The UT-Arlington Texas Real Estate tour of May 2011 blended the disciplines and graduate students of business, real estate, urban planning and interdisiplinary sustainability into a wide ranging number of site visits and meetings. We had many opportunities for learning and questioning experts in various fields. We visited developed properties, businesses such as architects and consultants, governmental agencies involved in sustainability, an assortment of retail and community-oriented organizations. Many common threads were discovered during the various meetings and visits.
Property Site Visits:
Property Site Visits:
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| The Pedernales Lofts (courtesy of ApartmentWiz) |
The Pedernales Lofts. A mixed use development in Austin on 6th Street east of I-35, with individually owned multifamily homes on 2nd and 3rd stories and commercial spaces on street level. This was one of the first multifamily developments in this part of east Austin, and earned the first 5 star multi-family rating by Austin Energy Green Building (AEGB). Visible green features include low water landscaping, local materials such as limestone and stucco, dual pane windows, and rainwater harvesting for a small garden area. The units on the first floor are built to allow an easy conversion from commercial to residential without substantial demolition.
Pauly Presley Realty – has offices at The Pedernales Lofts and is active in leasing and property management in the area. They reported that at the Pedernales Lofts, about 60% of the units are now owned by investors and leased to tenants, and 40% are owner-occupied. Although the typical tenants and buyers are young professionals, the broker agreed that the AEGB 5-star rating or energy efficiency of the property is not being publicized and most tenants don’t even know about it. Energy efficient new construction is now considered a given, equal with all similar properties, not as an extra selling point.
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| Riverside Grove (courtesy of condos.com) |
Riverside Grove – a townhouse development in east Austin, near the Austin Community College. These units are being sold as “affordable” in general, either to empty nesters or young professionals, both of whom seem focused on lower operating costs. “Green” to them means energy efficient, which in turn means low electricity bills. The property has Low E vinyl windows, radiant barrier in attics, and air conditioning units with SEER ratings of 14. These measures result in very low electricity bills. The site is also water efficient with decomposed granite walks and low water landscaping used, to reduce irrigation needs. These units cost in the range of $130,000 to $180,000 for a 900 to 1400 sq. ft. home.
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| Solar Sunflowers at Mueller (courtesy of inhabitat.com) |
Mueller - a huge mixed use development at the former site of the Austin airport, which moved in 1999. Catellus, the developer, has a very informative marketing office (LEED Gold) on-site. Construction to date has included the regional retail center with stores such as Home Depot and Best Buy; 3-4 story multifamily, single family houses, the Dell Hospital for Children and surrounding buildings including Ronald McDonald House. Overall, about 300 acres of the 700 total acres have the infrastructure installed. Although "urban infill" usually refers to much smaller projects, Mueller could be considered an urban infill project as well, since it is in the center of the city.
The overall development has many amenities including jogging paths, bike routes, and parks. Integrated pest management is mandatory throughout the development, to reduce exposure of the watershed and its occupants to excessive chemicals. The site development included recycling many tons of concrete from the runways and recycling of other construction waste. Low-water landscaping is the norm throughout. House lots tend to be smaller than traditional and alleys are wider than traditional. Planning for light rail and other mass transit service to Mueller is ongoing, but at this time the preliminary concepts are just for the routes, and have not led Mueller to specifically designate transit-oriented development locations.
The overall development has many amenities including jogging paths, bike routes, and parks. Integrated pest management is mandatory throughout the development, to reduce exposure of the watershed and its occupants to excessive chemicals. The site development included recycling many tons of concrete from the runways and recycling of other construction waste. Low-water landscaping is the norm throughout. House lots tend to be smaller than traditional and alleys are wider than traditional. Planning for light rail and other mass transit service to Mueller is ongoing, but at this time the preliminary concepts are just for the routes, and have not led Mueller to specifically designate transit-oriented development locations.
The Austin Energy Green Building Program has been very involved throughout the project since inception. This has presented an opportunity to expand the number of vendors, contractors, designers and supporting services for green building in the Austin area. Various levels of star-based ratings were required throughout. Some of the more highly rated (by AEGB’s system) buildings also use rainwater collection, sprayed insulation, and rooftop gardens.
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| A SOL home in Austin. |
Sol Development – this project will include forty single family houses in East Austin, of which twenty three are built so far. The developer Chris Krager is also an architect, and he is devoted to well-designed affordable housing, and avoiding suburban sprawl. Sol is intended to provide 40% affordable housing (16 homes) and 60% at market prices (24 homes). To accomplish this in spite of much higher land prices in recent years, Sol has joined with the City’s Guadalupe Neighborhood Development Corp. to provide funding for down payments and shared equity.
