Real Estate Leadership Podcast: Julio Interviews Robert Politzer, President & CEO, LEED AP at GreenStreet

In this episode of the Real Estate Leadership Podcast, Julio discusses with Robert Politzer about the Real Estate sector, lending, investing, and much more.


Intro 0:06
Welcome to The Real Estate leadership podcast hosted by Julio Gonzalez.

Julio Gonzalez 0:18
And this is Julio Gonzalez with the real estate leadership podcast. This week we have a special guest, Robert, with Green Street calling down in here from New York, Robert.

Robert Politzer 0:32
It's right in New York City.

Julio Gonzalez 0:34
Okay, and how's everything in New York City?

Robert Politzer 0:38
Well, things are certainly improving quite a bit. It's been quite an amazing three months. I can't even tell you what the experience has been, like walking or riding a bicycle or driving around Manhattan when there's been very little if anybody on the streets it's just been really truly an amazing experience. But we're coming out Have it like the rest of the country. And you know, New York City is a very, very, very strong, resilient place, we will definitely come back even stronger than we were before, I'm sure.

Julio Gonzalez 1:10
So, Robert, tell us about yourself. Tell us about Green Street. Tell us what you're doing there in New York City.

Robert Politzer 1:17
Sure. So, I'm currently working on Green Street NYC, which is a real estate Innovation Hub. It's the it's really the combination of the last 20 years of my work in commercial real estate in New York City. And starting in 1989, I started the first green building company in New York City, and did general contracting and some other kind of clean power installations for quite some time. This was way back before there was LEED before they at that time, there was one green building supplier in New York City for quite some time. And then about four or five years ago, we started to transition more towards real estate development with again, a specialty in high performance green building. And over time. I met up with personally a number of really innovative, clean building related clean technology, product and service providers and started developing a kind of a specialty network in that regard with these vendors and utilize these vendors on our various projects, and then essentially, evolve that program. As a, as at the time we were calling it a smart building upgrade program that we're offering to commercial property owners as well as again using it on our own projects. But then, I kind of personally got pulled into some other real estate development work so I'm developing some special needs housing projects in Both Florida and New York got into invested with a multifamily project in Baltimore have a whole multifamily program going on there. But last year, in 2019, the city of New York passed what's known as the climate mobilization Act, which includes actually three local laws, local laws, 9294 and 97. And of those three, local law 97 is what is critically important. And essentially what local law 97 requires is for any building any privately owned commercial building about 25,000 square feet, to cut its carbon emissions by 40%, starting in 2024, and completing in 2030, and then an additional 40% over the period of 2013 to 2050 as the whole the whole grid upgrade to a much cleaner portfolio. So That was a game changer. And not only is it a very, very comprehensive, probably the most aggressive climate mitigation program in the world, but it's got very, very strong fines attached to it. So frankly, for the first time and doing this kind of work, I you know, actually have the wind behind my back. It was always a bit of a of a uphill battle with property owners in New York City to talk about anything green. And to that regard, by the way, over time, I started to realize that really a green building built, designed and built properly was a smarter and a superior performing building. So for quite some time, I've been saying substitute the word smart for green. So at you know, fast forward brought in some additional strategic partners, including constellation energy, and we now have a cost free compliance program for New York City property owners who would otherwise be facing A compliance that could be compliance program that could cost them thousands or hundreds of thousands of dollars if they go a conventional route. In fact, the real the real deal estimated that the cost of compliance for New York City property owners would be on the order of $20 billion. So we have this cost compliance program in conjunction with constellation energy. They're the largest Gas and Electric supplier in the country, and they've got a program called EMP. Efficiency made easy. So efficiency made easy now is an integral part of our program. And long story short constellation energy will provide 100% financing, off balance sheet financing for all energy efficiency upgrades and clean power work. As part of this program, just as long as the client will sign on for either gas and or electricity supply through the parent company. It's a fantastic program has been around for 10 years. They've been upgraded Hundreds of thousands of square feet of commercial office and building space through this program. So that's, that's central to our program. And I could go on and tell you about the main elements of the program but so our hub then offers it's essentially a real estate development and real estate brokerage offering we offer New York City real estate listings, commercial listings, all of which will have to be will have to follow this compliance program and we offer our program with those listings. real value add. We also do our development projects we do coat co living and and special needs housing. So we offer our investors listings. We offer investors, investment opportunities and development projects and then with our leading edge vendors. We are also going to be offering private equity investment opportunities into those vendors who are working on our compliance program. So it's a A lot of what we're doing these days.

