Commentary of Value to Property Managers

Commentary of Value to Property Managers

Korn's Kernels!

Commentary of Value to Property Managers, Account Executives and Managing Agents.

WHEW! If you are like me, you are just glad the election is over. The constant harangues were too much. Now, with Donald Trumpgoing into the White House, hopefully we can return to business. Based on his initial remarks of building infrastructure, let’s keep our fingers crossed that he delivers on what is so sorely needed.

Speaking about going, are you going to the Council of New York Cooperatives and Condominiums (“CNYC”) Annual Conference this Sunday at Baruch College’s vertical campus? Barrett Capital has a booth in the Exhibit Hall, and if you stop by, we have a token gift for you that we are sure you can use. We also have Exhibit Passes if you need one. Just call or email.

With 700weather, climate change may have its benefits here in New York. While temperatures are up, economists are divided as to whether the economy is up. Unemployment is down (to 4.9%) and wage growth increased, signaling some momentum in the labor market. But, the strength wasn’t good enough for the Federal Reserve to raise interest rates. In the market, however, 10-year Treasury rates are up about 1/8 of a point. The odds makers now are saying the Fed will raise rates in December. However, Chair Janet Yellen, hedged, suggesting she needs to make sure the economy is improving enough to justify a raise. So, we must wait and see.

Closer to home the NYC Council on October 13th, unanimously approved legislation that expanded energy regulations to Mid-Sized Buildings. What this means is that when, in 2009, the City Council passed Local Laws 84 and 88, large buildings over 50,000 sq. ft.,were required to report their energy and water use.Now, that regulation includes buildings of 25,000 sq. ft. and over. Additionally, more commercial buildings must upgrade their lighting systems to comply with the current Energy Code.Its lighting standards applies in non-residential spaces in buildings 25,000 sq. ft. and up. And, to upgrade light systems,building owners must now also install electric sub-metering in tenant spaces larger than 5,000 sq. ft. Fortunately, Barrett Capital and its affiliate Barrett Green Management are positioned to assist you and your buildings with unsecured financing of your energy efficiency projects.

Lastly, we want to call to your attention the upcoming changes in accounting for leases. The Federal Accounting Standards Board, (“FASB”) the accounting rule making body in the UnitedStates, will require that lessees - borrowers show,on their balancesheets, the assets that are being financed through leases, along with their related lease liabilities. For privately owned companies – think co-ops and condominiums – this requirement begins for years beginning after December 15, 2019. While 2019 is 3 years away, many leases run 5 years, so it’s not too early to think about how your leases will be viewed and whether they might be creating a default situation if an underlying mortgage does not permit secondary financing. Again, Barrett Capital can come to the rescue with service contracts, such as energy efficiency savings contracts, which do not appear on the balance sheet.

The Barrett Capital Group provides lending, leasing and advisory services. Barrett Capital Corporation is a specialty finance company focusing on financing Co-op underlying mortgages, lines of credit and Condo loans, as well as financing other multi-family transactions. Barrett represents a number of banks providing funding for these types of transactions so that we can offer a wide range of very price competitive financing options to our clients, including difficult to finance projects. In addition, we focus on construction/bridge financing and funding energy efficiency projects for our own account, specializing in LED lighting retrofits, reduction in electric use, and fuel, gas and water savings. We are a “Lender Partner” with the New York City’s Retrofit Accelerator and a Participating Lender with NYSERDA in connection with the Green Jobs Green NY (GJGNY) Financing Program and incentive financing. For additional background information, please visit our website: To check current interest rates, go to the Real Estate/Co-op page. Please scroll down to lower right for a link to view current US Treasury Interest Rates. Since 1986. Barrett Capital - “Think Outside the Bank”.

Barrett Green Management LLC offers energy efficiency products and services including facilitation, consulting, and implementation assistance. Barrett Green specializes in LED lighting retrofits, master/submetering projects, co-generation, solar, reduction in electric use, and fuel, gas and water savings. Our diligent and creative team has more than 25 years of experience, and provides customized solutions that gets results at a price you can afford, with no upfront costs. All incentives are passed on to you the customer. Because there are so many different elements involved, Barrett Green can become the central point of coordination of all these elements and can serve as an Owner’s Representative and/or Project Manager. For additional background information, please visit our website: Barrett Green – “We Find You the Savings”.

Thanks for reading and we look forward to addressing other areas of interest in the months ahead. We welcome your thoughts, comments and ideas.

Barry P Korn, CFA

Barrett Capital Corporation

917-434-3000

November 9, 2016