The demand for renewable energy continues to grow. More and more, facility leaders are looking for a way to improve sustainability with large-scale solar programs that establish their environmental commitment and provide matching financial rewards. For professionals managing multiple properties, “going green” at one facility alone can be challenging enough. Implementing renewable energy across a portfolio of properties can seem even more daunting.
Consisting of 85+ properties across 19 states, Macerich is a fully integrated, self-managed and self-administered real estate investment trust which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Under the stewardship of Vice President of Sustainability, Jeff Bedell, Macerich continued to fulfill its pledge to environmentally sound practices with the game-changing decision to implement solar across their portfolio.
Clearing the Hurdles
The three main hurdles faced by all facility managers when going solar – financing, implementation, and operations and maintenance – were magnified by Macerich’s substantial portfolio of properties.
Tax equity financing in general is extremely complex, requiring customized transactions tailored to each individual project. Needless to say, creating these unique finance structures for each of the properties served as a main roadblock for Macerich. The question of ownership of the systems was also a major concern. To take adventage of available tax incentives, given the limited tax capacity of Real Estate Investment Trust (REIT) entitites, third-party ownership was crucial.
Twenty Ninth Street Mall, Boulder, CO
In the implementation phase, Macerich was faced with catering to the unique specifications of multiple properties located in a number of states, each with their own permitting and procurement regulations. Some locations had straightforward installation conditions, while others featured spaces that required high-level design and construction expertise. In addition, implementation without interruption to retail business was crucial.
Operations and long-term maintenance of each system posed its own distinctive set of challenges. While there was no shortage of companies available for operations and maintenance at the beginning of the endeavor, there existed a cavernous lack of companies in which Macerich could trust to be dependable, consistent providers of those services for more than two decades across their national portfolio.
While daunting, Macerich was excited to play the role of pioneer in the sustainable development of large REIT portfolios.
The Solar Solution
In response to frustrated expressions of facility leaders managing a broad range of projects, Panasonic, in an exclusive partnership with Coronal Group, developed a turn-key, end-to-end solutions based platform able to directly address finance, implementation, and operations and maintenance concerns.
In 2011, Macerich aligned with Panasonic to begin their REIT power program. With a customized financing structure, Panasonic was able to compensate for Macerich’s lack of tax appetite and support the utilization of the varying federal tax credits and local incentives pertinent to each individual property. Panasonic’s unique comprehensive solution also resolved the issue of ownership, providing the third-party entity responsible for carrying the systems as assets via their relationship with Coronal Group.
With their extensive global network, Panasonic ensured quality implementation for every aspect of each individual project, regardless of location. And, as a nearly 100 year-old, $65 billion company, Panasonic guaranteed its ability to fulfill the 20 year commitment to sustaining expert operations and maintenance of Macerich’s solar systems.
Together, Macerich and Panasonic are nearing the successful installation of solar across 11 shopping centers totaling 10 MW of clean energy – enough power for approximately 10,000 homes.
Related Stories
| May 3, 2012
Best commercial modular buildings and marketing programs recognized
Judges scored entries on architectural excellence, technical innovation, cost effectiveness, energy efficiency, and calendar days to complete.
| May 3, 2012
Zero Energy Research Lab opens at North Texas
The living lab—the only one of its kind in Texas—is designed to test various technologies and systems in order to achieve a net-zero consumption of energy.
| May 3, 2012
NSF publishes ANSI standard evaluating the sustainability of single ply roofing membranes
New NSF Standard provides manufacturers, specifiers and building industry with verifiable, objective criteria to identify sustainable roofing products.
| May 3, 2012
Gilbane to provide CM services for North Reading’s integrated middle/high school
The project scope includes a wastewater treatment plant, demolition of the existing high school and extensive athletic fieldwork.
| May 2, 2012
Building Team completes two additions at UCLA
New student housing buildings are part of UCLA’s Northwest Campus Student Housing In-Fill Project.
| May 2, 2012
Public housing can incorporate sustainable design
Sustainable design achievable without having to add significant cost; owner and residents reap benefits
| May 1, 2012
Construction is underway on MLK ambulatory care center in L.A.
Featuring a variety of sustainable features, the new facility is designed to achieve LEED Gold Certification.
| Apr 30, 2012
Summit Design + Build completes build-out for Office Concepts
The project is seeking LEED ID Silver certification from the U.S. Green Building Council.
| Apr 27, 2012
GreenExpo365.com to offer webinars on EPA’s WaterSense Program
Architects and builders interested in developing water-efficient buildings invited to attend free sessions featuring experts discussing water-efficient building practices.