Julio Gonzalez 7:02
So can we walk through the numbers? I mean, say I have to be compliant. And the only way to do that is to spend a million dollars on upgrading my buildings energy efficiency to comply with the new rules. And so I know that's a million dollar spend, how does that work under your program?

Robert Politzer 7:23
Right. So how it works under our program is if I can kind of step back now and give a kind of a quick overview. Our our program has three phases to it. In Phase One, we begin with no cost and no obligation services that we offer, including your By the way, who the hell this is one of the ways that we're working with with you and your firm is through through all the great work that you guys do. We will offer a attacks strategy assessment, exactly what you guys do. Right. So we'll introduce you folks to our clients who are interested And as you know, most clients have leave a lot of money on the table with all kinds of tax strategies that they weren't aware of, you know, especially the especially with the specialty tax strategies, the r&d tax credit is something that people often leave on the table, as I'm sure you know, the 179 D program with, you know, EPA 179 D is oftentimes left on the table because of all the efficiency work that's required to get there. But our program gets you there. So it's a it's a complete match. So we start out trying to save our clients money with no cost, no obligation. We offer up your services we offer up we work with a company called national utility refund, they provide a no cost professional utility audit, and when they find savings, they split the savings 5050 with the owner for 24 months, after which time, the owner it's all free money for the owner. So Phase One is is saving the client money. And in my experience, there's almost always ways to do that when you've got a good talented team together so that's what we do in phase one, phase two then after we've saved the client some money, phase two is when we engage with constellation and then me program. That's when the client now of course, presumably more comfortable, and confident in our ability to perform as we as we promise. We then sign on for a gas and or electricity supply contract with constellation constellations Emmy program is so flexible, it's one of the reasons that it's it's really so valuable. So for example, constellation, you know, nine times out of 10, they find themselves in a scenario where the where the client is already obligated under a supply contract. You know, maybe it's a year maybe it's 15 months. So what constellation will do is they'll They'll post date their contract for when the existing contract ends. So there's no conflict there, which could be even up to two years in advance. But amazingly, this is great.

They will finance 100% of all of the soft and hard costs for the energy efficiency upgrade of our phase two. They'll do it from day one. And it's all their money. It's not it's not a bank loan. So there's no lien on your property. And it's all internal financing that they provide. It's amortized over three to five years, it's usually in the order of five to 7%. So you as the owner are not going to have to be cutting a check up front. For for, you know, any of these energy efficiency services, including the audit that we will conduct at the beginning of phase two to determine exactly what we need to upgrade to get to the country. Have performance metrics that we need for compliance. So that's phase two, we've now made the building we've hopefully in phase one, we saved the client money, no cost, no obligation. phase two, we got them signed on for a competitive rate with their gas and electricity supply, and we got them 100% financing for all the energy efficiency work. Now then after we've made the building more efficient is when we move into phase three. And anybody I've been involved with you this this industry, like I said, for over 20 years, and anyone who's involved in this industry, from an engineering point of view, will tell you that before you start to apply any kind of clean power technologies, like solar, wind, geothermal, what have you, you always want to make the building more efficient. First, you want to lower the loads first, because energy efficiency is always the best investment. So after we've made the building more efficient after we've lowered The heating and cooling electrical loads. Then in phase three, we apply in the most efficient manner possible and array of cost effective state of the art clean power technologies. So, and you know, there's an array of new technologies coming on all the time. Okay, so phase three, then again, we using constellation energy, constellations, financing 100%, for all the engineering and installations, we will install all these state of the art cutting edge, clean power technologies, so that so that will, that should get us very close to compliance if not over the line. And then the beauty, of course, with a lot of these clean power technologies is that they have a payoff they have a payoff time. So usually, they get paid off in anywhere from five, maybe three years to seven years max. So after that period, you've got positive cash flow coming from these technologies. So that's actually going to be adding value to the property. over time. So now if we don't get all the way over the line for the required compliance, one of our strategic partners works in carbon trading, and carbon offsets. And under the law, a client can offset up to 10% of their required carbon reductions through some kind of program of carbon emissions or carbon carbon trading. So that's how we get folks over the line. And in the process, then, with little it with no out of pocket cost up front, we've, we've saved the client money, we've increased the energy efficiency, lowered operating expenses, increased building valuation, so we've added value. And then we've added we've added additional net revenue streams from some of these clean power technologies. I'll give you a perfect example. One of the things I'm really super stoked about so there's Uh, you know, in commercial construction these days, it's very rare that you have a structural wall anymore. It's almost always curtain wall, right? Like glass walls. Well, there are no there are now solar electric curtain walls. Especially if you got a good south facing view like down in Miami for God's sakes, all over the place, right? So over the payback for these systems are usually two to three years. So you can turn your glass facade into a net revenue stream over time by using that kind of technology. And the last thing I want to say that this has also been near and dear to my heart is that I told you I've been working with and being introduced to leading edge clean tech vendors, products and, and service providers, and this from all over the world and we have an ongoing process of onboarding and vetting new state of the art vendors Who and it's a field that's rapidly changing. So this is part of the value add of our hub is to be bringing the best and brightest vetting them. And then, you know, bringing them into the fold getting them involved with our projects. And once we know them and trust them, well, then we can offer these folks up as as for a private equity investment for those who are interested.