The home design is a modern style, with smaller houses on smaller lots, but each has a quality outdoor space such as a side yard or courtyard. A common area provides some outdoor green space beyond each home’s lot. Ceiling heights are taller, and windows are thoughtfully placed, to make the homes feel larger and keep some privacy. The design is targeted to “net zero capable” meaning they use 55% less energy than 2006 code, and each house has some solar photovoltaic (PV) panels on the roof, with room for more. Geothermal HVAC systems are used for energy efficiency, noise reduction and longer life. Spray-in foam insulation in the 2x6 wall framing and on the underside of the roof deck assists with energy efficiency too. Including the added cost for the solar and geothermal systems, the construction costs 17% more than traditional, but after including the low electric bills, the monthly cost is $30 to $40 less than traditional. The market-priced houses sell for about $190/sq. ft.
The home design is a modern style, with smaller houses on smaller lots, but each has a quality outdoor space such as a side yard or courtyard. A common area provides some outdoor green space beyond each home’s lot. Ceiling heights are taller, and windows are thoughtfully placed, to make the homes feel larger and keep some privacy. The design is targeted to “net zero capable” meaning they use 55% less energy than 2006 code, and each house has some solar photovoltaic (PV) panels on the roof, with room for more. Geothermal HVAC systems are used for energy efficiency, noise reduction and longer life. Spray-in foam insulation in the 2x6 wall framing and on the underside of the roof deck assists with energy efficiency too. Including the added cost for the solar and geothermal systems, the construction costs 17% more than traditional, but after including the low electric bills, the monthly cost is $30 to $40 less than traditional. The market-priced houses sell for about $190/sq. ft.
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| The Pearl Retail area (photo courtesy of Flickr user Lannadelarosa) |
The Pearl - a mixed use live-work-play development adjacent to the former Pearl Brewery near downtown San Antonio. Notably, the project is on the Riverwalk but does not include hotels. This is an intentional plan by the city to encourage revitalization of inner city area for San Antonio’s residents, and reverse movement to the suburbs. The Building uses some solar PV and has a kiosk to show the real time electrical demand for the building, the amount of electricity being generated by solar, and the amount being purchased from the utility, CPS. (During our cloudy morning visit, the solar was providing about 10% of the electricity demand.) The buildings have architecture that provides an industrial feel with the exterior materials used, exposed ceilings, metal siding, exposed structural steel, exposed polished concrete floors, etc. A purple pipe reclaimed water system is used for irrigation. Condensate and runoff is collected for use in the system. The Pearl has several stories of multifamily housing, plus offices and retail. The offices include the San Antonio Chapter of the American Institute of Architects, and other professional services firms, studios, and restaurants.
Toyota Texas Manufacturing - the San Antonio truck manufacturing plant offers scheduled tours and a visitor center. Toyota’s presentation can be interpreted in terms of the triple bottom line. The focus on profits is demonstrated through a focus on quality, and the reduction of waste. Waste can include time, labor, materials, and mistakes that need correcting, affecting profits. The environmental aspect also focuses on waste reduction; in fact the plant has a Zero Landfill goal. Toyota and the adjacent suppliers try to find a re-use for every scrap material. Low volatile-organic-compound paints are being used in part of the truck painting process. People are treated with respect, both the employees and the community, through philanthropy and volunteerism especially for youth and educational causes. The company provides a fitness center and full healthcare services at an on-site clinic building, for any employee and family member.
Green Bank – a 4 story LEED gold certified office building in Houston. Constructed about 4 years ago. Notable LEED features are shown throughout the building on signage. (The building was the venue for a meeting, not really the subject of a tour.)
West Avenue River Oaks – a mixed use development in Houston, with a parking structure and substantial retail area, plus 6 to 8 stories of apartments above. The property did not emphasize any sustainability features in its appearance or marketing.
2727 Kirby – a high-rise condominium project in Houston, across Kirby from the West Avenue. The property did not emphasize any sustainability features in its appearance or marketing.
Thoughts and Observations:
· The Pearl, the San Antonio Riverwalk, and the Green Bank use purposeful signage to tout their sustainable features for educational purposes. This is a good method to extend green knowledge and awareness to the general public, and it can enhance the owner’s image among its customers or citizens.
