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THE COST OF
BUILDING GREEN


THE MACALLEN
BUILDING CONDOMINIUMS
BOSTON, MA

BY TIMOTHY A. PAPPAS
The Macallen Building Condominiums
will serve as an exemplary model
of innovative, sustainable and
green design for urban housing
development. The building was
designed to promote healthy living
conditions and reduce energy
consumption. Macallen will also
feature a sustainable, “green roof”
that will not only reduce storm water
runoff volumes, but will also offer
beautiful landscaped views to the
surrounding neighborhood.
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN
SUSTAINABLE SITES
  Category
Type         No.   Item                                          Credits   Cost           Notes
                                                                                          Cost of registering = $2,122, C3 cost for admin,
SS                 Project Registration with USGBC                         $15,000
                                                                                          LEED documentation, energy modeling
SS     p      1    Erosion and Sedimentation Control             prereq    no cost

SS     c      1    Site Selection—Avoid Inappropriate Sites      credit    no cost

                   Urban Redevelopment
SS     c     2                                                   credit    no cost
                   (Development Density)
SS     c     3     Brownfield Redevelopment                       credit    not pursuing

                   Alternative Transportation
SS     c     4.1                                                 credit    no cost
                   Public Transportation Access
                   Alternate Transportation                                               Cost of bike racks, rentable space for parking lost (3 spots),
SS     c     4.2                                                 credit    $190,200
                   Bicycle Storage & Changing Rms                                         and not building bike room.
                   Alternate Transportation
SS     c     4.3                                                 credit    no cost
                   Alternate Fuel Vehicles
SS     c     4.4   Alternate Transportation / Parking Capacity   credit    no cost

                   Reduce Site Disturbance
SS     c     5.1                                                 credit    not pursuing
                   Protect or Restore Open Space
                   Reduce Site Disturbance
SS     c     5.2                                                 credit    not pursuing
                   Development Footprint
SS     c     6.1   Stormwater Management / Rate & Quantity       credit    $60,000        Cost of irrigation tank over disposing irrigation to the street

SS     c     6.2   Stormwater Management Treatment               credit    not pursuing

                   Landscape & Exterior Design                                            Parking is under building and would have been
SS     c     7.1                                                 credit    no cost
                   Reduce Heat Islands: Non-Roof                                          if building was not going LEED
                   Landscape & Exterior Design                                            Cost for landscaping high roof and cost
SS     c     7.2                                                 credit    $601,000
                   Reduce Heat Islands: Roof                                              for terrace roof landscaping
SS     c     8     Light Pollution Reduction                     credit    $15,000        Lighting consultant fees
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN
WATER EFFICIENCY
  Category
Type         No.   Item                                         Credits   Cost                 Notes

WE     c           Water Efficiency Landscaping Reduce by 50%             included in SS 6.1
                   Water Efficiency Landscaping
WE     c     1.2                                                prereq included in SS 6.1
                   No Portable Use or Irrigation
WE     c     2     Innovative Wastewater Technologies           credit    not pursuing

WE     c     3.1   Water Use Reduction 20% Reduction            credit    $32,400              Cost of double flush toilet instead of single flush toilet

WE     c     3.2   Water Use Reduction 30% Reduction            credit    $50,000              Fixture Cost over Standard
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN

ENERGY & ATMOSPHERE
  Category
Type         No. Item                                           Credits   Cost           Notes

EA     p      1    Fundamental Building Systems Commissioning   prereq no cost

EA     p     2     Minimum Energy Performance                   prereq no cost

EA     p     3     CFC Reduction in HVAC & R Equipmen           prereq $91,800           Change from standard CFC heat pumps to no CFC heat pumps

EA     c     1.1   Optimize Energy Performance                  credit    $25,000        Redesign costs for envelope "tests"

EA     c     2.1   Renewable Energy, 5%                         credit    not pursuing

EA     c     2.2 Renewable Energy, 10%                          credit    not pursuing

