30 THE BOND- Sydney, AU

With a name so demanding, one has to assume the building has the same presence. We were not disappointed when visitng our final project of the class. Long regarded as Australia’s premier “Green” building, 30 The Bond’s owner & developer Lend Lease/Bovis headquarters on site. The building was Australia’s first 5-Star NABERS & 5-Star Green building, setting the tone for sustainable building in the region.

A Design Executive from Bovis spared some of his time to give us a tour and to reveal some of the major sustainable attributes of the iconic building.
The 9-storey building is fully cooled by a chilled-beam system, along with creative design attributes for wind drafts coming off the internal preserved wall. During the excavation process, the team came across a historic wall that was said to be preserved, forcing design changes late in the project. The wall is said to be built by early Sydney convicts, and provides a historic attribute to the project. There are automatically controlled external and internal blinds to keep the heat out, along with allowing 60% of its tenant’s external views. The design entails low VOC paints and carpets, a roof garden with low maintenance native plants. All wood decking used is from sustainable resources, and the ventilation system is state of the art.

With the day coming to an end, we joined one last time outside of the Bond for final instructions for blog completeion by Dr. Forgey. It has been a once in a life experience, with tons of interesting and educational lessons learned. I truly had an amazing time with the group and all of the entities that hosted us, and look forward to trekking back soon!

G’day mates, NO WORRIES and Cheers!

Grocon Construction/LIM Project- Sydney, AU

Thursday January 13th, 2011. The last day of class has arrived, and an end to our journey “down under” is in sight.
To get the day rolling we started off by meeting with a PM from Grocon Development, accompanied by an Asset Manager from LIM (equity partner). 161 Castlereigh is the project they are undertaking together, a ground up development of one of Sydney’s most treasured piece of real estate.
The 50-story building will have a penthouse suite at the top level, a tactical decision made to please the original land/building owner. The project is in the excavation process, with construction planned to begin next month. The objective is to build the property to a 5-star Green Star level, and also a 5-star NABERS rating. Construction completion is slated for 2013, making the full project timeline from due diligence to completion 13 YEARS! Patience is a virtue in the real estate world, but even more so if you are dealing with the rezoning and “red tape” in developing in Australia!
Grocon is the nations largest private real estate developer, with a highly respected pipeline and past performance history. For the Castlereigh project, we managed to learn a few things about their plans for creating a “sustainable” project. The building is 75% pre-leased with high credit tenants Freehills Law Firm, & ANZ Bank. Here a few key points and attributes about the project:
-Fresh air intake w/ ventilation for increased productivity
-ANZ Bank REQUIRED this feature in their lease, justifying their internal “green” initiative.
-LED lighting
-Rainwater harvesting system for sinks & toilets
-95% of demo waste was recycled
-Auto light dimmers & blind lowering sensors for different times of the day
-Trigeneration plant with use of natural gas, attempt to stay completely OFF of the energy grid
-Exploring possibility of a vertical axis wind farm atop the building for energy independence
-Solar panel systems

Ultimately, projects like this and the upcoming Central Park project by Frasers International are justifying the strong office market in Sydney. I look forward to seeing this project completed the next time I make it over to Australia!

GBCA-Sydney, AU!

It would only be appropriate for our group to visit the entity that implements the sustainable development initiative in Australia, the Green Building Council of Australia. Robin Mellon, Executive Director of Advocacy, was kind enough to host a presentation at the Council’s headquarters. He went in depth about the Strategic Activities, costs involved, their own office’s sustainable attributes, while wrapping it up with a solid Q & A.
They operate as a member-based non-governmental entity, and since 2002 they’ve grown to become a 60 employee group. They have 900 member organizations as support, along with occasional federal grants and sponsorships. They also offer classes and certification training for additional income. Robin’s vision currently is to widen the standards into communities; away from individual “green” buildings like the market currently produces.
GBCA has 9 “Impact Categories” as part of their rating scale when giving the Star designations. From a tenancy prospective, it is important to keep an eye out for both the rating, and the year build. Since the market dynamics and products available are constantly changing, knowing what year the rating was issued is also equally important.
Costs associated with Green Star rated buildings are as followsL:
4-star rated buildings are generally a +/- 2% premium
5-star buildings coming in at +/- 5%
6-star buildings run generally higher than 5% & are considered “World Leadership” status!
Touching on the actual office space they occupy, he provided the following details:
-Automatic sunlight-sensor blinds
-Fresh air ventilation
-NO hot water heater
-Auto-dimming lights/LED bulbs
-Rainwater collection system (75% of water used is derived from it)
-Interface floor carpet (recycled materials)
-No suspended ceiling
-Carbon Dioxide/CO2 sensors…they automatically transmit fresh air to densely populated portions of the office