Julio Gonzalez 15:22
Well, that's a tremendous let me start with phase one. You know, obviously, we know, you and I both know a little bit about the tax law and, you know, obviously, we have tax incentives, federal, state and local, that encourage energy efficiency within buildings and the tax incentives are there to increase the payback, you know, period, and sense of getting it, you know, a shorter period, but also, you know, obviously taking a lot of stress off of the US energy consumption market. So, you know, and you know, like you and I've been around this a long time back in 2000 When the energy tax credits came out, and the tax laws came out, pretty quiet, right? No one was taking advantage of it. No one really cared about the payback, because, you know, they were just passing on the expense to the clients. And so, you know, there wasn't that much motivation, although, certainly your buildings worth more value if you have less expenses, right. So it makes sense. And the tax incentives are there to help with that payback. But it sounds like now, like that phase one audit, we're going to find a lot of tax benefits, credits, deductions that are going to help with the payback will have some charitable contributions of the assets coming out and some disposal tax credits as well. So that combined with some research and development right that we talked about, structural right off. So we do that and that's a big part of the map right now. We've you brings substantial value right now. This payback, whatever we're looking at, is cut in half, maybe a third because of these tax incentives. But phase two, you know, when we do this upgrade, I would think that, you know, we're gonna have this payment, right, we're gonna have this payment for five to seven years to coming in and putting in the technology to become compliant, but we're probably gonna have a lot less cost and energy monthly.

Robert Politzer 17:23
Yes, and so, right. And that's, that's so a point of clarification here. So when we, when when we are saying that we provide a cost free compliance program, what that means is we bring 100% financing. Okay, now, whether it pencils out as net net, no extra cost to the client will depend on on a couple things. First of all, obviously, we're gonna be so we'll be financing the cost of all these upgrades. So there's Going to be a financing cost, again, just 7%. So now, if when our work program works really impeccably, our cost savings that we provide through all the energy efficiency upgrades will be will be enough, if not more to pay for all the financing costs, right for the for the upgrade. So now the wisdom of our program, though, is that, you know, listen, some clients might actually want to have all kinds of extra bells and whistles are throwing in who knows, right? And we can finance at all, does that mean they're going to be net net cost costs, you know, free. It'll depend on what the value of the efficiencies are. But in addition, this is where our phase one comes in. Because, you know, Julio, you're you and your firm are, you know, you're masterful at finding all kinds of savings, right? savings that any clients didn't even have an idea of, not only We all that's true of our we've got, we've got an insurance group, they've been in business for over 40 years, they have a similar store, they can find all kinds of savings, you know, with insurance policies, especially commercial insurance policies. And same thing with our utility audits. So the savings that we can provide from phase one, with no obligation could also go to defray any of those extra costs that might exceed the, you know, the financing costs that might exceed the savings from the energy efficiency upgrades. So we've gotten away is a banging of beating down debt at extra cost. So that in fact, we will provide a truly, you know, cost free program, which is pretty extraordinary. I have to tell you, you know, I've been around this business for a long time. And, you know, it's a pretty extraordinary program.