EA     c     2.3 Renewable Energy, 20%                          credit    not pursuing

EA     c     3     Additional Commissioning                     credit    $100,000       Cost for DMI additional commissioning

EA     c     4     Ozone Depletion                              credit    not pursuing

EA     c     5     Measurement & Verification                   credit    not pursuing

EA     c     6     Green Power                                  credit    $70,000        Green power - 5-year contract - Estimate
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN
MATERIALS & RESOURCES
  Category
Type           No.   Item                                             Credits   Cost           Notes

MR     p        1    Storage & Collection of Recyclables              prereq    no cost

MR     c       1.1   Building Reuse Maintain 75% of Existing Shell    credit    not pursuing

MR     c       1.2   Building Reuse Maintain 100% of Existing Shell   credit    not pursuing
                     Building Reuse, Maintain 100%
MR     c       1.3                                                    credit    not pursuing
                     of Exist Shell, 50% of Non-Shell

MR     c       2.1   Construction Waste Management Divert 50%         credit    no cost

MR     c       2.2   Construction Waste Management Divert 75%         credit    no cost

MR     c       3.1   Resource Reuse Specify 5%                        credit    not pursuing

MR     c       3.2   Resource Reuse Specify 10%                       credit    not pursuing

                     Recycled Content Specify                                                  PC5 doors, cotton batt, recycled carpet,
MR     c       4.1                                                    credit    $203,000
                     5% PC or 10% PC + PI                                                      dura underlayment, (countertops - no premium)
                     Recycled Content Specify
MR     c       4.2                                                    credit    See MR 4.1
                     10% PC or 20% PC + PI
                     Local/Regional Materials 20%
MR         c   5.1                                                      credit no cost
                     Manufactured Locally
                     Local/Regional Materials 20%
MR     c       5.2                                                    credit    not pursuing
                     Manuf, 50% Harvested Locally
MR     c       6     Rapidly Renewable Materials                      credit    $180,200       Woodstalk, cotton batt, linoleum, tectum, bamboo vrs oak

MR     c       7     Certified Wood                                   credit    $47,900        Cost for millwork, rough carpentry, and decking
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN
INDOOR ENVIRONMENTAL QUALITY
  Category
Type         No.   Item                                         Credits   Cost           Notes

EQ     p      1    Minimum IAQ Performance                      prereq    $225,000       Fresh air to units

EQ     p     2     Environmental Tobacco Smoke (ETS) Control    prereq    no cost

EQ     c      1    Carbon Dioxide Monitoring                    credit    $24,500        Monitor in ERU ducts, lobby, multi-purpose room,
                                                                                         and one live/work unit
EQ     c     2     Increase Ventilation Effectiveness           credit    not pursuing
                   Construction IAQ Effectiveness                         no cost
EQ     c     3.1   During Construction                          credit
                   Construction IAQ Effectiveness
EQ     c     3.2   Before Occupancy                             credit    $7,500         Cost of one additional filter change
                   Alternate Transportation                                              Cost of bike racks, rentable space for parking lost
EQ     c     4.1                                                credit    $190,200       (3 spots), and not building bike room
                   Bicycle Storage & Changing Rms
EQ     c     4.2   Low Emitting Materials Paints                credit    $16,000        Pricing is more competitive in the last year as
                                                                                         Greenspec Paint has gotton more popular

EQ     c     4.3   Low Emitting Materials Carpet                credit    $8,200

EQ     c     4.4   Low Emitting Materials Composite Wood        credit    $10,000        Borite treated exterior wood for decking

                                                                          no cost        Subcontractors must submit all materials
EQ     c     5     Indoor Chemical & Pollutant Source Control   credit                   for approval through RFI process
                                                                                         Digital HVAC controls and locating those controls
EQ     c     6.1   Controllability of Systems, Perimeter        credit    $42,000        remotely from the heat pump units
EQ     c     6.2   Controllability of Systems, Non-Perimeter    credit    See EQ 6.1

