Capital Improvements

Purchased two new 750 ton chillers for $500,000 for a downtown Los Angeles office building. Applied for and received a utility company rebate in the amount of $301,000.

The purchase was amortized as an operating expense to the tenants. The electricity savings averaged $9,225 per month.

This improvement was done at no net cost to ownership and the tenants received a benefit through lower net operating expenses.

Collage