Julio Gonzalez 19:55
Yeah, it seems like it's so we're getting tax credits to help with the Really the capital associated with the purchase? We're getting lower utility rates potentially. And we're getting insurance rates reduced possibly. As you know, we're definitely going to have lower utility rates at lower consumption. So, ultimately, you know, that should pencil out to be fairly immediate payback. Sounds like,

Robert Politzer 20:26
absolutely, and not only will all of your work help out tremendously, but we haven't even talked about the array of additional state, local and federal incentives.

So like, for example, NYSERDA, New York State Energy Research and Development Authority has a whole number of financial programs to help to mitigate the first cost of studies or have even have some, you know, clean power installations. So between all of your work and our utility auditing, and our insurance broker doing their thing and our construction manager that that manages all of the financial incentives. You know, I'm also a real estate developer. And and I can, I can say to you in all in full confidence we do that we are providing top value to our clients. And again, this is a program we use for our own projects. So, you know, something that obviously we believe in.

Julio Gonzalez 21:28
Listen, I want to add one thing real quick. I mean, you know, we've been putting the 5g antennas on the rooftops for property owners generating upfront payments from the sell companies of over a million dollars.

Robert Politzer 21:42
Yeah, it's a great idea. Just that was not on my there you go short. Oh, it's gonna it'll be huge.

Julio Gonzalez 21:50
Yeah, listen, we, we, you know, we, you know, basically have a program now, where, you know, we've been going out to our real estate investors and 5G Technology, you know, it has a higher frequency and it travels a lot shorter distance. So now they need all these antennas on many rooftops as possible and they're willing to pay 15 year lease up front to have the privilege to be on the roof. And and I would guess that even that cash flow will pay for this and more. Right. So I just said to me,

Robert Politzer 22:25
yeah, that's, that's,

Julio Gonzalez 22:26
yeah, that's great. Let's make sure me and your, again, the rooftop 5g antennas on the roofs to make sure that it more than covers it.

Robert Politzer 22:36
You know, that's just another value add that we can bring to the table and I love it, you know, the more the better the more tools in our toolbox, the more innovative and to the point of what we're really doing here in New York. We're creating a real estate Innovation Hub. Yeah, bring that to bring together the smartest you know, the the highest prick practitioners, the best practitioners As the smartest impact investors, right and imagine getting together this, this state of the art, you know, at least these are constellation energy, RCM firm. All of these vendors that are from all over the world investors that are impact investors, folks like you, as we get this churning, it's going to be a hub of activity. And we're really, really exciting. We're also by the way, going to have a very strong media program, we're going to have a YouTube channel. So I'm going to be turning the tables on you, my friend. And I'll be interviewing you sometime very soon. And we would also love to include any of your videos or your or this is podcast on our site over time. That's something we can work on. So yeah, lots and lots of synergies between us. And I've got it I've got a couple of very large developers that you probably know down in Miami, but in case you don't, I'd like to introduce you to them.

Julio Gonzalez 23:55
That's wonderful. And you know, what we also have to think about for the real estate community This may be the year more than ever to get the property taxes reduced as well. You know, you know, so let's find those savings in your hub. Right, get the antenna up there get some revenue for 5g for leasing the rooftop. Let's get the insurances down. I mean, this is now let me ask you so you provide all these benefits? Is that audit? You know, for insurance? Is that no cost? no cost? credible? Who was? Who would who wouldn't take a look at this. Now, let me ask you. This law 97, right. Yes. Are people aware of it are people I mean, they must be going crazy in New York. How are they going to comply? How are they going to come up with all this expense? I got an old building. How do I make it energy efficient?

Robert Politzer 24:47
Well, you know, oh, it was it was announced last year. It doesn't officially kick in until 2024. So they're giving a period for people. Get ready. You know what? The beauty of our program again, you'll excuse me for being unabashed about it. But yeah, is there's no reason to not get started with us.

Julio Gonzalez 25:11
Absolutely no reason. You don't want to wait to the last second,

Robert Politzer 25:13
why do you want to wait to a second, but more, we're going to save you money right now with all of our upfront phase one services, introducing your firm to clients. And then in the end, our utility

Julio Gonzalez 25:24
money, I guess, yeah, so many people I got to introduce you too.

