SOLAR BUSINESS IS VERY MUCH LIKE THE REAL ESTATE BUSINESS, IOREBA EVENT ATTENDEES TOLD
Renewable Energy Resource is Focus of the Program at the 1st Annual Industrial Developer’s and Investor’s Night
ISELIN, N.J. – May 12, 2011 – (RealEstateRama) — With its financing, supply-and-demand, and regulatory issues, “the solar business is very much like the real estate business,” said Jeffrey Milanaik, President of Heller Industrial Parks. The venue was the 1st Annual Industrial Developer’s and Investor’s Night of the Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area Inc. (IOREBA), at the Renaissance Woodbridge Hotel.
“The title of our program asks the question, ‘How Can Solar Energy Help Industrial Properties?'” noted IOREBA President Sean Brady, Senior Director of Cushman & Wakefield, Inc. It can help the tenant in the building, the landlord market in their building, the environment and most importantly, it can help the NJ economy recover with jobs. The event was great, and we are elated with the turnout – in excess of 220 attendees for this inaugural event.”
“Solar works even on cloudy days like today,” Milanaik told the attendees. “And it involves very little maintenance.”
“Our company got into solar because we have always been very customer centric, and we constantly look for ways to help our tenants become more energy efficient,” explained Milanaik, noting that Heller launched two new divisions, HIP Energy Services and HIP Solar, to address portfolio-wide issues. “The question was, ‘how do we provide overall savings for our customers?’ We began with retrofitting high bay warehouse lighting fixtures with new T-8 fixtures,” and the company’s move into solar evolved from there. Heller’s target: 35 MW over the next five years.
One of the keynote event speakers was Avi Avidan, Managing Member of Avidan Management, LLC, which is a leading owner and manager of industrial and commercial real estate headquartered in Elizabeth, N.J. Mr. Avidan’s firm is the owner of the nation’s largest rooftop solar power system, a 4.26-megawatt system located atop a 656,255-square-foot facility it owns in Edison, N.J.
Avidan advised those contemplating solar to educate themselves before beginning any solar power installation project. Avidan stated, “We engaged in an almost two-year due diligence period, during which we studied our building, making efficiency upgrades in areas such as lighting fixtures and insulation, and meeting with numerous solar manufacturers and installers to ensure that we worked with the right partners.”
“This due diligence period was time and money well spent because it ensured we would have a solar power system that best fit our building and maximized its efficiency. Our system will produce enough electricity for half of the building’s massive consumption needs. The building’s annual electricity bill totaled some $1.2 million, so we and our tenants are looking forward to some very considerable savings,” added Avidan.
Noting that another primary goal was to make a building “more attractive to retain existing tenants and more marketable to future tenants,” Avidan explained that, “this is a long-term investment. We expect to get our money back, and we are considering installing solar on two of our other buildings.”
Citing state support for the solar effort, “New Jersey has developed what is the model for solar power in this country,” Milanaik said, noting as well the recently formed New Jersey Renewable Energy Coalition. “We’re going to Trenton,” he concluded.
“Solar is a tool that represents an opportunity to derive additional revenue for your business,” said Ryan Marrone, Counsel, of the law firm Szaferman, Lakind, Blumstein and Blader. “The interesting thing about solar, is that in addition to the energy efficiency, financial opportunities, and so forth, it can serve as a great sales tool for real estate brokers. It represents an opportunity to differentiate themselves amongst their peers by helping to educate tenants and owners as to the benefits.
“There is a tremendous amount of misinformation out there preventing owners from pursuing solar,” Marrone concluded. “It is very beneficial in terms of tenant incentives to improve tenant retention and stability, and there are creative solutions in terms of technology and financing options that fit anyone’s objectives.”
Next on the event calendar is the 2011 Jeffrey Siegel Memorial IOREBA 42nd Annual Golf & Tennis Outing. Slated for Monday, June 13, at the Essex County Country Club in West Orange, N.J., the event will benefit the New Jersey Food Bank through the “Move for Hunger” program.
With roots dating back to 1927, IOREBA is one of the nation’s largest regional commercial real estate groups, growing to more than 300 members conducting business in New Jersey, New York, Pennsylvania and Connecticut. The organization has continually expanded its offerings, designing more useful programs, and teaming with co-hosts for several events to improve the networking environment. To assist members in difficult economic times, IOREBA has also cut costs for events and membership to ensure that members are able to take full advantage of everything the organization has to offer.
If you would like to become a member, please go to our web site, www.IOREBA.com, for an application and instructions. If you have any questions, please e-mail David Simon at david.simon (at) cassidyturley (dot) com.
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PHOTO CAPTION: Left to right, at IOREBA’s 1st Annual Industrial Developer’s and Investor’s Night, are: Ryan Marrone, Counsel, Szaferman, Lakind, Blumstein and Blader; Sean Brady, IOREBA President and Senior Director of Cushman & Wakefield, Inc.; Avi Avidan, Managing Member, Avidan Management, LLC; Jules Nissim, Senior Director, Cushman & Wakefield of New Jersey, Inc.; Jeffrey Milanaik, President, Heller Industrial Parks; Bob Martie, IOREBA Secretary and Executive Vice President of Colliers Houston & Co.
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