Burnham-Moores Center for Real EstateUniversity of San DiegoMaster of Science in Real Estate

Presentation

Bullitt CenterApril 30, 2013

Thomas Bobo

Justin Farrar

Zabrina Johal

Please do not quote or use this presentation without appropriate recognition. Thank you!

• GOAL: revolutionize how commercial buildings are designed and built and eventually turn a profit

• Opened on April 22, 2013—Earth Day!

• Living Building Challenge

• Located at 15th Avenue and East Madison Street

Burnham-Moores Center, MSRE Program, University of San Diego

“The Greenest Commercial Building in the World”

1 MIL

E

Burnham-Moores Center, MSRE Program, University of San Diego

Major Players

• Owner – Bullitt Foundation– Established in 1952 by Dorothy S. Bullitt– Inherited 28% of the King Broadcasting Stock in 1989– Devoted to protecting and restoring the environment of the

Pacific Northwest– Leases half of the top floor (6th)

• Architect – The Miller Hull Partnership– Established in 1977– Emphasis on socially responsible and human public

architecture– Diverse assortment of projects– Reputation is based on simple, innovative and authentic

designs

• Developer – Point 32– Delivers quality buildings, strong financial returns, and

pride of ownership– Leases the entire 4th Floor

Burnham-Moores Center, MSRE Program, University of San Diego

• Bullitt Center Drivers– State of the art demonstration – Goal: build the greenest possible building ever built

• “A little pricey”– Construction costs added up to $355/sf ($55/sf more than typical)– Slightly less than most new building downtown

• Located 1 mile east of downtown – far removed from amenities

– Does not appeal to the typical tenant

• Appeals to first-of-a-kind adopters with “green” values

Burnham-Moores Center, MSRE Program, University of San Diego

The Bullitt Center: Worth Every Penny for Tenants with Similar Intrinsic Values

“We aren’t making the move due to dollars and cents, but because we want to be part of something pioneering that reflects our values.”

- Bullitt Center Tenant

Multi-Tenant 50,000 S.F. Office Building

• The building was preleased and open to the public

• Tenants started moving in March 2013

• Multi-tenant – 80% leased

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Floor Tenant, Current Leasing Status

1Leased - International Living Future Institute,

University of Washington Integrated Design Lab

2Interchange Media Art Productions (400 sf), ~ 2k

square feet remaining3 ~ 8k square feet remaining4 Leased – Point 32 (desk subletting)5 Leased - Intentional Futures6 Leased - 50% Bullitt Foundation

• Bullitt Foundation

• Education partners: University of Washington and Cascadia Green Building Council

• Department of Planning and Development

• New Market Tax Credits

• US DOE and Pacific Northwest National Laboratory

• Tenants

• Still seeking philanthropic partners to fully realize the vision – Center for Energy and Urban Ecology and McGilvra Place Green Infrastructure

Burnham-Moores Center, MSRE Program, University of San Diego

Project Realization

• Projected to meet the Living Building Challenge

– Site, water, energy, health, materials, equity and beauty

– Performance-based and evaluated after one year of operation

• 2012 Forest Stewardship Council Design & Build Award

– Use of sustainable lumber

• 2012 Seattle AIA Award

– Best in sustainable design

• LEED Platinum

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Awards and Certifications

Challenges

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Design

Burnham-Moores Center, MSRE Program, University of San Diego

All image sourced from Bullitt Building official blog

Composting toilets

• Phoenix Composting Toilets from Advanced Composting System of Whitefish, Montana

• Saves water, energy, and eliminates nutrient release into the watershed

• Unique to commercial buildings

Burnham-Moores Center, MSRE Program, University of San Diego

Solar Energy

Burnham-Moores Center, MSRE Program, University of San Diego

Seattle

Annual rainfall: 38.6 in

Cloudy days: 225

Rainy days: 150

Daylighting

Burnham-Moores Center, MSRE Program, University of San Diego

Daylighting analysis of early atrium scheme showing limited daylight effects on levels 5&6

False color imaging of a photo taken inside a physical model of the level 2 mezzanine provides visualization of luminance levels and the influence of a skylight.

Interior lighting effects: ceiling height

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14’2” ceiling height

38% of the floor area has daylight levels below the 2% daylight factor

77% of floor has daylight levels below the 2% daylight factor

11’6” ceiling height

NOrientation

39% increase

Rainwater cistern

• City of Seattle

has not approved

treated rainwater

to be used as a

potable source.

• Ownership of rainwater is contentious issue.

Burnham-Moores Center, MSRE Program, University of San Diego

Pop Quiz

Burnham-Moores Center, MSRE Program, University of San Diego

• Water Capture: – Seattle has a higher annual rainfall (measured

in inches) than how many of these cities?1. Boston

2. Atlanta

3. Nashville

4. NYC

5. New Orleans

6. Houston

Pop Quiz: Answer

Burnham-Moores Center, MSRE Program, University of San Diego

Source: Denis Hayes interview, NOAA

Seattle Boston Atlanta Nashville NYC New Orleans

Houston

39 4350 48 49

64

48

Avg. Annual Rainfall in Inches

Water Cost

Burnham-Moores Center, MSRE Program, University of San Diego

Seattle: Less than a penny a gallon

• Off-Peak (Sept 16 – May 15) = $4.50 / CCF

• Peak (May 16 – Spet 15) = $5.72 / CCFSource: Seattle Public Utilities District

How well has the project worked?

• “This is a market rate project”– Absorption was in line with expectations– 80% occupied at opening

• Core & Shell costs = $18.5 Million– That’s $355/sf– “More of a warm shell”– Plan to “normalize” costs

for comparison

Burnham-Moores Center, MSRE Program, University of San Diego

Energy Reduction

Burnham-Moores Center, MSRE Program, University of San Diego

Energy Uses

Burnham-Moores Center, MSRE Program, University of San Diego

Benefits

Burnham-Moores Center, MSRE Program, University of San Diego

• White roof = 15% cooling load savings

• Solar = “Net Metering”– 30% Federal grant toward PV purchase

– Federal Tax Credit for up to 30% of installation cost of PV system

– 100% rebate on

Sales & Use Tax

for installation

Bullitt Center Solar Energy

Burnham-Moores Center, MSRE Program, University of San Diego

Electricity Prices

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2011: 6.72 cents/kWh

2011 Rate Source: Seattle Seattle City Light

National Payback Forecasts on PV

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20-30 Years

Summary

• “If the building is still the highest-performing one of its kind 10 years from now, the experiment will have failed.” –Denis Hayes

• Reaching for Living Building Challenge– 12 months to prove it

Burnham-Moores Center, MSRE Program, University of San Diego