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Reducing Fuel Costs 40%

65-65 Wetherole Street, Rego Park, N.Y. (146-unit cooperative)
Argo recommended replacing the deteriorating boiler and oil burner with a dual fuel gas/oil burner. We successfully negotiated for Brooklyn Union Gas to waive its $45,000 gas line installation fee and obtained the most advantageous billing rate. The cooperative is now saving over 40% on fuel costs. In addition, Argo coordinated the application for J-51 tax benefits, which resulted in a $40,000 real estate tax reduction.

Saving on Gas

The Summit Condominium, Rego Park, N.Y. (206-unit condominium)
Upon assuming management, Argo reviewed the utility bills and discovered that the owners were being billed at the highest billing rate for residential gas usage. We successfully negotiated with the utility to reduce the rate. This entailed installing an oil storage tank and dual fuel burner head, an expense that was recouped in less than 2 ˝ years. The unit-owners now save over 40% in gas bills.  

Creating a Positive Cash Flow

The Allendale, Jackson Heights, N.Y. (83-unit cooperative) 
Before Argo assumed management in 1995, the co-op had weak cash flow due to consistently late payments by the sponsor and a mortgage interest rate of 9.5 %. Argo achieved on-time payments from the sponsor and negotiated a 2% mortgage rate reduction from the existing lender, without any penalties, saving $42,000 annually. Argo also extended the term of the loan for four years at a new advantageous rate.  We obtained interest-free financing to upgrade the boiler to dual fuel capacity, resulting in a more efficient heating system and savings on fuel costs.  This cooperative now has a positive cash flow and is making repairs that had been deferred for several years. 

Finding a Better Way

35 West 82 Street, New York, N.Y. (30-unit cooperative)
Several shareholders were complaining that smoke and soot was entering their apartments. Upon inspection, it was discovered that this was caused by back up from the boiler’s breeching. Several contractors recommended relocating the boiler’s chimney, or modifying the damper system at a cost of more than $35,000. Argo’s central purchasing department through extensive inquiry and persistence found a specialist who discovered that an accumulation of hardened soot had clogged the breeching. The debris was cleared and the problem solved at a cost of only $350.  As owners and managers for over 50 years, we have learned to look beyond the “easy” -- and usually more expensive -- solutions.

Saving on Water

16 Hudson Street, New York, N.Y. (Retail stores)
Shortly after Argo assumed management of the commercial space, which includes a bank, restaurants and retail space, the owner received a water and sewer bill for $370,000 covering a 10-year period. The Department of Environmental Protection had neglected to bill for water usage for the entire period.  Argo brought in a consultant and worked with them to have the bill reduced to $70,000, an 80% savings to the owner.

Reducing the Monthly Maintenance

220 Madison Avenue, New York, N.Y. (197-unit cooperative)
In the six years that Argo has been managing this prestigious Murray Hill cooperative the board has reduced the maintenance by 8%.  This was largely due to the refinancing of the underlying mortgage, which lowered the loan amount by $1.5 million (due to excellent financial planning) at a 3% reduction in the interest rate. Argo was instrumental in obtaining a real estate tax refund of over $800,000, which replenished the reserve fund. The Cooperator has named this cooperative one of the top ten buildings in New York City!

Stopping the Leak

The Wedgwood House, 69 Fifth Avenue, New York, N.Y. (151-unit Condop) 
Like most buildings constructed in the 1960’s, this luxury building has central air conditioning comprised of an absorption machine and individual fan units in each apartment.   Over time, a problem developed with the condensate pans leaking and overflowing, causing extensive damage.  Argo was able to provide and implement a solution that was practical and cost efficient.  We identified a specialist who fabricated and installed new condensate pan liners and an overflow-alarm system so that a high-water situation would be identified and could be corrected before causing any damage.