Rose's Draft #1 for 141 Willoughby is built off a smaller asset (239 units vs Axel's 284) yet carries materially heavier payroll, gas, and water/sewer, a richer management fee structure, and no CAM recovery on $9.57M of retail income. The four issues below frame the conversation we need to have with Rose before Draft #2.
Download PDF MemoTwo assets, normalized side by side.
Rose's Willoughby payroll (excluding leasing) is $708,293 heavier than the Axel budget — on a smaller asset, with overlapping union classifications that should align line-by-line.
Insight5 concierge on a 239-unit building is the headline number to challenge. Rose split residential vs commercial payroll, which obscures it. We should ask for the role-by-role wage build, PW vs 32BJ classification, and the coverage schedule that justifies 5 concierge FTE.
Willoughby carries 5 Concierge, 5 Porter and 2 Handyman FTE; Axel carries 1 Concierge, 4 Porter and 1 Handyman. The 6 incremental seats (shown below at $0 on the Axel column) represent roughly $651,000 of payroll that exists on 141W and does not exist on the comparable asset — the bulk of the $708K payroll variance.
| Role | 141 Willoughby | The Axel | Δ | Status |
|---|---|---|---|---|
| Superintendent | $199,521 | $184,091 | +$15,430 | May differ |
| Handyman (1) | $122,492 | $117,566 | +$4,926 | Should align |
| Handyman (2) | $122,492 | $0 | +$122,492 | Not staffed at Axel |
| Porter (1) | $113,836 | $0 | +$113,836 | Not staffed at Axel |
| Porter (2) | $102,409 | $99,681 | +$2,728 | Should align |
| Porter (3) | $102,409 | $99,681 | +$2,728 | Should align |
| Porter (4) | $113,779 | $110,621 | +$3,158 | Should align |
| Porter (5) | $102,360 | $99,681 | +$2,679 | Should align |
| Concierge (1) | $115,251 | $110,621 | +$4,630 | Should align |
| Concierge (2) | $103,611 | $0 | +$103,611 | Not staffed at Axel |
| Concierge (3) | $103,611 | $0 | +$103,611 | Not staffed at Axel |
| Concierge (4) | $103,611 | $0 | +$103,611 | Not staffed at Axel |
| Concierge (5) | $103,691 | $0 | +$103,691 | Not staffed at Axel |
| Resident Manager | $177,894 | $156,734 | +$21,160 | May differ |
| Total (all roles, incl. multiples) | $1,686,968 | $978,675 | +$708,293 |
Reconciliation pointPorter, Handyman, and Concierge wages should be identical across both assets — they are not. Super and Resident Manager are allowed to differ. The Willoughby build also omits Porter bonuses (~$1K/employee, ~$5K total) which should be added. Either Rose mis-built the Willoughby budget or mis-built the Axel budget — reconcile before Draft #2.
Rose's budget normalized to 239 units (the correct Willoughby unit count — Rose's draft showed 227). Electric reads in line; Gas and W/S do not.
| Category | 141 Willoughby | The Axel | Axel Adj. to 239 Units | ||||
|---|---|---|---|---|---|---|---|
| Residential | Commercial | Total | Axel | Variance | Adj. 239 | Variance | |
| Electric (gross) | $285,360 | $100,000 | $385,360 | $534,263 | +$148,903 | $449,609 | +$64,249 |
| Electric Reimbursement | $-190,680 | $-70,000 | $-260,680 | $-391,613 | ($130,933) | $-329,562 | ($68,882) |
| Electric (net) | $94,680 | $30,000 | $124,680 | $142,650 | +$17,970 | $120,047 | ($4,633) |
| Oil | $5,000 | $0 | $5,000 | $0 | ($5,000) | $0 | ($5,000) |
| Gas | $210,000 | $50,000 | $260,000 | $92,604 | ($167,396) | $77,931 | ($182,069) |
| Water & Sewer | $167,400 | $25,000 | $192,400 | $73,482 | ($118,918) | $61,839 | ($130,561) |
| Metering | $15,057 | $3,000 | $18,057 | $22,096 | +$4,039 | $18,595 | +$538 |
| Total | $492,137 | $108,000 | $600,137 | $330,832 | ($269,305) | $278,411 | ($321,726) |
Insight$260K Gas and $192K W/S on a 239-unit building looks like an escalation off a placeholder, not a billing-actuals build. Ask Rose for the ConEd / NYC DEP backup. The electric reimbursement structure ($260K offset against $385K gross) is working — Gas and W/S should be re-pressure-tested against the same discipline.
Residential is 50 bps higher; commercial is a $125K flat versus Axel's $375/month reporting-only arrangement.
InsightThe 50 bps residential spread is contractual — confirm it. The bigger question is the commercial structure. A flat $125K commercial fee on retail leases that are largely passive (long-term, NNN, anchor-tenant) is hard to justify against Axel's $4.5K/year reporting fee. We should push for a percentage of collections with a floor, or align to Axel's model.
Standard NYC retail leases recover real estate taxes, insurance, CAM, and utilities. Rose's budget books gross rent only.
Ask Rose forRent roll with SF, base rent, free rent period, lease type (NNN / modified gross / gross), recovery basis, and a CAM reconciliation if already issued.
Eight items tied to the four call-outs above. Grouped by severity.
Per Rose's build-up (excluding leasing), 141W carries 1 Super + 2 Handymen + 3 Porters + 5 Concierge + 1 community manager at $1,686,968. Axel budget is $978,675. Variance of +$708,293. Same labor market, same union classifications — Porter / Handyman / Concierge wages should be identical across both assets. Either Rose mis-built Willoughby or mis-built Axel.
Total utilities at 141W: $600,137. Axel adjusted to 239 units: $278,411. Variance of ($321,726) is concentrated in Gas (($182,069)) and Water & Sewer (($130,561)). Electric reads in line. Confirm whether Gas/W&S are pulled from billing actuals or escalated from a placeholder.
Once the four items are addressed, the operating expense side of 141 Willoughby should tighten by an indicative $900K–$1.2M, and commercial income clarity will either confirm the $9.57M or expand it via recoveries. Either outcome materially sharpens the underwriting.