WashREIT leverages green bond funding to achieve BREEAM certification of eight assets

WashREIT allocated a majority of its $350 million inaugural green bond offering to green building improvements and certification as part of a multipronged ESG strategy addressing energy efficiency, water efficiency, and renewable energy.

Version: BREEAM In-Use Version 6
Developer/ Client: WashREIT
Assessor Organization: UL Verification Services Inc

About the Project

In April 2021, the Washington, D.C.-based firm WashREIT (NYSE:WRE) announced the expansion of its Green Bond Framework for eligible green projects, including eight multifamily assets acquired in 2019. As outlined in this framework, WashREIT set out to achieve BREEAM In-Use Very Good certifications for the majority of these assets.

The firm allocated the majority of proceeds to assets that were slated to achieve BREEAM certification as part of a multipronged approach for addressing energy efficiency, water efficiency, and renewable energy projects across its portfolio… Despite the COVID-19 pandemic, WashREIT’s commitment represents a part of the booming green bond market, which exceeded $1 trillion globally by the end of 2021.

The assets’ certification process was led by an independent third-party assessor UL, a global safety science leader. UL’s role was critical to WashREIT’s achievement of safety, security and sustainability goals across the portfolio, as the assessor provided third-party verification of each building’s sustainable quality and ESG performance.  

Challenges

“We’re focused on existing Class B assets – and historically, this asset class has lacked in sustainability investments. But residents and investors alike care about sustainability,” said Paul McDermott, President and CEO of WashREIT. “As we work with BREEAM, our goal is to create opportunities for the industry and other operators to also find ways to invest in sustainable improvements and achieve ESG certifications for their assets.”

While pursuing BREEAM In-Use residential certification, the age of some of the assets presented challenges around gathering building lvl drawings and construction details, which are needed to document various credits accurately. Along with their age, the nature of multifamily units also created difficulties surrounding the creation of inventories for all heating, cooling and hot water systems — which have been replaced as needed and varied significantly in efficiencies at each building. Similar challenges were faced around water fixtures, as well. Ultimately, the inability to acquire community lvl energy and water consumption data also prevented WashREIT’s projects from pursuing Management Performance Certification.

Solutions, Benefits & Next steps

This certification initiative launched on the heels of WashREIT announcing a new energy consumption reduction goal of 20% by 2025, below a 2015 baseline, mitigating the portfolio’s impact on climate change.

Four of the eight properties that pursued certification achieved the Very Good Rating under Asset Performance. Pursuing BREEAM certification prompted an effort towards comprehensive inventory creation and digitization of existing building drawings. The project teams were also successful in reviewing and improving upon the existing recycling infrastructure, tenant outreach and communication.

The BREEAM certification provides a comprehensive standard for achieving sustainability across the lifecycle of a project. BREEAM In-Use Residential certification provided an assessment method to measure, evaluate and reflect the performance of residential assets against best practice in an independent, cost-effective and robust manner.

Is there anything that multifamily/ residential real estate professionals in particular should be aware of when it comes to sustainability and ESG?

Sustainability and ESG should be looked at from the perspective and experience of day-to-day occupants, with consideration for how design and infrastructure decisions impact every resident’s health and well being, as well as their environmental footprint. Ensuring good indoor air quality by incorporating CO, CO2 sensors, humidity sensors and good ventilation were key solutions implemented by WashREIT, in addition to providing efficient equipment and water fixtures. Applying sustainability practices common in commercial office spaces does not fully translate to a residential community (such as recycling infrastructure and transportation amenities), so that strategy should be avoided. Multifamily professionals should instead focus on gathering feedback from their communities’ residents and property management; this would go a long way in crafting a sustainability and ESG strategy that really works in a residential setting. 

“This is a momentous achievement for the US REIT market to recognize the caliber and rigor of the BREEAM certification program, particularly for WashREIT’s multifamily assets in the Washington, D.C. metropolitan area”, said BREEAM Director Shamir Ghumra. “The challenge in meeting a Very Good certification, which represents the top 25% of BREEAM certified assets, demonstrates an important next step in WashREIT’s commitment to benchmarking, verifying, and sharing sustainability best practices across their portfolio. We applaud WashREIT as a trailblazer in the U.S. for this high-performance investment.”

About WashREIT

WashREIT owns and operates uniquely positioned real estate assets in the Washington D.C. market. Backed by decades of experience, expertise and Our portfolio of 43 properties includes nearly 7,000 multifamily apartment units and approximately 3.4 million square feet of commercial space. Our shares trade on the NYSE and our company currently has an enterprise value of approximately $3 billion. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation’s most competitive real estate markets. To learn more, please visit washreit.com.

About BREEAM

BREEAM is the world’s leading sustainability assessment methodology for masterplanning projects, infrastructure and buildings. It recognizes and reflects the value in higher performing assets across the built environment lifecycle, from new construction, through performance in operation, to refurbishment. BREEAM does this through third party certification of the assessment of an asset’s environmental, social and economic sustainability performance, using standards developed by BRE. This means BREEAM rated developments are more sustainable environments that enhance the well-being of the people who live and work in them, help protect natural resources and make for more attractive property investments. Learn more at www.breeam.com.

BREEAM USA case studies

Browse the latest case studies from BREEAM USA

 

Pursuing BREEAM USA at LORD Green Strategies headquarters, Dallas, Texas

Pursuing BREEAM USA at LORD Green Strategies headquarters, Dallas, Texas

The LORD Green Real Estate Strategies, Inc. headquarters is a 6,663 square foot building located nine miles northeast of downtown ...
Read More
2880 Junction, USA another BREEAM Good certified building within Silicon Valley

2880 Junction, USA another BREEAM Good certified building within Silicon Valley

MetLife Investment Management uses its buildings’ sustainability certifications to provide a foundation and help guide current and future sustainability initiatives ...
Read More
3050 Zanker, USA achieves BREEAM Good with building located in Silicon Valley

3050 Zanker, USA achieves BREEAM Good with building located in Silicon Valley

3050 Zanker is a 2 story Class A commercial R&D office building located in the San Jose submarket of Silicon ...
Read More
The first office building with a verified score under BREEAM In-Use in the US, Three Ballston Plaza

The first office building with a verified score under BREEAM In-Use in the US, Three Ballston Plaza

Built in 1990, this 342,280 square foot Class A multi-tenanted office building is located in just 5 miles from the ...
Read More
The Energy Conservation Office strives to make campus buildings operate more energy efficiently

The Energy Conservation Office strives to make campus buildings operate more energy efficiently

The Energy Conservation Office received an Excellent rating in all three assessment portions: Asset Performance, Building Management, and Occupier Management ...
Read More
University of California, Davis: BREEAM In-Use Excellent rating unlocks flexibility

University of California, Davis: BREEAM In-Use Excellent rating unlocks flexibility

Built in 2001 and located in Davis, CA, Plant and Environmental Sciences is a 3-story, 126,651 ft2 building that provides ...
Read More

Get in touch

Contact us now or call us on 0333 014 7880 if you would like to talk to our team about how BREEAM can support you.