Allied Renovation offers innovative repair financing

Real Estate Weekly, Nov 17, 1993

When the value and structure of some of New York's most prestigious cooperative apartment buildings is doomed due to financial concerns, it was Allied Renovation Corporation to the rescue with a progressive and innovative financing program.

Allied Renovation Corporation, one of the leading waterproofing and restoration firms in the Northeast, has the solution to one of the biggest problems New York cooperative apartment buildings face: how to afford the major renovations and restorations their property requires.

In a unique program designed to help cooperative home owners protect their investments, Allied is providing financing for roofing, waterproofing and restoration work. Since the program began three years ago, Allied has been contracted for jobs ranging from several thousand dollars through 1.5 million dollars.

"Today there are many cooperative apartment buildings and housing communities of all sizes that require immediate restoration work, but don't have the funds to pay for the required work," according to Robert Amrhein, Allied Renovation Corporation's Vice President of Operations. "Allied has been providing financing for this work, enabling qualified owners to protect the value and structure of their investments."

In most cases the culprit and cause of facade and roofing damage is water. Water damage has been responsible for 9 out of 10 emergency problems. "A $1,000 job can become a $50,000 job if not addressed immediately," said Amrhein. "Band-aid repairs or improper repairs will provide temporary relief, but will continue to cause additional costs and headaches year after year; by taking care of the whole problem at once, the work is done at a savings and provides peace of mind for the years ahead."

In the case of Forest Park Crescent, a 21-story cooperative apartment building in Kew Gardens, Allied was called upon for emergency facade restoration services. Forest Park Crescent had received touch-ups through the years, but due to budget considerations, planned to make the required repairs over an extended period of time.

Water had entered the cracks within the concrete that composed the external facade of the building. As the temperature outside dropped and the water between the cracks froze, the concrete cracked and spalled, causing pieces of concrete to fall out and the integrity of the outside skin to be damaged. This external damage if not addressed immediately, would penetrate the inside of the building leading to the complete demise of the structure.

After learning of the financing program, the co-op board turned to Allied for approximately $400,000 in financing and was able to complete the repair of its facade, tiers of terraces, and a new roof installation immediately.

Allied's financing allowed the building to pay for the work over an extended period of time with a modest increase in monthly maintenance and saved the co-op board headaches year after year.

Allied's innovative financing program is already revolutionizing the industry and in coming years an increasing number of cooperative boards will turn to Allied for assistance in protecting their investments.