Maximizing Yield and Sustainability with the Passive House Standard
The era of sustainable real estate development is here. More than a trendy buzzword, sustainability is a necessity for forward-thinking developers like Arnold Development Group. We're paving the way to a greener future with our rigorous commitment to the Passive House standard, an energy-efficient building standard that not only reduces energy consumption but improves indoor air quality and enhances residents' comfort.
Our Proven Model:
Our landmark project, a 276-unit Passive House certified building nestled in the vibrant River Market neighborhood, is a testament to our approach. With its stellar location and superior construction quality, we filled it to capacity in merely seven months, securing top of the market rents without any concessions.
The secret behind our success lies in our meticulous construction methods and a wholehearted commitment to sustainable design principles. With features like 16” thick insulated precast concrete wall panels, cast in place concrete floors, triple-glazed windows, and thick demising walls, our buildings offer unrivaled resilience. This commitment extends to our creation of community spaces, like our expansive 55,000 sf rooftop gardens and landscaped courtyards that provide ample opportunity for residents to grow vegetables and socialize outside.
The Financial Advantages of Sustainable Design:
At Arnold Development Group, we've discovered an exciting intersection between sustainability and profitability. Our Passive House certified buildings excel in energy efficiency and storm-resistant structures, thereby increasing our properties' yield in two significant ways:
Inclusive Electric Utility Cost: We incorporate a $200 market-rate electric utility cost into the monthly rent. We cover this expense, but the actual electricity cost is much lower due to our buildings' energy efficiency. For instance, the average electric bill for a unit in our River Market neighborhood project is just $79 per month. This discrepancy allows us to gain an additional $121 of income per unit per month.
Reduced Insurance Premiums: Our buildings' concrete construction, superior to conventional wood-frame construction, results in lowered insurance premiums. Our robust structures withstand extreme weather events better, resulting in fewer insurance claims. Therefore, we enjoy insurance premiums as low as $46 per unit per month, a stark contrast to the higher premiums associated with wood-frame buildings.
In leveraging these advantages, we can offer investors an attractive yield while also delivering sustainable, high-quality housing to our residents.
Conclusion
Arnold Development Group's unique approach to multifamily housing development offers a win-win situation. Investors reap the benefits of a higher yield, and residents enjoy the comfort of living in sustainable, high-quality housing. As we continue to face the stark reality of climate change, it's clear that sustainable, energy-efficient housing isn't just a trend — it's the future of real estate development. Our model not only represents a compelling investment opportunity but also sets a new standard for real estate developers worldwide. Join us as we continue to shape the future of multifamily housing, making it more sustainable, resilient, and profitable.
