12 posts categorized "Lending" Feed

April 29, 2008

Indiana Green Bank Uses Wind, Solar + Geothermal

I call dibs on this prediction: to the extent that banks can keep themselves from drowning financially, we're going to see a huge proliferation of green branches over the next five years.  The guy on the video uses the word "fad", but I think we all know it's more than that.  This branch here, First Federal Savings Bank, is located in Mishawaka, Indiana and just opened last week.  The local press gave the retail pad some pretty positive coverage, as you can tell from the images, video, and diagram.  The LEED Registered, $2.5 M branch relies on a wind turbine, solar panels, energy efficient windows, Agriboard compressed-straw panels, permeable pavers, and geothermal heating and cooling.

++A Different Green for Banks [South Bend Trib]

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August 26, 2007

Green Building Costs, HGTV Green Home, Energy Efficiency, Green Lending + Re-development (WIR)

Week in Review
  1. A new report by the World Business Council for Sustainable Development found that the costs of green building are often misunderstood, and even overestimated by as much as 300%. 
  2. HGTV announces the Green Home Giveaway - they will build a home somewhere using eco-friendly materials and give it away in 2008.
  3. Sun Microsystems completes next-generation, energy-efficient datacenters in California, the U.K, and India -- they expect to save over $1.1 million in energy costs per year. 
  4. Developing special lending programs dedicated to energy efficiency projects is a good way for banks to support green endeavors. 
  5. With climate change and 80% of the world's population living less than 30 miles from a coastline, Discovery talks about green principles in building a modern city

July 22, 2007

Crappy GHG Homes, Water-efficient Golf, Green Retail Centers + Wells Fargo's $1B in Green Lending (WIR)

Week in Review
  1. 88% of new homes are crappy, greenhouse gas spewing energy hogs - meaning they don't meet the comparatively weak Energy Star standards. 
  2. Las Vegas golf courses are using better water-efficient landscaping to save over 1 billion gallons of water per year. 
  3. Regency Centers is teaming up with the USGBC to implement a pilot program aimed at developing green shopping centers across the country (this is badly needed). 
  4. Wells Fargo passes the $1 Billion mark in financing for LEED certified buildings with loans ranging from $10 to $225 million per project. 

July 05, 2007

Finding Equity Partners + Green Development

Green Equity Partners

UPDATE: 4/27/08 - the market has changed substantially since writing this article and some of the green funds I was in touch with are no longer looking for deals. 

Hey green developers, I'm not sure what stage of planning you're in and whether you've completely figured out your capital stack, but I have some information that may be of assistance in finding a good equity partner.  Feel free to shoot me an email at jetsongreen at yahoo.com, and I can get back to you.  In your email, let me know the company you're with and some quick details about the green project you are planning.  I may be able to help developers with the following general characteristics:

  • Experienced developer of LEED or other third-party green certified real estate assets;
  • A reputation for quality and excellence in development;
  • Track record of handling projects averaging $50-$75M or more;
  • Looking for equity financing for a green development in any real estate product type.

I'm not promising anything, I'm just saying, depending on your situation, I may have information on a good source for equity capital from people that know green development. 

June 28, 2007

Ramifications: GE Real Estate Moving to New, Potentially LEED-CI Headquarters

GE Real Estate

You may not think this news is all that sexy, but it's a pretty big deal.  GE Real Estate is an enormous source of capital funding for commercial properties.  To get an idea of what we're talking about, here are the figures:  their portfolio is weighted heavier in equity investments at 54% with the other 46% in debt investments; the average investment size is roughly $6.5 million; in 2006, GE RE closed $29 billion in real estate transactions; GE RE has $59 billion in total assets.  Long story short, GE Real Estate is a star player in the real estate lending game, and since they invest more on the equity side (and equity investments are smaller than debt investments), they work with tons of customers.