EQ     c     7.1   Thermal Comfort Comply                       credit    not pursuing
                   with ASHRAE 55-1992
                   Thermal Comfort Permanent
EQ     c     7.2   Monitoring System                            credit    not pursuing

EQ     c     8.1   Daylight & Views Daylight of 75% of Spaces   credit    no cost

EQ     c     8.2   Daylight & Views Daylight of 90% of Spaces   credit    no cost
IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN
INNOVATION & DESIGN
  Category
Type       No.     Item                           Credits   Cost         Notes

                                                                         Dolphin treatment system
ID     c     1.1   Innovation in Design           credit    $20,000      (ultrasonically treats the cooling tower water) -
                                                                         Standard system maintence cost is $2,000-$3,000 per year

ID     c     1.2   Innovation in Design           credit    $59,000      Acoustic mitigation - lamination at South side of the
                                                                         building and cotton batt in the South Side wall


ID     c     1.3   Innovation in Design           credit    $10,000      Local education of LEED Program



ID     c     1.4   Innovation in Design           credit    $7,153       Green housekeeping welcome packets - $50/unit



                   Alternate


ID     c     2     LEED Accredited Professional   credit    $350         Cost for taking the test


 LEED TOTALS                                                $2,111,203
DEVELOPMENT
PRO FORMA
Green is not a burden
on developers if
properly executed
in the design phase.
DEVELOPMENT PRO FORMA
This pro forma is being shown as a way of demonstrating our rationale for building green.
It is not the actual budget for Macallen.

                                                        Cost

Building Hard Cost (non green)                          $75,000,000.00


Development Soft Costs (non green)                      $16,000,000.00


Land Cost (no green cost implication)                   $9,000,000.00


Total Investment                                        $100,000,000.00


Total Sales                                             $125,000,000.00


Gross Return                                            $25,000,000.00 (25% Return on Invested Capital (“ROIC”)


               LEED
Cost of adding LEED                                     $2,111,203.00


Return,             Cost
Return, net of LEED Cost                                               (22.88 ROIC)
                                                        $22,888,797.00 (22.88 % ROIC)
SALES BENEFITS
OF GREEN
DEVELOPMENT
THE COURT SQUARE PRESS BUILDING &
MACALLEN BUILDING CONDOMINIUMS
The project consists of a two-phase residential development in South Boston
encompassing 274 condos and parking for 289 cars. While both phases were conceived
as “design driven” and incorporate certain “green” elements, only Macallen would actually
be taken through the LEED process.
PHASE I
The Court Square Press Building, was
started in June 2002 and completed
in February 2004 and consists of 132
condos. In June 2002, the market
prices in South Boston were averag-
ing $395 per square foot for new loft
product. We projected and achieved
an average price of $483 per square
foot. The increase was attributed to
three features:

1. An innovative design in the common
   areas using cork, bamboo, and
   certified wood veneers;

2. A landscaped courtyard, which
   turned an otherwise unusable
   space into a true amenity; and

3. Full service building management
   and staffing at below market prices
   - affordable luxury.
PHASE II
In Phase II, Macallen, we felt that we could achieve
even higher selling prices by taking each of the three
sales lessons we learned during Phase 1, to the next
level. For example, instead of using materials that
spoke to a “green” educated buyer, we would LEED
certify the building. Additionally, we would create
the largest private outdoor space of any developer
building in the market. Lastly, we would add even
more amenities to the property, such as a pool,
screening room, tenant storage, and WiFi hotspots
in the common areas, to complement the existing
ones, such as a full service, 24 concierge.

As of 12/1/05 we have achieved sales in the range
of $581 per square foot. We have also contracted
sales at greater than $750 per square foot. We
expect to achieve an average sales price of $615
upon completion, assuming we maintain the
current pricing structure.

