Case Studies: Commercial Real Estate
Horizon Realty Group
www.horizonrealtygroup.com
Chicago, Illinois
Multi-Family Residential Real Estate / Property Management Firm
mc² Fixed Rate Solution
Challenge:
Horizon Realty Group owns and manages multi-family real estate properties consisting of approximately 1,500 residential apartment rental units across Chicago. Horizon wanted
to combine the electricity usage for each individual building into an aggregated portfolio for the purpose of negotiating a group-purchasing program for their electricity supply requirements. In addition, Horizon was interested in securing longer-term electricity under a fixed-rate structure to avoid the risk associated with market-price increases for electricity supply.
mc² Solution:
After meeting with Horizon to discuss their desired objectives, mc² developed a program to aggregate the collective supply requirements for all of the Horizon properties to take advantage of their combined electricity consumption patterns under a single portfolio to acquire electricity supply. The mc² locked product (classic Fixed Rate approach) provided budget certainty for Horizon over the term of the agreement.
Customer:
“We are pleased that mc² was able to review our electricity requirements so quickly and develop a program whereby we can predict our electricity supply costs. In addition, the ability to leverage our multiple locations as a large-volume purchaser of power provides additional value to Horizon and maintains our ability to offer competitive rental rates to our clients.”
Jeff Michael, Chief Operating Officer for Horizon Realty Group.