Robert Politzer 25:27
Oh, that's great. Um, yeah, we'd like to do a webinar with you also.

Julio Gonzalez 25:31
I mean, this must apply to hotels there too. Right?

Robert Politzer 25:34
Absolutely. And hotels, of course, are desperate. They're, you know, the other beauty you know, the off the off balance sheet financing. As a tax person, I'm sure you'll appreciate this because especially larger hotels that have the ability, excuse me, have the ability to borrow are going to need to be keeping their balance sheets as clean as possible to get as much you know, Borrowing powers they can. So the off balance sheet financing is really, really a nice feature as well. you'll excuse me, I got a call coming in.

Julio Gonzalez 26:09
That's okay. People are calling and I understand that you have to save money. So, look, I mean, this, does it apply to multifamily? I know you said there's a square footage requirement is zoned commercial as residential.What is it?

Robert Politzer 26:23
Everything over 25,000 square feet with the exception of public institutions, museums, cultural institutions are not you know, but they're going to be there's there's gonna be other ways in which those facilities will be upgraded. But it's not strictly speaking not covered under this law, but yes, multifamily rental properties absolutely covered.

Julio Gonzalez 26:47
So all that is it is a certain section of New York. Is it all New York,

Robert Politzer 26:54
New York, New York. all five boroughs.

Julio Gonzalez 26:57
all five boroughs? Yes. Okay. Well, is this going into other states too? I mean, other states gonna follow suit or they already have or?

Robert Politzer 27:06
Well, we there? it? That's a great question. So our hope, especially since we're doing this in New York, is that, you know, give us give us, uh, you know, six months to a year of running this program, and we're going to be really, really, really, really our capabilities are going to be, you know, outstanding. And so our hope is then to export this model to other large urban centers and constellation works all over the country. So after after New York, and let me let me step back for a moment out. Anywhere that constellation works, we can offer this program, basically in entirety, most of our vendors, our main vendors up front their national vendors, so instead of calling it a cost free compliance program, we just refer to it as a cost free upgrade program. So anybody That constellation does business. We can do this program we can run this program, I will say so for example, though, ironically, they're not in Florida. They're not in Florida because because down there you guys got, you know, the electric utility that that you don't have. You don't have free market for, for electricity, you've got it for gas. Right, right. Right. electricity. So that really dings the what they can do down there. But wherever they operate, so Chicago, for example, I'm from Chicago originally, well, definitely in Chicago, Boston, all the big urban centers are going to are going to need this program. And I also expect that New York City such a trendsetter that other cities, once they see what New York has done, will start to implement similar kinds of programs and, you know, simple kinds of laws and our program will be right there to provide that compliance.

Julio Gonzalez 28:56
How did the law come to be, what what was the stimulus for .

Robert Politzer 29:02
Oh, well, um, boy, uh, you know, New York is such an interesting place. It's this mixture of, you know, the world leader in, you know, in finance and, you know, capitalist enterprise. And at the same time, it's the it's the world leader in social and environmental issues in many ways. I mean, we've got the UN here, you know, we've got a very, very, it's a very, very strong active community in New York City, around around sustainability issues. And, you know, so now, whereas it's kind of like if you grew up, you know, when I was young to think that New York City ever, ever, ever in my lifetime, we'd have a sustainability program was like, impossible, right? Well, they got transformed quite a bit. In fact, in fact, many Bluebird was very had a very, very strong program, a green program, upgrade program. He did a lot of tremendous work. He really got the ball started. As a matter of fact, it was really Bloomberg, who got sort of New York City sort of, you know, green upgrade. He pulled together some different programs and he was really big on it. He did some great work. And then the next mayor just kind of built on that and then along with, you know, just the, with the Paris accord and all those kinds of international pressures. And the fact that the mayor is very strong and these issues also, you know, just politically it came together for them to pass this law. There's definitely some pushback. No doubt, there's, you know, I think Boma is building owners and managers Association I believe is lobbying Albany to water down the bill. You know, and and again, Because as far as they know, they know convention, you know, they know that. Well, if I'm going to deal with this, I'm going to probably have to just call it my engineering firm. And get them started, you know, because what do I know about this? My engineering firm, they know it all. So, so these property owners will go down this road, and they'll start out spending 5100 $200,000 with their engineering firm, and then they're on their way to spending all kinds of money and you know, maybe maybe this firm can can help them with the, you know, on the finance side. And over time, New York City has a program to increase what's called PACE financing. Yeah, all right. They're going to be increasing PACE financing, but there's still even the problem with PACE financing is, how do you get your hands on that money? How do you access it? That's a whole other kind of consulting activity. And that's where it's another element that got that really needs to be programmed properly. That's where I kind of have a holistic compliance program really helps. Yeah.