· For relatively dense multifamily developments, a method of further increasing energy efficiency well beyond SEER 14 would be to use water-cooled heat pump air conditioning equipment with a centralized water loop, as is used at some schools and hotels, instead of hundreds of the traditional air-cooled split systems. An energy-efficient new multifamily or mixed use construction project would be a good application for this technology. Perhaps as energy efficiency demands increase, this will become a more widespread application.
· There are still many quality developments, of recent construction, that either do not embrace energy efficiency and sustainable features, or no longer use them as a competitive advantage in their marketing approach. This seems like a missed opportunity.
Office Visits with Architects and Consultants
· Bercy Chen Studios – we interviewed Thomas Bercy, a principal. Their firm, based in Austin, designs with sustainability and cost efficiency in mind. They spend time researching and selecting unique and appropriate materials, and working with the tradesmen that install them to achieve quality results. He considers the rating systems by AEGC or LEED to be somewhat irrelevant or secondary to the goal of accomplishing good design work with good life cycle costs. Trends that he foresees include: increased use of design-build methods; materials from other industries being adapted to building construction; cooling with water – such as radiant heating and cooling, rather than forced air systems.
· Alamo Architects – this is a well-established firm in San Antonio. We visited and toured their headquarters building, an excellent example of an extensive adaptive reuse in an older neighborhood. The building was the second LEED certified building in San Antonio, and Alamo was among the earlier members of USGBC in San Antonio, in 2005. The former building use was as a manufacturing facility. Most of the materials were reused in the new design, including concrete slabs turned into fence panels, garage bay doors turned into workstation walls, and many smaller elements reused either in the building or the landscaping. Decomposed granite is used in the parking areas instead of new concrete. A cistern captures rainwater for irrigation. The new office design is all open, very conducive to collaboration and information sharing among the 5 principals and the other staff members. The building has become a sales tool and frequent meeting host location.
· Poteet Architects – we interviewed the Principal, Jim Poteet. His firm has always done revitalization and repurposing projects as a core business. Several examples are within sight of his own office, which was repurposed as well. Presently he is also master planning for the renovation of the Hemisfair Park area, including a goal to bring back the housing to the core of the city that was displaced in the 1960’s by that project, in a way that puts the context back and uses the historic buildings that remain in the area. Like the Pearl project, the goal is to get locals back to the downtown area, in addition to the tourism trade.
· American Institute of Architects, San Antonio Chapter - we toured the facility at the Pearl development, and noted the displays by local firms that are AIA members. The chapter hosts monthly meetings on Saturdays for the general public to be exposed to the good architecture and issues related to it, in the San Antonio area. This is another example of outreach to spread the information about sustainability.
· Sustainable Perspectives Group – we met with Elizabeth Cortez, project manager with SPG. She is involved daily with the LEED certification process. SPG is not a design firm, but is primarily focused on meeting the needs of the industry specifically for achieving LEED certification for their projects. The LEED certification process requires specific knowledge of how certain credits are qualified, specified, achieved and documented. SPG helps architects, owners and general contractors do that correctly, using their research and experience from other projects to add to the team’s knowledge base and avoid “lessons learned” that can’t be corrected.
· Momentum Bay – we met with Mark Robinson, a management consultant and partner in the firm. His company does several types of business and consulting including energy procurement and management, energy reduction by coaching building operators and users into behavioral changes, advocating better energy efficient designs, development of solar energy projects, consulting with executives on sustainability issues, and more. He understands the whole spectrum of sustainability issues, not just energy consumption. He sees the biggest needs and opportunities to make an impact to be in schools – saving energy costs would allow funds for teachers in a time when funds are being cut; and improving our local food supply to increase health and reduce healthcare costs caused by poor diets. Mark also generously shared many tips and philosophies with us on how to engage others in sustainability ideas, through financial reasons and others.
Thoughts and Observations:
· LEED Consulting: Green building, sustainability, and LEED are closely related, but upon further discussion the terms are not exactly synonymous. The specific opinions on each vary among the professionals in the field. The numbers of LEED certified and LEED registered projects has grown at a very high rate over the past several years. This has drawn many designers and builders into LEED for the first time. That in turn has created a niche for consultants that thoroughly understand LEED and can help clients achieve their LEED goals. Sustainable Perspectives Group is an example, in the San Antonio area, of how LEED has led to specific job creation, and in the case of SPG, the formation of a new company.
