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In this episode, Taylor interviews Aundre Oldacre, the managing partner at Aora Development, about sustainable development and its impact on the real estate industry. They discuss the challenges and opportunities of implementing sustainable practices, the role of incentive programs in offsetting development costs, and the importance of evaluating properties based on their sustainability ratings. Aundre shares insights into replacing gas boilers with sustainable alternatives and navigating regulatory red tape. The conversation also touches on the impact of high interest rates and the changing market dynamics in New York City. Overall, the episode provides valuable information for investors interested in sustainable development.

Takeaways

• Incentive programs can help offset the costs of implementing sustainable practices, but they may not cover the entire expense, leading to upward pressure on rents.
• Replacing gas boilers with sustainable alternatives, such as electric boilers or heat pumps, is a key aspect of sustainable development.
• Properties with a sub one Debt Service Coverage Ratio (DSCR) may initially have insufficient net operating income to cover mortgage costs, but strategic cost-cutting measures can improve the financial position.
• Evaluating properties based on their sustainability ratings can help identify potential red flags or opportunities for improvement.
• Rent-regulated properties may present additional challenges and considerations in terms of sustainability and investment potential.
• Sellers may need to adjust pricing to account for the end of tax abatements, and buyers must carefully evaluate the risks associated with these properties.
• Regulatory red tape, such as permitting issues and electrical service limitations, can pose challenges when making sustainable updates to properties.
• The timeframe for completing sustainability updates can vary depending on the scope of work and regulatory requirements.
• There are resources available for individuals interested in learning more about sustainable development and building their skill set in this area.