Once again, we attribute a significant portion of the
increase in sales prices to our ability to successfully
differentiate our product from competing inventory
in the market.
MARKETING
BENEFITS
As a green product we have a natural
differentiation from other products in
the market, thus providing an advantage
and free press.
THE GREEN MANIFESTO

CHOOSE GREEN
What is Green? Green is a choice. A choice to enjoy
simple pleasures; a choice to make simple changes.
Green is about paper over plastic, planting a tree,
riding a bike. It is about the pleasure of breathing
uncontaminated air, knowing your neighbor’s name,
and appreciating a material as much for its beauty
as for its renewable properties. Green is not about
sacrifice... it is about understanding that doing good
and doing well often go hand in hand.

Green development is an integrated approach to
building that focuses on environmental sensitivity,
resource efficiency, and a commitment to community.
As a practice it has found increased traction in
America only recently. However, as green development
continues to demonstrate its clear social, economic
and ecological advantages, it is already becoming the
wave of the future. Pappas Enterprises is committed
to being at the leading edge of this wave, and we hope
you will join us—by choosing Green.
WHY PAPPAS ENTERPRISES CHOSE GREEN
According to the Worldwatch Institute, the construction of a typical 1,800-square-foot home in the United
States generates about seven tons of solid waste —waste that, if not recycled, goes to already overtaxed
landfills. These landfills are usually former green spaces, and the waste we dump there often persists in
polluting our environment by emitting harmful gasses. Buildings continue to take a toll on our natural
resources once construction is complete, consuming more than 30% of our country’s total energy, and
60% of our electricity.

At a time when America’s voracious appetite for natural resources threatens not only our environment,
but also our economic and national security, can’t we do better? Pappas Enterprises thinks so. We have
demonstrated our commitment to the ideals of green building by seeking LEED (Leadership in Energy
and Environmental Design) Certification from the U.S. Green Building Council for the Macallen Building,
our largest residential development project to date.

We have learned that making the ecologically responsible choice does not have to be economically
irresponsible, in part because the green approach creates “solution multipliers”. Simple choices we make
in design and construction can have multiple positive effects: improving sustainability, providing us with
immediate pricing and marketing benefits and providing unit owners with lasting economic and health
benefits. For example, when we choose to recycle construction waste, we minimize disposal fees and
reduce construction costs. When these savings are reinvested in amenities such as high efficiency, CFC-
free HVAC systems, the building’s unit owners enjoy lower utility bills and better air quality. Improving our
bottom line while improving yours? Results like that make us all breathe easier.
WHY YOU SHOULD CHOOSE GREEN
“What will I have to give up?” This is a question people often ask when they contemplate purchasing in
a Green Building. The answer is: a lot. You will give up long commutes in spirit-killing traffic, because
green buildings include public transport and proximity to business centers in their site planning. You
will give up headaches and health problems that arise from poor Indoor Air Quality and Volatile Organic
Compound-emitting finishes. Energy-efficient building systems mean you will have to say goodbye to
absurdly high utility bills, and environmentally sensitive design with an emphasis on daylight and green
space mean you may even have to sacrifice that nagging sense of alienation from the outside world. One
of the first things to go will certainly be the common misconception that joining the Green community
means lowering your living standards.

Choosing Green is all about benefits, not compromises or sacrifices. The Macallen Building will not trade
luxury for efficiency – we make choices in design and materials that benefit you first, and then continue
to work positively for our community, our city, and the larger world. As you appreciate the fine aesthetics
of the aluminum and glass curtain wall, Tektum ceilings, bamboo wood floors, or cork wall coverings, you
may forget the fact that they are all green products. As you soak up the sun in a shared green space we’ve
designed into a building, you won’t be thinking about the fact that it is encouraging nationwide trends in
green development or increasing productivity at your (and your neighbors) place of work. And as you en-
joy appliances and fixtures at the cutting edge of today’s residential technology, you’ll see that good design
has not only practical, but very appreciable physical traits as well.