Wrapping it up, Robin walked us to the elevator and loaded us all up. Considering how much we’ve all been eating, the elevator beeped due to overcapacity, so Travis and I had to stay back to catch the next ride down!

One last day for the tour, see you all tomorrow Mates!

Legacy Properties- Sydney, AU

Legacy Partners may be a young firm, but Principal Matthew Hayder proved to us that to be successful abroad, being multi-faceted and open minded is vital. He and a prior colleague of his from Macquire Bank in Sydney partnered up under 2 years ago to form this Development/Consultancy firm. Matt is a Texan with a degree from Princeton and strong understanding of real estate across the world. He was kind enough to entertain our group in his new offices boardroom to discuss real estate in Australia.

He touched in detail about development in Australia vs the US (acquisitions/approval process, design, valuations, taxation, & sustainability).

A few interesting points I took away from our meeting are:

-Residential leasing is frowned upon in and essentially non existent in Australia.
-95% of properties are bought in an "auction" like setting, leaving virtually no time for the due diligence process (agent benefit, as prices get driven up!)
-Raw land and Institutional grade properties are the only types that usually get dealt through "private treaty," or traditional sales.
-MINIMUM of 3 years for a variance to be granted, as the Councils have much of the power to make or break deals...wine and dine em' boys!
-Capital Gains tax is determined by taking 50% of your nominal tax rate...interesting...but need to think further and apply to scenarios.

Matthew briefly touched base on the sustainable aspects of Australian development, talking about BASIX & NABERS. Overall, I think getting insight into how real estate happen here was more than enough...cheers to him for that!

G'day mates!

Sustainable House ( Michael Mobbs) & Central Park- Sydney, AU

Michael Mobbs must be one of the more interesting people I've met in my life. There are few people that will go to the extremes and seemingly inconvenience their lives(he disagrees with this, even more of a reason to respect him!), merely to prove a point to the world. Nonetheless, 2 books later and a complete life restructuring later he has done exactly this, all while being as happy as one can be.

His libertarian mindset and ideology were VERY interesting, and I think we all took a few key points away from the Sustainable House Tour. We were honored to get a full run through of the wastewater/rainwater harvesting system, composting process, and all of the many other products/processes he has implemented in his home. Who said being a minimalist had limitations?

The home is a net exporter of energy, as he is off of the power/water/sewage grid for most of the day...tapping into is only at night as needed. Average ANNUAL utility costs are $300, compared to a compared to $3000 for a similar home in his neighborhood.

Michael was very kind by providing his time to us, so in return we took him out for lunch at the Rose Hotel Pizzeria. Amazing Tandoori Pizza, marination at its best.

Thanks Michael!


As we left the "Chippendale" neighborhood, we came across a marketing building for the $2billion "Central Park Sydney" project coming up next door. Being the inquisitive students we are, we had them to give us a tour along with details of the progress. Turn out that the project had many "sustainable" attributes. The development truly looks to be world class, as it will surely redefine condo living in this part of the world. 380 of the 500 units have been PRESOLD!. The demand is here, and it looks like Australia is surely secure from the "global" real estate meltdown. Simply stunning project.

Powerhouse Museum- Sydney, AU

In our debut in Sydney, the first stop was a sustainable exhibit called EcoLogic at the Powerhouse Museum. So after a "quick" stop at the Opera House/Hyde Park, a METRO Monorail ride across town, and a "family style" lunch in Chinatown, we finally reached our destination in style (as usual). Only thing missing was Chance's Chuck Taylor kicks. lol

After waiting for Dr. Forgey to make his way through the ABBA show, we collectively scurried down to the EcoLogic exhibit.

