,781 $240
SUPPLIES
Contractor BuildingAll supplies for consumables,
repairs and unit turns
2015 Sum of Purchase
Orders
Eliminated Toilets As All Will Be Replaced
*6New Budget
HD Supply All $121,053 $8,878 $112,176 $232Total of 2015 Purchase Orders/Invoices, no capital projects $905,334 $424,292 $878Projected Annual Savings $481,041
Monthly Power Cost: 291 Units, 2 Buildings, plus Central Plant 2015/2016/2017
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
February March April May June July August September October November December January
Co
st (
$/m
on
th)
0
100
200
300
400
500
600
700
800
900 M
ay
Jun
e
July
Au
gust
Sep
tem
ber
Oct
ob
er
No
vem
ber
Dec
emb
er
De
man
d(k
W)
2015 Demand 2017 Demand 2015 Demand Trendline 2017 Demand Trendline
Electric Power Demand: 291 Units, 2 Buildings, plus Central Plant 2015/2017
Site Wide Water and Sewer Savings 2015/2017
$-
$10
$20
$30
$40
$50
$60
$70
$80
January February March April May June July August September October November December
Co
st (
$/u
nit
-mo
nth
)
April 1 to December 31, 34% Savings, $325/unit annualized savings
Percent Savings
4% 24% 41% 42% 46% 30% 42% 45% 40% 50% 39% 39%
Cooling Tower Water Savings: 6.4 gpm/24/7 for four summer months! 2015/2017
Percent Savings
49% 53% 64% 79%
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
June July August September
Co
st (
$/u
nit
-mo
nth
)
Month
Gas and Electric Savings: Not Weather Normalized, 2015/2017/2018
Percent Savings
40% 33% 29% 36% 36% 52% 48% 40% 40%
2017/2015 HDD %
49% 145% 197% 93%
$-
$50
$100
$150
$200
$250
$300
May June July August September October November December January
Co
st (
$/u
nit
-mo
nth
)
More Savings to Come: February 2018
0
50
100
150
200
250
300
350
0:00 4:00 8:00 12:00 16:00 20:00 0:00
Usa
ge (
kW)
Time
Daily Electric Power Usage (Feb 5, 2018)
Building…Cogen Power
Holistic Approach is Greater Than The Sum of Parts
PSE&G + Owner
Cost $11.2million
Incentive $2.9 million
Savings/yr $1.6 million
Payback 5.0 years
Expanded Utility Project
Entire Owner Project: Utility Infrastructure,
Windows, Combined Heat and Power,
Solar PV, Controls
$3.6 + $1.6 + $6 - $2.9 MM Incentive - $0.2 ITC = $8.1 million NET Cost
YearPortfolio
Manger Energy Benchmark
HUD Water Benchmark
2015 2 10
2017 30 33
2018* 87 63
* - Projected Use Based on 2017 Savings
Amy Johnson
Portfolio Management
Belveron RE Partners
303 888 4350
Matthew Holden, P.E.
President
Sparhawk Group
207 650 1172
Thank You!