Julio Gonzalez 32:02
I mean, when you save money, your value of your property goes up. I mean, all about our profit.

Robert Politzer 32:09
And in the end, you know, in my view, as a developer, there's nothing more there's nothing more valuable than lowering operating expenses, because then that's a permanent, not only is it adding value, but it's it's increasing your cash flow. So, you know, that's why it's such a shame for owners to be owners to be looking at it this way. They're looking at it as a as an expense. What if this is done, right? This is an opportunity, a huge value, add opportunity. That's what I'm trying to convey to folks. Our program is a value add program, we will definitely add value to your property and your business by virtue of our program. I cannot say the same for again going down a conventional route. And you know, so

Julio Gonzalez 32:58
And like you said, phase three Some of the alternatives and you said now we have solar curtain lawn I guess some other technologies. So what's, what does that look like? Okay,

Robert Politzer 33:09
I want to give you a perfect example of you know the innovative angle that we have. So a couple years ago I was introduced to a company out of Arizona. And they produce a solar thermal technology. So when people think solar they always say think, usually think solar electric solar, Evie, photovoltaics. Right? Well, it turns out that the the first solar technology was not solar PV it was solar thermal. Solar thermal is just heat collection. That's all it is. But once you collect that heat, you can make hot water. Once you collect that heat, you can turn a turbine there's all kinds of things you can do with with heat when you collect it. This company in Arizona they integrate their solar thermal system. It's a patented system. them with h fac systems heating, ventilation and cooling systems. So rather than just using it to produce hot water, which is how solar thermal is oftentimes used, they use it to actually drive down the energy requirements for the condenser unit in the age tech system, so the lower the electric power requirements by about 30%. And that's a direct savings. And that's great, right. But here's the real kicker, because the solar technology is covered under the federal tax credit for renewable renewable energy tax credit. Yeah, by virtue of linking this system to an H vac system, it's considered now to be one whole system. And you'll love this, the entire cost of that h fac would fall under the tax credit so 30% of the entire system would be realized as a tax credit, rather than just for the solar thermal, because they leaked it to the system. So somebody wants to upgrade their new put a new HSS on the building, that's this is a no brainer. So we have this is what's happening in the field, the field is rapidly advancing. But if you're not, like, you know, sort of clean tech geeks like us and you're always on top of the pulse, you're gonna be missing a lot of these opportunities. So that's another value add. We bring his work we're in, we're in constant contact with folks from all over the world.

Julio Gonzalez 35:31
That's fascinating what other clean tech tools are out there.

Robert Politzer 35:36
Oh my gosh. It's just it's growing and expanding. Like I said, every day there are there are so many. So there's a there is a you know, metering for example now is required. It's required in New York City under one of the local laws on it, you know, so it's real time metering and monitoring. So it's, you know, up to this time, it's been a pretty expensive proposition. We were just introduced to a company out of Toronto, that they, their meters are about a third the cost of most of almost all the vendors in the marketplace there. It's real time, which is also almost unheard of the real time monitoring and metering I'm sorry, and then their monitoring program is tremendous. So it's used utilized in all kinds of ways to lower energy efficiency. There are you know, I could go on and out there are all kinds of new solar electric. Now with these new solar panels coming online that are that are more efficient. There are there's a company out of Germany we're working with that a problem with conventional solar panels is that they are wired together in series. So if one little pirates have one of those panels that's in a series is shaded it can knock out all the electric power production from that entire panel and sometimes even from other panels that are connected to it so there there's a company now in Germany I met with them in New York, they have they use micro this these these type of technology whereby each individual cell in the indie the electric panel is isolated. So if that one little cell is shaded, it does not do anything to the power production of all the other small small cells in that panel. So that's that's another example it's just you know, it's it's coming on so quickly. You know, I could go on and on that just was introduced to a new wind technology, super quiet can be utilized for commercial construction be great diamond, Florida, for example. Yeah.