The floor had a plethora of information via displays and products, enough to keep us busy viewing the best of whats going on in the rapidly growing marketplace. From rooftop solar panels/water heaters to "green" cleaning products, the exhibit was the epitome of a "sustainable house." I found it interesting that NASA was a "gold sponsor," as there is nothing like it being displayed in the States for educational purposes (in a Museum environment). The prospective Ft. Worth Center could take many details from it, and I am sure Dr. Forgey was taking mental notes.

Thereafter, the 3 of us amigos split ways and hit World Square for a quick rub-down...nothing like rejuvenation!

BritoMart-Auckland, NZ

Sleek and contemporary, the BritoMart project is making a stern push to redevelop the lower Auckland dockyards area. Owner/Developer Cooper & Company out of LA has Hawkins Construction spearheading the construction. Sara Ballantyne, Development Manager for Cooper & Company, & Terry Buchanan, CM for Hawkins both were great hosts for the property tour(East 1 & East 2 buildings).

The development will sit on 5.8 hectares with a 125 year ground lease, and consist of 17 heritage district buildings, along with 7 new structures being developed (of which all will be Green Star rated!). Total project cost? $210 million.

Of the buildings we saw, the train station runs directly below them, adding tremendous value. First floor retail is currently 70% pre-leased, and a 1,250 car garage is under construction caddy corner to the office space. Both buildings have rainwater harvesting systems, with waste water recycling capabilities. They also have temperature control, along with an internal stair well linking every floor openly; ultimately encouraging use of the stairs! The buildings are primarily built with structural steel and has 14 elevators.

Tenant pays: Rent + Opex + "Precinct Cost"...awesome for a landlord!

But then again, the tenants are as follows:

Westpac Bank=50% of the office space
Earnst & Young= 30% of the office space
Soutern Cross Health= 20% of the office space
= 100% PRE-LEASED with LONG TERM LEASES! *note*(Dallas average office vacancy= 20%)
12 yr leases w/ 12 yr options

Interesting enough, the top 3 floors were originally slated to be residential penthouses to be sold for $3M a pop....but since the market fell flat, they convinced Westpac to make that space their "Exec floors." And of course, since banks are doing very good now days, they agreed. Amazing...lol

Although they have leased the space now, the top 3 floors have been built as "flex space" with the ability to convert from office to resi quickly and efficiently (without having to rip much apart). An interesting fact we came across was that since Westpac wanted to blow out space on each floor after design deadlines, they will be paying for the costs to do so, AND pay for the airspace as normal square footage...TOO MUCH MONEY?

One things for sure, the Westpac CEO will be loving life from his new office and personal balcony (I am pictured above regulating and calling the subs around from atop).

G'day mates!

Hamilton Gardens-Hamilton, NZ! Maori Culture is ALIVE!

After dropping Dr. Forgey off at Waikato College where he was giving a speech at a Sustainability Conference, the rest of us took off down the street to visit the "Sustainable Backyard" at Hamilton Gardens (just one of the many gardens there!).

It is a public park overseen by the Hamilton City Council. According to the receptionist, Hamilton Gardens is regarded as one of the "7 Gardens to see in the World." The garden displays procedures to create a sustainable growing system on a small scale, explaining topics such as composting, recycling, rainwater harvesting, etc. A very interesting experience indeed.

The Aquatic Center- Rotorua, NZ

The Rotorua Aquatic Center welcomed us for a very informative tour. The city is famous for it's Geothermal hot springs, and from what we witnessed it was clear that the Director of the center wanted to use that trait to be sustainable. The full staff shares in this vision, as they have received the "Qualmark-Enviro Gold" accreditation. All of the pool water is warmed using a simple pipeline system connected to a geothermal heat source outside of the building (the city virtually sits on a volcanic land mass!). This, along with their water conservation plan has yielded them a savings of 25% on average since the program was implemented. They have annual water usage audits done, and have come out every time with savings. Also, there is a recycling program and "rubbish fee" program in place. Our guide was kind enough to tour us around the property, explain the systems, and allow us to enter her "shrine," an organic garden behind the building! Overall, it was a very eye opening experience, as I saw that sustainability is not something native Maori's practice, it is a way of life!