Life is full of compromises. Doing the right thing often means doing yourself a disservice. Finally, here is a
choice that aligns your happiness and well being with the best interests of the community and even of the
earth itself—all you have to do is Choose Green.
THE MACALLEN
BUILDING CONDOMINIUMS
140 Dorchester Ave.
Boston, MA 02127
themacallenbuilding.com




Sales Office:
9 West Broadway
Boston, MA 02127
p: 617.482.3394
f: 617.482.3396




For Media Inquiries:
Rina Saleh
PR Director
160over90
p: 215.732.3200 ext.111
rsaleh@160over90.com



Pappas Enterprises is committed to the ideals of green building and will seek LEED (Leadership in Energy and Environmental Design)
Certification from the U.S. Green Building Council on all of its future projects.

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The Cost of Building Green

  • 1. THE COST OF BUILDING GREEN THE MACALLEN BUILDING CONDOMINIUMS BOSTON, MA BY TIMOTHY A. PAPPAS
  • 2. The Macallen Building Condominiums will serve as an exemplary model of innovative, sustainable and green design for urban housing development. The building was designed to promote healthy living conditions and reduce energy consumption. Macallen will also feature a sustainable, “green roof” that will not only reduce storm water runoff volumes, but will also offer beautiful landscaped views to the surrounding neighborhood.
  • 3. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN SUSTAINABLE SITES Category Type No. Item Credits Cost Notes Cost of registering = $2,122, C3 cost for admin, SS Project Registration with USGBC $15,000 LEED documentation, energy modeling SS p 1 Erosion and Sedimentation Control prereq no cost SS c 1 Site Selection—Avoid Inappropriate Sites credit no cost Urban Redevelopment SS c 2 credit no cost (Development Density) SS c 3 Brownfield Redevelopment credit not pursuing Alternative Transportation SS c 4.1 credit no cost Public Transportation Access Alternate Transportation Cost of bike racks, rentable space for parking lost (3 spots), SS c 4.2 credit $190,200 Bicycle Storage & Changing Rms and not building bike room. Alternate Transportation SS c 4.3 credit no cost Alternate Fuel Vehicles SS c 4.4 Alternate Transportation / Parking Capacity credit no cost Reduce Site Disturbance SS c 5.1 credit not pursuing Protect or Restore Open Space Reduce Site Disturbance SS c 5.2 credit not pursuing Development Footprint SS c 6.1 Stormwater Management / Rate & Quantity credit $60,000 Cost of irrigation tank over disposing irrigation to the street SS c 6.2 Stormwater Management Treatment credit not pursuing Landscape & Exterior Design Parking is under building and would have been SS c 7.1 credit no cost Reduce Heat Islands: Non-Roof if building was not going LEED Landscape & Exterior Design Cost for landscaping high roof and cost SS c 7.2 credit $601,000 Reduce Heat Islands: Roof for terrace roof landscaping SS c 8 Light Pollution Reduction credit $15,000 Lighting consultant fees
  • 4. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN WATER EFFICIENCY Category Type No. Item Credits Cost Notes WE c Water Efficiency Landscaping Reduce by 50% included in SS 6.1 Water Efficiency Landscaping WE c 1.2 prereq included in SS 6.1 No Portable Use or Irrigation WE c 2 Innovative Wastewater Technologies credit not pursuing WE c 3.1 Water Use Reduction 20% Reduction credit $32,400 Cost of double flush toilet instead of single flush toilet WE c 3.2 Water Use Reduction 30% Reduction credit $50,000 Fixture Cost over Standard
  • 5. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN ENERGY & ATMOSPHERE Category Type No. Item Credits Cost Notes EA p 1 Fundamental Building Systems Commissioning prereq no cost EA p 2 Minimum Energy Performance prereq no cost EA p 3 CFC Reduction in HVAC & R Equipmen prereq $91,800 Change from standard CFC heat pumps to no CFC heat pumps EA c 1.1 Optimize Energy Performance credit $25,000 Redesign costs for envelope "tests" EA c 2.1 Renewable Energy, 5% credit not pursuing EA c 2.2 Renewable Energy, 10% credit not pursuing EA c 2.3 Renewable Energy, 20% credit not pursuing EA c 3 Additional Commissioning credit $100,000 Cost for DMI additional commissioning EA c 4 Ozone Depletion credit not pursuing EA c 5 Measurement & Verification credit not pursuing EA c 6 Green Power credit $70,000 Green power - 5-year contract - Estimate
