Week 3 is a colorful week, this week I have done a lot of things: sightseeing of the landmarks of New York, NBC late night show scene, Stand up comedy show, Shopping and so on, New York is a city you can find everything, the company visits and guest speakers also give me a very difference view about New York City.
Recall from the 3rd Week, I will think about the Rubin Management, a private real estate company which rent or build real estate, then rent out to tenants and manage its real estate portfolio, Rudin Management uses advanced technology to monitor and manage the energy usage status of the building, making building smart saves Rudin Management big amount of utility, about 1 million saving per year per building. Rudin Management is not looking for the last dollar from the clients, they provide excellent service and user experience by providing clean, safe and efficient office environment, you take care of your business, we take care of you. They are using very conservative financial leverage, about 30% to limit the financial risk, their business are most concentrated in Manhattan, their business right now only in New York City, they are most probably will not go out of New York City until the decision makers change their minds, because they want to stay in the business that is within their reach, personally I think this is the limitation of this family business, they should think more broadly, but every business have its own strategy and logic. One more thing to pay attention is that they are not marking their asset to market price, when the market is good, no big problem, when market turns bearish, they need to have clear measurement of their risk and asset value. Overall, Rudin Management is a professional family real estate management company.
Another company I really like the the Brooklyn Grange, which is specialize in the rooftop farming, by taking use of the rooftops of buildings, Brooklyn Grange is turning them to organic farms, the rooftop farm also can help to reduce the temperature of the building in summer time, this is a good way to save energy. By placing the farm in the urban city, it not only saves transportation fee for the farm, and also can provide most fast vegetable and fruits to the city. Their financing way is quite impressive for me, they used very difference source of finance, such as taking 10 year debt by paying fix interests to Debt investors, also they sell their equity to investors, usually by selling 1% of share each time, this way they not only can lower down the investing curdle, but also can distribute the shares to different investors, making very different investors involved in the equity interests, they turned those investors to be the owner of the company, and they can leverage different expertise of the investors, such as a Lawyer shareholder already provide them legal counsel service for free, this is very useful way for startups to learn from. Brooklyn Grange are making economic and social impact to urban city, this is great example for other big cities to learn from.
The New York Module is already finished, but the things we have seen and learned from will benefit us for the whole life, while enjoying the exciting life there, we are also trying to capture the essence from it and investing in our future.
Goodbye New York!