Um, there's all things that were really big in vertical farming By the way, in vertical farming is being connected to buildings and all kinds of interesting ways. And you know, so there's just so much to talk about that way. That's one of the things that I'm so what I love so much about this is I just love this industry. And it's it's, it's we're really at the cutting edge and frankly, Julio, we are at the early stages of a clean tech in industrial revolution.

Julio Gonzalez 38:29
super excited. Yeah. Yeah, exciting. So, you know, I think, you know, when we, I guess we're just scratching the tip of the surface here, right? It sounds like but let's summarize this for everyone. You know, so phase one. We're going to find federal, state local tax incentives, tax credits, write offs, things that help generate a quicker payback through the phase two audit, lower pricing on utilities lower insurance rates. All this lower consumption. And now we've got hopefully a payback almost immediately on the basically free cost to get to 97 compliance. And then on top of that, come in with 5g rooftop alternative energy sources, and ultimately optimized clean tech, you know, efficiency within the building.

Robert Politzer 39:29
Yes. It all done with 100% financing from the largest gas and electricity supplier in the country.

Julio Gonzalez 39:39
That's incredible. Well, look, I mean, we probably have to dig deeper and probably do some more of these just to make sure that we are covering it, all of it. But certainly this is going to be meaningful and educational to our network here our real estate clients. So how to How does everyone get ahold of him?

Robert Politzer 40:03
Yeah, we're just launching a new updated site. It's Green Street NYC calm. And that'll be the best way. And there's multiple ways once you come to our site, it should be officially up in about a week, by the end of next week should be officially up. We've added investor portal for our real estate investments and for development projects. We have a LinkedIn group. So folks can join our LinkedIn group and start networking with people right away. What's your long term called? It's going to be Green Street NYC.

Julio Gonzalez 40:40
Yeah, I saw that look great.

Robert Politzer 40:42
Yeah, it's, it's, it's, it's coming along. It's all going to, like I said, within the next week or so it'll really, really, really come together. And so by the way, just, you know, I mean, we were we'd been operating as Green Street of New York for the last, oh, 815 years or so. And So Green Street NYC, as I said, is the evolution. And it's really reflective of the fact that, frankly now I just want to be, I wouldn't be working mostly in New York City, we want to be doing most of our work here because it's just there's so much work to be done here now, especially with local on 97. So Green Street NYC is our updated, you know, laser focus on on this kind of work in New York City.

Julio Gonzalez 41:24
Wow, we're super appreciative. And I'm glad that you know, you share that information to allow everyone to get ahold of you and, and join the website, join your group, you have the private group, you have the LinkedIn group. And, you know, there's, there's no choice in New York, you got to do it in the five boroughs. This way is the best way I agree with you. Like, you know, most people are gonna look at this and say, you know, we got to start spending a lot of money to figure this out. Yeah. And you got a better mousetrap for everyone. One that makes a lot of sense. And it sounds like you've accumulated some great partners to help pay for it. And that's significant.

Robert Politzer 42:03
Yes, yes. Especially now, when, you know, I you tell me, but I gotta believe that that big financing is is going to be problematic for a number of specially for you know larger hotels that are going to have to be taking out more debt stay alive.

Julio Gonzalez 42:21
Well, good points. So will this be an easier process than going through the bank financing program

Robert Politzer 42:27
really is more straightforward. You just basically have to get the approval of constellation. So they'll do a Delta they'll look at your you know, your financials like a bank will, but they're not going to ringer that a bank will.

Julio Gonzalez 42:42
Oh, that's, that's got to make everyone feel good. Absolutely. We know what it's like to go through a bank and your real estate investor,

Robert Politzer 42:49
especially how,

Julio Gonzalez 42:50
yeah, the banks won't be lending money anytime soon. I don't think so. Well, great resource. So listen, let's get get back. Have you back Next month to see where we are, you know, bring an update on the website. And I think that'll be really helpful and I appreciate you taking the time to be so informative and educational to our group today.

Robert Politzer 43:13
Oh, sure. It's my pleasure. Thank you so much. I really alright.

Julio Gonzalez 43:17
We'll be in touch and we'll let everyone get ahold of you.

Robert Politzer 43:19
Great. Thanks a lot. Take care. Have a great day.

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