  • 6. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN MATERIALS & RESOURCES Category Type No. Item Credits Cost Notes MR p 1 Storage & Collection of Recyclables prereq no cost MR c 1.1 Building Reuse Maintain 75% of Existing Shell credit not pursuing MR c 1.2 Building Reuse Maintain 100% of Existing Shell credit not pursuing Building Reuse, Maintain 100% MR c 1.3 credit not pursuing of Exist Shell, 50% of Non-Shell MR c 2.1 Construction Waste Management Divert 50% credit no cost MR c 2.2 Construction Waste Management Divert 75% credit no cost MR c 3.1 Resource Reuse Specify 5% credit not pursuing MR c 3.2 Resource Reuse Specify 10% credit not pursuing Recycled Content Specify PC5 doors, cotton batt, recycled carpet, MR c 4.1 credit $203,000 5% PC or 10% PC + PI dura underlayment, (countertops - no premium) Recycled Content Specify MR c 4.2 credit See MR 4.1 10% PC or 20% PC + PI Local/Regional Materials 20% MR c 5.1 credit no cost Manufactured Locally Local/Regional Materials 20% MR c 5.2 credit not pursuing Manuf, 50% Harvested Locally MR c 6 Rapidly Renewable Materials credit $180,200 Woodstalk, cotton batt, linoleum, tectum, bamboo vrs oak MR c 7 Certified Wood credit $47,900 Cost for millwork, rough carpentry, and decking
  • 7. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN INDOOR ENVIRONMENTAL QUALITY Category Type No. Item Credits Cost Notes EQ p 1 Minimum IAQ Performance prereq $225,000 Fresh air to units EQ p 2 Environmental Tobacco Smoke (ETS) Control prereq no cost EQ c 1 Carbon Dioxide Monitoring credit $24,500 Monitor in ERU ducts, lobby, multi-purpose room, and one live/work unit EQ c 2 Increase Ventilation Effectiveness credit not pursuing Construction IAQ Effectiveness no cost EQ c 3.1 During Construction credit Construction IAQ Effectiveness EQ c 3.2 Before Occupancy credit $7,500 Cost of one additional filter change Alternate Transportation Cost of bike racks, rentable space for parking lost EQ c 4.1 credit $190,200 (3 spots), and not building bike room Bicycle Storage & Changing Rms EQ c 4.2 Low Emitting Materials Paints credit $16,000 Pricing is more competitive in the last year as Greenspec Paint has gotton more popular EQ c 4.3 Low Emitting Materials Carpet credit $8,200 EQ c 4.4 Low Emitting Materials Composite Wood credit $10,000 Borite treated exterior wood for decking no cost Subcontractors must submit all materials EQ c 5 Indoor Chemical & Pollutant Source Control credit for approval through RFI process Digital HVAC controls and locating those controls EQ c 6.1 Controllability of Systems, Perimeter credit $42,000 remotely from the heat pump units EQ c 6.2 Controllability of Systems, Non-Perimeter credit See EQ 6.1 EQ c 7.1 Thermal Comfort Comply credit not pursuing with ASHRAE 55-1992 Thermal Comfort Permanent EQ c 7.2 Monitoring System credit not pursuing EQ c 8.1 Daylight & Views Daylight of 75% of Spaces credit no cost EQ c 8.2 Daylight & Views Daylight of 90% of Spaces credit no cost
  • 8. IMPLICATIONS OF CHOOSING GREEN COST ANALYSIS BREAKDOWN INNOVATION & DESIGN Category Type No. Item Credits Cost Notes Dolphin treatment system ID c 1.1 Innovation in Design credit $20,000 (ultrasonically treats the cooling tower water) - Standard system maintence cost is $2,000-$3,000 per year ID c 1.2 Innovation in Design credit $59,000 Acoustic mitigation - lamination at South side of the building and cotton batt in the South Side wall ID c 1.3 Innovation in Design credit $10,000 Local education of LEED Program ID c 1.4 Innovation in Design credit $7,153 Green housekeeping welcome packets - $50/unit Alternate ID c 2 LEED Accredited Professional credit $350 Cost for taking the test LEED TOTALS $2,111,203
  • 9. DEVELOPMENT PRO FORMA Green is not a burden on developers if properly executed in the design phase.
