Case Study Background
Beacon Capital Partners is a tenant-focused private real estate investment firm with a 75-year legacy of successful real estate development and management. Beacon invests in high-quality commercial properties in core urban markets. Today, Beacon Capital owns 93 buildings and properties in Boston and other major U.S. cities. Some of its landmark properties in Boston include One Exchange Place (53 State Street), 1-2-3 Center Plaza, and Southline at 135 Morrissey Boulevard in Dorchester, the former Boston Globe newsroom, offices, and printing plant.
Strategy
“Beacon is committed to building a sustainable future for everybody, as a core part of our mission,’’ Al Scaramelli, Managing Director of Sustainability and ESG says. “Our environmental, social good, governance, and resilience goals underpin every element of our process—from building selection and planning, to construction and management. We’ve set ambitious emissions reduction targets and are taking tangible steps in every project to build healthier ecosystems, thriving communities, vibrant workplaces, and a future that works for everyone.’’
Beacon has been conducting energy audits across their portfolio. These audits have resulted in significant cost savings and improved energy efficiency at the properties. In 2009, Beacon began installation of real-time energy usage meters documenting consumption of electricity, natural gas, and steam in five-minute increments and flagging sudden anomalies in energy consumption. While early systems would show only that an energy spike was occurring, more recently Beacon has been testing out a system that monitors individual pieces of equipment, like boilers, fans, cooling towers, lighting, fresh-air exchangers, and more, sending real-time alerts to building managers’ smartphones. Early results are showing a better than $3 for $1 return on investment, and Beacon expects to expand use of this technology to properties through the Boston market and others.
“Early results are showing a better than $3 for $1 return on investment“
Beacon uses smart-building technology at properties like 53 State to optimize air exchange on each of the building’s 40 floors relative to the actual number of people working or visiting an individual floor, as measured by turnstile and elevator traffic. That avoids needless over-operation of air circulation fans in unoccupied or sparsely occupied floors. The 53 State building was also one of the first in the City to have regenerative elevator technology installed –- the energy generated by the braking of descending elevators is captured and used for building operations, much like an electric vehicle’s braking helps rechange the battery.
“Beacon’s energy efficiency work will help the company comply with standards like BERDO, but our focus is our commitment to sustainability as well as profitability.” says Beacon Capital’s Managing Director, Al Scaramelli, who manages all of Beacon’s facilities operations, environmental, and sustainability programs nationwide.
The Results
The company’s extensive efforts have earned it EPA Energy Star Partner honors for 13 consecutive years. At 23 of their locations, Beacon has partnered with third parties to install and operate solar photovoltaic energy installations totaling 6,000 kilowatts. These off-balance-sheet projects have saved the company $35 million in direct outlays while delivering both cost savings from below-utility-priced power and reduced emissions. Beacon consistently structures green energy purchases for its buildings using third-party capital and ensures that the investments in clean energy remains in force for new owners if Beacon chooses to sell a property.
“We recognize that there are very large knowledge gaps between what companies like Beacon know about energy efficiency and BERDO compliance and what smaller property owners know,’’ Scarmelli says. “We’re committed to using our participation in the work of the Green Ribbon Commission to share our experience and knowledge and help close those gaps.”
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