· LEED Certifications: The Architects that we met, Alamo Architects, Bercy Chen, and Poteet, are all designing with sustainable concepts, however even on projects with a very sustainable design, this may or may not include obtaining LEED certification. Poteet’s typical project has been adaptive reuse of existing buildings, which is generally more “green” than building a completely new building, but LEED certification of the projects has not been a high priority for him and his clients in general. Bercy Chen is also thoroughly devoted to sustainable building design and the use of better materials, but again this does not always mean that the project seeks LEED certification. Alamo Architects embraced LEED certification for their own headquarters, but many of their design projects or clients do not seek LEED certification. We can conclude that there is even more sustainable design and construction occurring than the LEED statistics indicates.
· Another trend noted on residential or smaller commercial green-building projects is the heavier involvement of the architect in the construction process, as compared to large commercial projects with large general contractors. This would be a throwback to the concept of the master builder in prior centuries. Bercy Chen and Poteet both described this type of involvement in their projects, as did Chris Krager at the Sol Development.
Governmental
· Austin Energy GreenChoice - we met with Carol Harwell, manager of the program. GreenChoice is a voluntary offering from Austin Energy to provide renewable energy to customers. It is considered the most successful program of its kind in the nation. The power is about 97% from wind farms and 3% from landfill gas biomass. In total, the program provides 451 MW of renewable capacity. The pricing structure basically involves a fixed “fuel charge” for a number of years, for the “batch” that the customer contracts into. This may be higher or lower than the fuel charge to regular customers for coal and natural gas costs to the power plants. In general the GreenChoice is higher cost. Even so, there are many area businesses and individuals that place a value on using renewable energy and purchase it. These include most of the largest businesses in Austin, and they can receive some beneficial publicity for participating in the program. Austin Energy’s goal is to go renewable energy being 12% of their production presently, up to 35% by 2020.
· Austin Energy Green Building Program – we met with Jeff Wacker, an engineer with the commercial program. AEGB is one of most complete and extensive programs in the nation. The program started twenty years ago, well before LEED was started. They’ve had all the successes and frustrations over the years. Their main goal is to cause reduced power use, so Austin Energy will be able to postpone or avoid additional power purchasing or power plant construction.
The rating system looks at the whole building, like LEED does, with the same categories. Integrated design is their desire, because the building operates as one when it is done. Rating was voluntary, now it is mandatory for Central Business District and for PUD zoning changes. The mandatory project crews tend to learn from it and often embrace it.
· Energy Conservation Audit and Disclosure (ECAD) ordinance. All residential properties in Austin are required to get an energy audit and report the results to the City. Exemptions are for homes newer than ten years, and several other exemptions. Commercial properties are required to list their building on EPA’s Energy Star Portfolio Manager and post the Energy Star score. The program has no punishments for the audit’s findings, it is intended just to educate owners and buyers.
- San Antonio River Walk Improvements - This project is near The Pearl and extends for about one mile down the river. Completed in 2009, its purposes include flood control, public amenities such as an amphitheater, ecosystem restoration, and recreational improvements such as jogging routes and boat access. This project is truly providing the triple bottom line with economic development, features for the people to use, and environmental restoration. Plentiful signage along the walk illustrates and educates about the sustainable features and benefits. Assorted other development and construction is occurring along this portion of the river, so early indications are that the economic development goals will be met over time.
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| Riverwalk Extension photo courtesy of Flickr user Monceau |
· Solar San Antonio - This is a non-profit agency that screens and coordinates solar PV customers and contractors, to prequalify the customers for the contractors and vice versa. 150 homes per year have added PV through this program. This is part of the City of San Antonio’s push toward solar power and away from coal-fired power plants and nuclear plants. City Public Service, the municipal electric company, already receives 14 MW from the Blue Wing solar plant. CPS just received proposals for 50 MW solar power plants. The goals include cleaner power, economic development by the manufacturing of the panels, and education of the workforce and public.
· UT San Antonio Institute for Economic Development – Sustainable Business Program – this is a new organization launched in late 2010, a think tank of sorts, offering business consulting on issues including sustainable manufacturing, disaster preparation and resiliency, and commercialization of ideas. Funding is from the Department of Commerce’s Economic Development Agency. Their geographic service area, a wide part of South Texas, was selected by the federal government for needed consulting in these areas due to problems such as sprawling population, high fuel use, and obesity. They are consulting with large and small businesses, using an inquisitive and collaborative approach and based on economic principles over a continuous improvement journey, rather than a point-scoring system.
