Webinar: Become a LEED AP and Maintain Your Credential
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
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.
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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.