So starting June 25, 2007, GE Real Estate will operate from its new headquarters in Norwalk, Connecticut, at 901 Main Avenue.  901 Main Avenue is a class A+ property and it's not inherently green.  BUT, GE RE has registered with the USGBC to go green on the 3rd, 4th, and 5th floors under the LEED-CI (Commercial Interiors) certification system.  LEED Registration is not a guarantee of anything, the project still must be certified upon completion. 

Here's my take: 
When GE RE is done greening the interiors, people are going to start talking about it.  Employees will like the green building.  The financial benefits of the green building will stand out.  And all those people working inside will start to ask developers why they aren't pursuing LEED certification, if they aren't going green.  Now capital is abundant, so this talk will be nothing more than a mere 'suggestion,' but eventually, developers will listen and there will be a trickle down.  I'm calling it right now.  GE RE is going to 'sneeze' green on their customers and we're going to see a major 'tipping point' in the real estate development industry.  Anyone agree?

March 12, 2007

One Bryant Park, Greenest Skyscraper in the World? (S2)

One Bryant Park Rendering

If you're going to office in what looks to be the greenest skyscraper in the country, you should also have a sustainable business strategy to go along with it.  One Bryant Park, soon to be known as the Bank of America Tower, is the perfect place for a company that just announced a $20B initiative to support environmental lending.  Designed by Cook + Fox Architects and developed by the Durst Organization, One Bryant Park is shooting for LEED Platinum certification.  It's a 2.1 million sf, 54-story, crystalline office tower located right in midtown Manhattan and is slated for completion in 2008. 

ABC News recently ran an article on some of the more interesting green features of the building.  Interestingly, it will only cost about 1-2% extra (of a total $1.2B) to include all the green additions, but those are expected to be paid for within a 2-4 year window as a result of saved energy expenses.  That's the business case for green building.  There will be rainwater capture, floor-to-ceiling windows for natural lighting, advanced double wall technology to allow light and block heat, air cleaned of 95% of its particle matter, a floor duct air system controllable in each room or office, three state-of-the-art natural gas fuel cells to create on-site energy, building concrete made of 45% blast furnace slag for stronger construction, and daylight dimming and LED lights for reduced electric usage.  The result:  these green additions have the anticipated benefits of reducing energy consumption by 50%, reducing potable water consumption by 50%, reducing storm water contribution by 95%, and using about 50% recycled materials in construction.  That's a lighter footprint. 

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March 11, 2007

Bank of America's $20B, Green Residential Traction, + Daylight-Savings Tips (WIR)

Week in Review
  1. Bank of America Announces $20 Billion Environmental Initiative - BofA announced a $20 billion initiative to support the growth of environmentally sustainable business activity to address global climate change. Bank of America's ten-year initiative encourages development of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services.
  2. Residential Green Building Slow to Gain Momentum - The major homebuilders, who account for 80 percent of all homebuilding activity in the nation, face a unique challenge in implementing green building on a widespread scale. Many have added energy-saving features and experimented with environmentally friendly materials but have not yet been able to sign on a critical mass of buyers willing to pay more for them.
  3. Easy, Eco-friendly Ways to Put Those 21 Extra Hours of Evening Daylight to Good Use This Spring - Tomorrow, the entire nation will spring forward three weeks early, gaining an extra 21 hours of evening daylight. Since energy conservation is the driving force for the early time change, Lowe's is encouraging homeowners to utilize these hours wisely with some simple, green projects that would make Mother Nature smile.

Don't forget to spring forward tonight. 