  • 10. DEVELOPMENT PRO FORMA This pro forma is being shown as a way of demonstrating our rationale for building green. It is not the actual budget for Macallen. Cost Building Hard Cost (non green) $75,000,000.00 Development Soft Costs (non green) $16,000,000.00 Land Cost (no green cost implication) $9,000,000.00 Total Investment $100,000,000.00 Total Sales $125,000,000.00 Gross Return $25,000,000.00 (25% Return on Invested Capital (“ROIC”) LEED Cost of adding LEED $2,111,203.00 Return, Cost Return, net of LEED Cost (22.88 ROIC) $22,888,797.00 (22.88 % ROIC)
  • 11. SALES BENEFITS OF GREEN DEVELOPMENT THE COURT SQUARE PRESS BUILDING & MACALLEN BUILDING CONDOMINIUMS The project consists of a two-phase residential development in South Boston encompassing 274 condos and parking for 289 cars. While both phases were conceived as “design driven” and incorporate certain “green” elements, only Macallen would actually be taken through the LEED process.
  • 12. PHASE I The Court Square Press Building, was started in June 2002 and completed in February 2004 and consists of 132 condos. In June 2002, the market prices in South Boston were averag- ing $395 per square foot for new loft product. We projected and achieved an average price of $483 per square foot. The increase was attributed to three features: 1. An innovative design in the common areas using cork, bamboo, and certified wood veneers; 2. A landscaped courtyard, which turned an otherwise unusable space into a true amenity; and 3. Full service building management and staffing at below market prices - affordable luxury.
  • 13. PHASE II In Phase II, Macallen, we felt that we could achieve even higher selling prices by taking each of the three sales lessons we learned during Phase 1, to the next level. For example, instead of using materials that spoke to a “green” educated buyer, we would LEED certify the building. Additionally, we would create the largest private outdoor space of any developer building in the market. Lastly, we would add even more amenities to the property, such as a pool, screening room, tenant storage, and WiFi hotspots in the common areas, to complement the existing ones, such as a full service, 24 concierge. As of 12/1/05 we have achieved sales in the range of $581 per square foot. We have also contracted sales at greater than $750 per square foot. We expect to achieve an average sales price of $615 upon completion, assuming we maintain the current pricing structure. Once again, we attribute a significant portion of the increase in sales prices to our ability to successfully differentiate our product from competing inventory in the market.
  • 14. MARKETING BENEFITS As a green product we have a natural differentiation from other products in the market, thus providing an advantage and free press.
  • 15.
  • 16.
  • 17. THE GREEN MANIFESTO CHOOSE GREEN What is Green? Green is a choice. A choice to enjoy simple pleasures; a choice to make simple changes. Green is about paper over plastic, planting a tree, riding a bike. It is about the pleasure of breathing uncontaminated air, knowing your neighbor’s name, and appreciating a material as much for its beauty as for its renewable properties. Green is not about sacrifice... it is about understanding that doing good and doing well often go hand in hand. Green development is an integrated approach to building that focuses on environmental sensitivity, resource efficiency, and a commitment to community. As a practice it has found increased traction in America only recently. However, as green development continues to demonstrate its clear social, economic and ecological advantages, it is already becoming the wave of the future. Pappas Enterprises is committed to being at the leading edge of this wave, and we hope you will join us—by choosing Green.
