CHICAGO—American Realty Advisors recently launched a new sustainability initiative at 150 N. Wacker Dr., a 31-story office tower in Chicago that company officials say will reduce water consumption by more than one million gallons per year. As a result, the real estate investment manager plans to explore implementing new water saving features throughout its entire office portfolio, which encompasses over 11.6-million-square feet throughout the US.
“Commercial properties currently account for nearly 40% of total energy use in the US, and 38% of total greenhouse/carbon dioxide emissions,” says Jay Butterfield, a managing director at American. “For this reason, sustainability strategies are a top priority for American and for our investors. By saving resources, we can conserve power, decrease environmental impact, and reduce operating costs.”
150 N. Wacker underwent LEED re-certification in early 2014 and as part of the process, American conducted a detailed analysis of existing building systems and developed a plan to reduce energy and resource usage, adds Butterfield.
A key to the program was the replacement of 115 restroom sink aerators, four showers, and three women's toilets with lower flow versions. American succeeded in reducing water usage in the building by 4,000 gallons of water per day, or 1 million gallons annually, directly contributing to a reduction in energy required by the building.
“In addition to saving the water itself, our sustainability strategy at 150 N. Wacker reduced the energy needed to handle water and sewage for the building by 90,750 kilowatt hours per year, which equates to a savings of 62.6 metric tons of carbon dioxide annually,” says Butterfield. “These are substantial numbers that will move the needle in a big way, both for the environment and for the asset's bottom line.”
Furthermore, investors can expect annual savings of up to three times the amount of the initial one-time cost of installing the conservation fixtures.
“This is a significant return on investment and the results are well-aligned with American's overall sustainable investment strategy through which we can increase net operating income and add value for our investors while reducing the negative impact commercial buildings have on the environment,” he adds.
Butterfield expects that the US Green Building Council will grant the 150 N. Wacker project LEED Silver certification by the end of 2014.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
