At the time of acquisition, Seven Springs was one of Ross Companies’ largest single assets and it was wholly owned by the Ross family, so when it came time to selecting a partner for this energy savings contract, they wanted a company that was able to understand not just the value of the savings but also the underlying value of the real estate asset.
Seven Springs is a 33-acre campus located in College Park, Maryland. The project is owned by The Ross Companies, a family-owned real estate development and property management firm based in Bethesda, Maryland. The property has been in their portfolio since 2002. Ross specializes in multifamily and mixed use communities throughout the Washington, DC Metro Area and currently manages just over 13,000 multifamily units. Seven Springs Apartments contains multiple property types in a single location: one high rise apartment building with ground level retail and daycare facility, two mid-rise buildings, 20 garden apartments, and a clubhouse/leasing center with two outdoor tennis courts and a pool. In total there are 982 units and 16,864 light bulbs. NextGen LED retrofitted all of the lights on this campus including exterior, common area and in-unit lighting.
The total project cost was $778,339. NextGen LED provided in-house financing for 80% of the project costs at 4.2% and secured Small Business utility-based financing at 0% for the remaining 20% of the project costs, bringing the total cost of capital to just 3.36%.
In addition, NextGen LED (through a total of 29 individual rebate applications comprised of small business and existing buildings) was able to secure $263,749 in rebate dollars for this project.
In all, our client spent $0 to implement this energy savings project, received a check from the utility upon completion of installation in the amount of $263,749, and was still able to immediately realize 15% of the energy savings on this project. At the completion of the 46 months finance term, Ross Companies will realize 100% of the energy savings.
The desired project deliverable of financial savings was well achieved. However, the clearer, crisper light of the LED provided a significant aesthetic enhancement to the property as well. Hallways were brighter, colors were bolder and the consistency of color across all hallways created an upgraded feel to the facility that was unexpected by ownership and an added, uncalculated benefit in terms of resident satisfaction.