Subject: Re: DuCool/Advantix - Rosemont Realty
From: "Eric Schwerin" <[email-masked]>
To: <[email-masked]>
Cc: "Michael Muldoon" <[email-masked]>, "Hunter Biden" <[email-masked]>, <[email-masked]>
Date: Mon, 15 Nov 2010 23:29:42 -0500

Great. Sounds really promising, Neil.  Let's add this to our list to discuss
on Wednesday.

On Mon, Nov 15, 2010 at 11:08 PM, Neil Callahan <
[email-masked]> wrote:

> 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)
>
>
>

-- 
Eric D. Schwerin
Rosemont Seneca Partners
(202) 333-1880
[email-masked]