Developing a Responsible Long-Term Financial Plan
Problem: With inventory dwindling, how do you wean a 300-unit coop off its dependence on sales of its owned apartments to finance operating expenses?
Solution: Working with the newly elected board of directors, Argo’s Controller prepared a five-year operating budget with two important goals: reducing the property’s reliance on revenue from apartment sales; and implementing gradual, reasonable increases in maintenance charges. In addition, Argo was instrumental in helping the property save $60,000 in annual insurance premiums by aggressively obtaining competitive quotes through Argo’s insurance consultant. We then worked with the Board to refinance the building’s mortgage in order to take advantage of lower interest rates to decrease monthly payments and free up capital for an extensive Local Law 11 façade renovation. Argo advised and assisted the Board throughout the bidding and permitting process, and oversaw this complicated project, which included extensive restoration of the catwalks and terraces.