Articles With "Lending" Tag

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. 

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.

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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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

Green Valley Lofts Raise the Bar for Innovative Mixed Use, Sustainable Development

Building_rendering_1 There really, actually, truly, factually, legitimately is a growing interest in living in more environmentally sensitive buildings.  Even still, whether you’re looking for a single family home, urban townhome, downtown loft, or warehouse loft, the players in the green development field are few and far between (but increasing).  I noticed an interesting developer that is building the "first ‘zero energy’ sustainable mixed-use building in Las Vegas."  This green development, called the Green Valley Lofts, is minutes from the Vegas strip and neighbors all the urban amenities one could ask for (gym, restaurants, banks, dry cleaner, car wash, etc.).  It’s lined to be LEED Certified, too. 

Green Features:
The building will have a stainless steel substructure with floor to ceiling Heat-Mirror insulated glass (benefits include improved interior comfortability, reduced fabric fading, and maximum noise control), aka the EAG Facade.  Also there’s a rooftop solar-photovoltaic system, energy-efficient (non-ozone depleting) closet-type water source HVAC system, low wattage lighting, Energy Star appliances, tankless water heaters, eco-space elevator, whole house central water filtration system, programmable thermostats, zero- to low-VOC non-toxic paints, and bamboo flooring.  The company has a nice description of the benefits of these green features online. 

The interior will include all the amenities that a modernist would desire:  imported Italian kitchens, recycled glass countertops, bamboo flooring, remote controlled window shades, and the whole house lighting system.  Note, some of these features are greener than others.  There’s a glass enclosed roof-top spa as well. 

Loft_interior Loft_bathroom Loft_balcony

As far as pricing is concerned, these lofts aren’t cheap, but that’s understandable because they aren’t built to be cheap.  Phase 1 prices seem to range from the low $400s to $1.1 million.  And some of the financial incentives that they offer include the popular energy efficient mortgage, the Nevada Power Solar Rebate Program, the usual Federal + State renewable energy tax incentives, and any other energy tax incentives.  What’s better, there will be an raffle and one lucky owner will receive the New 2007 Toyota Camry Hybrid.  Nice business model guys, really. 

Extra Links:
Green Valley Lofts [official website]
EAG Facade [Euro-American Glazing]

Differentiation Strategy: EcoBroker, GreenHomesForSale, Etc.

Hawaiiprefab Applications for building permits have slowed down, some projects have been tosssed, and interest rates are inching higher. Homes sales will be ugly, to use the headline of one news article. All the while, real estate agents are scampering, trying to drum up business and continue the high life. I’m not a real estate agent, but from what I understand, the good ones make real good money and the bad ones make good money, so it hasn’t been that bad of a market…until, the Fed started to cool things off. Enter: EcoBrokers, GreenHomesForSale.com, and differentiation.

I noticed two articles on the same day about EcoBrokers, one on USGBC website and the other on MarketWatch. Becoming an Ecobroker means differentiating yourself from hundreds of other run-of-the-mill real estate agents, and it’s smart business. According to the National Association of Home Builders, the 2005 green building market ($7.4 Billion) is expected to reach from $19 to $38 billion by 2010. The tipping point, or the point where more green homes are built than non-green homes, is supposed to be in around 2007.

According to the MarketWatch article, buyers are interested more in the energy-saving, cost-cutting, sustainable features than the "save the earth" rhetoric (go figure!). And while features can vary from home to home (read: there will be a green standards war just like the current standards war between HD-DVD and Blu-Ray), these EcoBrokers are going to have a leg up in explaining to purchasers and sellers the best ways to market homes. Certification for EcoBrokers will cover topics such as energy-efficiency ratings, asbestos, VOCs and lead paint, and indoor air quality.

Even more interesting, at the website, www.ecobroker.com, there is a designation guarantee that says the following: "Earn the EcoBroker designation, and apply the marketing and sales skills you learn. During the first year of your designation, you will increase your personal commission income, or we will refund 100% of your designation fee." From what I understand, the costs are $395, so that should be money well spent. The market is heading that direction (as the NAHB quote urges), so it’s smart to get in early.

Hawaiiprefab2 Another website is www.greenhomesforsale.com. I like the concept; it’s kind of a DIY-type place, and looks like it can be an attractive place for home listing as the listings increase. I looked at some of the listings and they can hardly be considered green (McKinney, Texas home), but it’s a good start. I found a prefab in Hawaii, that I know I’m gonna dream about tonight–if only money was sustainable on my backyard tree!

What I don’t understand about this website, however, is why they don’t invest some money in design and get rid of all those convoluted google ads, etc., sticking up all over the place like a bunch of weeds. It’s hard to take a website serious with all those cheap pay-per-click ads all over the place…my recommendation: pick a strategy for cash generation and stick with it–drive that strategy home. Looks like it costs about $60 to list for 3 months, so stick it out while your making your way down the long tail of sales.

Overall, I digg the future of what’s going on in the green real estate industry. It would be a smart move for real estate agents to get on this and learn the jargon. As the demand for green homes increase, those that can’t speak the jargon will be left trying to catch up. And might I suggest, as a parting note, since buyers are interested in the cost-benefits of green, the jargon includes being able to calculate payback periods, breakevens, inflation, and discounted cash flows, etc.

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