  • 18. WHY PAPPAS ENTERPRISES CHOSE GREEN According to the Worldwatch Institute, the construction of a typical 1,800-square-foot home in the United States generates about seven tons of solid waste —waste that, if not recycled, goes to already overtaxed landfills. These landfills are usually former green spaces, and the waste we dump there often persists in polluting our environment by emitting harmful gasses. Buildings continue to take a toll on our natural resources once construction is complete, consuming more than 30% of our country’s total energy, and 60% of our electricity. At a time when America’s voracious appetite for natural resources threatens not only our environment, but also our economic and national security, can’t we do better? Pappas Enterprises thinks so. We have demonstrated our commitment to the ideals of green building by seeking LEED (Leadership in Energy and Environmental Design) Certification from the U.S. Green Building Council for the Macallen Building, our largest residential development project to date. We have learned that making the ecologically responsible choice does not have to be economically irresponsible, in part because the green approach creates “solution multipliers”. Simple choices we make in design and construction can have multiple positive effects: improving sustainability, providing us with immediate pricing and marketing benefits and providing unit owners with lasting economic and health benefits. For example, when we choose to recycle construction waste, we minimize disposal fees and reduce construction costs. When these savings are reinvested in amenities such as high efficiency, CFC- free HVAC systems, the building’s unit owners enjoy lower utility bills and better air quality. Improving our bottom line while improving yours? Results like that make us all breathe easier.
  • 19. WHY YOU SHOULD CHOOSE GREEN “What will I have to give up?” This is a question people often ask when they contemplate purchasing in a Green Building. The answer is: a lot. You will give up long commutes in spirit-killing traffic, because green buildings include public transport and proximity to business centers in their site planning. You will give up headaches and health problems that arise from poor Indoor Air Quality and Volatile Organic Compound-emitting finishes. Energy-efficient building systems mean you will have to say goodbye to absurdly high utility bills, and environmentally sensitive design with an emphasis on daylight and green space mean you may even have to sacrifice that nagging sense of alienation from the outside world. One of the first things to go will certainly be the common misconception that joining the Green community means lowering your living standards. Choosing Green is all about benefits, not compromises or sacrifices. The Macallen Building will not trade luxury for efficiency – we make choices in design and materials that benefit you first, and then continue to work positively for our community, our city, and the larger world. As you appreciate the fine aesthetics of the aluminum and glass curtain wall, Tektum ceilings, bamboo wood floors, or cork wall coverings, you may forget the fact that they are all green products. As you soak up the sun in a shared green space we’ve designed into a building, you won’t be thinking about the fact that it is encouraging nationwide trends in green development or increasing productivity at your (and your neighbors) place of work. And as you en- joy appliances and fixtures at the cutting edge of today’s residential technology, you’ll see that good design has not only practical, but very appreciable physical traits as well. Life is full of compromises. Doing the right thing often means doing yourself a disservice. Finally, here is a choice that aligns your happiness and well being with the best interests of the community and even of the earth itself—all you have to do is Choose Green.
  • 20. THE MACALLEN BUILDING CONDOMINIUMS 140 Dorchester Ave. Boston, MA 02127 themacallenbuilding.com Sales Office: 9 West Broadway Boston, MA 02127 p: 617.482.3394 f: 617.482.3396 For Media Inquiries: Rina Saleh PR Director 160over90 p: 215.732.3200 ext.111 rsaleh@160over90.com Pappas Enterprises is committed to the ideals of green building and will seek LEED (Leadership in Energy and Environmental Design) Certification from the U.S. Green Building Council on all of its future projects.