February 11, 2007

Climate Change Legal Practice, Green Building Lending, Texas Geothermal, + Green Sans LEED (WIR)

Week in Review
  1. The Law Firm of Holland & Hart Announces New Global Climate Change Practice - The firm is the first and only law firm based in the Rocky Mountains to organize a practice group concentrating on this rapidly emerging area of law and policy.  Holland & Hart’s Global Climate Change Practice Group consists of attorneys who counsel clients on the climate change aspects of energy and natural resources development, industrial energy use, regulatory compliance, renewable energy and energy infrastructure projects, corporate disclosure and governance, carbon markets, litigation, and government relations.
  2. New Resource Bank Aims to Make it Easier to Build Green - A new banking program here aims to encourage developers and investors to start green building projects by offering financial incentives like providing more money at a lower cost, higher loan-to value, and lower interest rates.
  3. Texas Issues First Lease for Geothermal Energy Exploration and Development along Gulf Coast - Texas has awarded the state's first lease for geothermal energy production to Ormat Technologies, Inc., which plans to explore the renewable energy's potential along seven Gulf Coast counties.  The company paid $55,645, or $5 an acre, for the right to explore 11,129 acres for pockets of hot water and steam under the ocean floor, the General Land Office announced Tuesday.
  4. Building Greener and Cheaper than LEED - While many argue over the costs and benefits of requiring LEED-certification, some affordable housing developers have shown that building green doesn't require following the program's recommendations.

October 28, 2006

Entrepreneurial New Resource Bank + Green Lending Residential Solar Systems

New_resource_b Sustainable business entrepreneurship requires sophisticated financiers, so I wanted to let the Jetson Green readers know about an innovative, newly-founded banking institution called "New Resource Bank."  They are "financing sustainable resources in [their] community."  The bank was started by a group of entrepreneurs with expertise in the banking industry, and their start-up story is revealing:  240 founding shareholders subscribed to $24.75 M of the bank's stock offering, and the community backed it as well bringing the initial subscription amount to $35 M--that's a 60% over-subscription.  This made it one of the largest initial capitalizations for a start-up bank in Northern California.  Talk about suppressed demand for sustainably-minded banking institutions and investments!

They are all about green.  The bricks + mortar bank was certified LEED-CI Gold.  Plus, they announced an alliance with SunPower Corp. (company that manufactures high-efficiency solar cells and panels) to provide one-step financing of residential solar energy installations.  Under the program, customers work out a home-equity type loan that allows monthly payments on the solar installation while they save money on their electricity bills.  Factoring in governmental incentives, and if there are local incentives, you could end up with a mad case of energy and financial independence.  Typical financing is for 25 years on a system ranging from $20,000-40,000 (before federal, state, + local incentives).  If you're a Californian, after the Governator's program kicks in, there should be no reason not to go solar.  Tip via GreenBiz.

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October 12, 2006

Hines CalPERS Green Development Fund (HCG) Created with +$120 M Equity Investment

Calpine_center_city_foreground_lres_web In case you haven't noticed, Hines is one of those smart real estate companies that is leading the way in sustainable real estate.  They're committed to sustainable building and I recently blogged a quote from Hines Chairman + Founder Mr. Gerald D. Hines where he said "sustainability has become a key component of development."  Well, it looks like they're throwing more money at that philosophy, and I think this press release should be a wake up call to all those developers out there that are just throwing up non-green buildings, willy nilly. 

Hines announced the closing of a Hines CalPERS Green Development Fund (HCG), which is capitalized with +$120 Million.  This equity investment will allow the development of more than $500 M in high performance, sustainable office buildings throughout the United States, certified through the LEED-CS (Leadership in Energy and Environmental Design Core and Shell Program).  What's even more significant than the amount of money that will be invested in green building development, is the fact that CalPERS is the nation's largest pension fund.  This is really going to accelerate the tipping point in green development because CalPERS is such a huge player.

Hines Senior VP and fund manager said, "We have long tried to persuade tenants that there are significant bottom-line benefits to sustainable development and build out. Fortunately, the green movement is gaining steam as the public become more conscious of its benefits.  The real estate industry is finally ready for green."  I couldn't agree more.  If you can't tell, this is a big damn deal. 

Extra Links:
Hines Press Release [September 27, 2006]
Hines Official Website
CalPERS Official Website

         
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