Garden Court - Sample Investment Report

This sample report demonstrates the investment analysis for the Garden Court decarbonization project

Investment Report

Real Estate Decarbonization Investment Report

Garden Court

208 & 209 W 119th Street, New York, NY

Prepared for

Investment Committee

August 1, 2025

Executive Summary

The proposed $6,470,734 decarbonization investment in Garden Courtcreates $7,874,523 in property value (1.2x multiple) while achieving 78% carbon reduction and full Local Law 97 compliance.

$7,874,523

Value Created

-5.0%

Project IRR

12.6 yrs

Payback Period

78%

Carbon Reduction

Property Overview

Property Type

Multifamily Co-op

Size

186,701 SF

Units

204 units

Year Built

1900

Energy Star Score

34 (Below Average)

LL97 Status

Non-Compliant

Current Financial Performance

Gross Revenue$60,000
Operating Expenses($1,127,030)
Energy Costs$537,030
Property Taxes$225,000
Insurance$75,000
Maintenance$150,000
Management$90,000
LL97 Fines($36,889)
Net Operating Income-$1,103,919

Decarbonization Investment Portfolio

Geothermal HVAC System

Replace oil boilers with 375-ton ground-source heat pump system

$6,703,568

-$2,011,070 incentives

Annual Savings

$363,875

ROI

8%

Carbon Reduction

911 tons/yr

Implementation

18-24 months

Window Film Installation

Add low-E films to 706 windows to reduce solar heat gain

$198,451

-$0 incentives

Annual Savings

$31,690

ROI

16%

Carbon Reduction

159 tons/yr

Implementation

2-3 months

LED Lighting Retrofit

Replace remaining 50% CFL fixtures with high-efficiency LEDs

$225,371

-$45,074 incentives

Annual Savings

$15,280

ROI

8%

Carbon Reduction

2 tons/yr

Implementation

1-2 months

Rooftop Solar PV

252kW solar array with 549 panels on roof

$1,622,336

-$486,701 incentives

Annual Savings

$45,360

ROI

4%

Carbon Reduction

52 tons/yr

Implementation

4-6 months

Low-Flow Water Fixtures

Install water-saving fixtures in all 204 units

$293,170

-$29,317 incentives

Annual Savings

$18,750

ROI

7%

Carbon Reduction

0 tons/yr

Implementation

2-3 months

10-Year Financial Projection

Investment Summary

Total Project Cost$9,042,896
Less: Incentives-$2,572,162
Net Investment$6,470,734

Value Creation

Current Value (@6.5% cap)-$16,983,369
Projected Value-$9,108,846
Value Created$7,874,523

Risk Analysis & Mitigation

Regulatory Compliance

Eliminates current $36,889/year fines and future penalties up to $212,255/year by 2035

Secured Incentives

$2,572,162 in federal tax credits and utility rebates reduce project risk

Market Positioning

Energy Star score improvement from 34 to ~75 achieves market parity

Investment Recommendation

Recommendation: Proceed with full decarbonization program implementation.

The investment achieves a 1.2x value creation multiple while eliminating regulatory risk, improving operational efficiency, and positioning the asset as a sustainability leader. The -5.0% IRR exceeds typical value-add renovation returns while achieving critical ESG objectives.

Next Steps:

  1. Approve $6,470,734 capital allocation
  2. Engage engineering firms for detailed design
  3. Secure C-PACE and equipment financing
  4. Begin phased implementation with geothermal system
  5. Monitor and report on ESG impact metrics

This report is confidential and proprietary. Financial projections are based on current market conditions and engineering estimates.