Subject: DuCool/Advantix - Rosemont Realty
From: "Neil Callahan" <[email-masked]>
To: "'Eric Schwerin'" <[email-masked]>, "'Michael Muldoon'" <[email-masked]>
Cc: "'Hunter Biden'" <[email-masked]>, <[email-masked]>
Date: Mon, 15 Nov 2010 23:08:19 -0500

Hey guys,

I spoke with Mike Mahoney today about developing a Retrofit Strategy/Program
for their current portfolio and building a model for any new acquisitions.

Ideally we can segment their 178 properties into a spectrum of categories
(from "must do" to "don't do") and to outline the 4-5 core technologies that
make sense as opportunity areas for commercial real estate and how that
aligns to the RSP portfolio companies and other companies we have
relationships with.

Here's where we netted out as a next step:

1.       Focus on one technology/area with one company so we can learn and
develop a retrofit program organically

2.       Ask DuCool/Advantix to evaluate all the properties that are in
DuCool's sweet spot

a.       South of DC and from Texas Eastward

b.      This includes about 1/4th of the portfolio (about 40 building) with
about 20 buildings in Houston, and more clusters in Dallas and Memphis.
(all the basis property details are on the website)

c.       The basic profile of their building are 100-200k SQFT, multi-tenant
suburban office, 25-30 years old

d.      Develop a recommended retro-fit plan and illustrate the cost/benefit
analysis:  what is the cash outlay to retrofit the buildings with DuCool
equipment, how many years to break even and what are the expected benefit
areas (lower energy costs, lower tenant turnover, higher resale value, tax
incentives, etc.)  Also determine the vendor financing programs that DuCool
offers or financing relationship they can bring to the table for a deal (GE
Capital, etc.)

3.       If the DuCool team needs more information, ask them to provide the
data points that they need for each property and we can work with Mike and
his team to complete.  Mike can provide the types of existing equipment,
current energy bills, etc.  We just need to develop a template to complete

4.       I also think this is an upsell opportunity - if Rosemont Realty
takes this on an initiative, I think we up sell a project manager FTE to
DuCool to manage the deal.  This would allow that FTE to build out an
overall retrofit strategy while being funded.

The ball's in our court.  If we can get this analysis done between now and
the end of the year, Mike would be in a good position at the beginning of
the New Year to evaluate and kick-off a program if the business case is a
positive one.  Mike will also be in NYC mid-late Dec - ideally we could have
this complete by then and brief him at that time so he can give comments and
directions for an additional review in January.

Let me know how you guys want to proceed.

Best,

Neil

----------------------------------------------------------------------------
--------------

Neil Callahan

Rosemont Seneca

401 Greenwich Street, Suite 400 | New York NY 10013 | 212-933-9965 |
212-796-4037

1010 Wisconsin Avenue, Suite 705 | Washington DC 20007 | 202-333-1880

917-945-9516 (mobile) 

866-749-8879  (fax)