· City of Houston Green Building Resource Center – we met with the Director, Steve Seltzer. This is a facility adjacent to the city’s permitting office, with numerous exhibits and information about green building products and systems. We enjoyed the hands-on nature of this after hearing about these technologies from many experts this week. We observed insulated concrete forms as mentioned by Poteet Architects, and spray foam insulation like used at Sol. The center also exhibits other types of walls and insulation, lighting, HVAC equipment, flooring, materials made from recycled materials, green roofs, raised floor with under-floor air distribution, water-saving urinals and toilets, and demountable partitions. A rainwater harvesting system and dimmable fluorescent lights for daylight harvesting are installed. This is an interesting place to visit for any builder or home owner planning improvements.
Community-Retail oriented:
· Sustainable Food Center – This organization’s mission is to help people in the Austin area eat local foods and healthier foods. They coordinate several programs, such as Farm Direct, to get sustainable farmers products directly to the public, usually at farmer’s markets. Similar efforts are for Farm to School with the Austin ISD. Another program is the Happy Kitchen, which teaches low income residents how to budget, shop, and cook food in a healthy way, often with food from a farmer’s market. This is another example of a sustainable program, touching people, environmental and economic benefits. The director explained to us the concept of Community Supported Agriculture (CSA) which enables local smaller farmers to sell products with a commitment and payment in advance, thus creating a stable market for them so they can farm with the confidence that their products will be sold.
· Eco Wise Store – this is a business that has been in Austin for many years, selling green building products. The store has building materials such as countertops made of recycled newspapers and glass; fiberglass insulation that is made from recycled bottles but doesn’t itch; cork flooring, bamboo products including clothing; salvaged wood, and more. The owner shared a unique idea – apartment renters should bring their own flooring and appliances because landlords have no financial reason to provide energy efficient appliances, but renters could bring efficient appliances and re-usable flooring that outlasts the materials landlords use and then throw away.
· Eco School – this small school in Austin is in its fifth year. They emphasize empowering the children to go make a better world, and to be respectful. Respect includes actions with other people, and also respect for the earth and the environment. They participate in lots of community service, gardening and recycling, among other activities.
· USGBC Webinar on Affordable Multifamily Housing – we stopped at the Trane office in San Antonio to view a webinar from the US Green Building Council. This webinar was part of a series, this one on measuring and benchmarking energy use in affordable multifamily housing. The experts explained how and why this is useful, and the lessons learned in projects where energy use has been a raised focus. In many of these, the residents are more than tenants, they are clients of an agency that is trying to lend them a helping hand. So if energy costs can be reduced, that provides funds for other beneficial uses like job training or food.
· Jolie Vue Farm – this is a sustainable farming operation northwest of Houston, owned by Honi and Glen Boudreaux. They raise cattle and pigs in a healthy manner including pasture grazing on native grasses, healthier diets, and ample room to roam in sun, shade and fresh air. Essentially this is how animals were raised a few generations ago before feedlots were used. They also grow fruits like figs, pears and peaches, which are fed to the animals. They sell the meat using the CSA model, with monthly deliveries direct to the subscribers and marketing at farmers markets. The meats are higher in “good fats,” anti-oxidants, vitamins and minerals; and do not contain hormones or antibiotics. This was an especially fascinating and enlightening visit.
Thoughts and Observations: Many organizations are striving to provide the tools and knowledge that can make it more feasible for people to live a more sustainable lifestyle, from building products to food. The one common denominator we all have is food consumption. The Community Supported Agriculture program, in its various aspects, is a prime example of implementing the triple bottom line in everyday life. People - CSA's provide fresh and healthy food, which helps overall health and performance at school or work. Planet - small, local farming avoids vaccines, pesticides, fertilizers and feedlots used in most large scale farming, which in turn protects the watershed and air. Profit - CSAs provide steady income for local farmers; save food cost for customers, school districts, and food banks.
Another application of the triple bottom line concept is with the availability of building materials made from recycled materials: People appreciate having an option for the materials they use, other than a landfill. When real products can be seen as completing the recycling loop, it encourages us to recycle more. The Planet benefits from recycling materials into new products, and from using rapidly renewable materials. Profits can be made by providers and contractors using these products. The Houston resource center and the Eco Wise store are great ways for the public to learn how to use these products and systems.
In summary, we had a spectacular time meeting and learning from so many interesting people in Austin, San Antonio and Houston. They all were very generous with their time and information, and they made the trip a big success.