IronBank development...via Arun's Indian Restaurant!?!

A $38 million work of art, this project is like none other we've seen. We were lucky to get into the building/courtyard/carpark, thanks to the owner of the Indian restaurant next door (side door access!). The project looked to be 75% or so vacant, and the builder decided to move forward with it during the collapse in the real estate market 3 years ago. Apparently, the owners are a wealthy bunch (Sampson Group), and have enough $ to be picky as heck with who they lease to. Originally slated to be a full on residential project, the owners had to re-structure during the design phase, and turn it into office/retail. Talk about flexibility. The state of the art car parking system (stacks cars from a platform!) was the coolest part of the project, a mere $15 million dollars for the system!

We herded into Arun's restaurant for a few tasty items thereafter to show respect for his help. G'day mates!

Auckland, NZ...Let the journey begin with Stanley Construction!

Upon arriving into Auckland from Melbourne (sorry for not blogging that part folks!), Dr. Forgey set the tone straight with an early morning appointment (courtesy of Mr. Martini's YPO network, once again!)

Stanley Construction was our first stop, where we met with Business Development Manager, Gary Caulfield. He gave us a run down on the firm, and it turns out that it is a 87 year old firm, with multiple business units: Construction, Joinery, Eco-Build, & Modular. The origins trace back to a town outside of Auckland called "Mata Mata."

Gary gave us the scoop on construction in New Zealand by first touching on framing practices from 1983 to 2006. Many problems have risen in residential and commercial buildings built during that time period, as most builders used "untreated" timber, leading to a nationwide epidemic dubbed the "leaky building sydrome." A whopping 99% of construction overall was and is still done with wood, and when it is untreated, one can imagine what types of problems can arise. The wood would naturally rot, and if not, termites easily feasted away, resulting in brand new buildings collapsing. He went through a PowerPoint presentation detailing a few projects they have worked on to restore buildings that have suffered from this issue, one that is costing the New Zealand Government and involved parties somewhere between $12-$22 billion NZD! Private sector developers have to cover 25% of the cost, with another 25% being picked up by the Govt., leaving the remainder 50% to an interest free federal loan to builders! Talk about sweet deal for this BAILOUT. Lawyers in particular did not like this, as this was eating into their profits from litigation earnings. A few of the projects that he touched on were the Waiheke Island Resort & a Ski Resort nearby.

Gary was very helpful and well versed with the NZ Green Building Council's practices, and went into detail about his grass roots involvement from the early days. They went from zero to 300 members in under 1 year! Ironic enough, this "green" fellow's wife is spearheading inspections for Green Star rating awards. They work hand in hand with The University of Auckland to further enhance the rating tools for the Council, which originally took much of the fundamental structure from Australia's Green Building Council.

SHAC! New Zealand

"Sustainable Habitat Challenge" is a New Zealand based organization formed to encourage young people to get involved with the sustainable housing world. Nine teams from around the country will compete to design and build the best projects by October 2011, when there will be a SHAC National Conference with peer review, expert review, & awards.

The teams focused on many things ranging from building with materials from recycling, building an adobe, and composting through worm farms.

Overall, this gives us great insight into how far ahead NZ is in the Sustainable movement, and they are proving that their standard of living does not have to take a hit over and over now.

www.shac.org.nz

Sustainable Projects DOWN UNDER

As we embark on our soon-to-be epic journey DOWN UNDER, I know we all have specific "Sustainable" projects we would like to visit. I have detailed a few that have caught my interest below:

1)2010 National Award for Sustainable Architecture--Surrey Hills Library, Sydney
http://inhabitat.com/surry-hills-library-australias-new-standard-of-sustainable-excellence/

2)Complete Redevelopment of the Waterfront area in Auckland, NZ
http://www.waterfrontauckland.co.nz/Home.aspx

3)30 THE BOND--Sydney's Greenest Office Building
http://inhabitat.com/30-the-bond-sydneys-greenest-building/

4) CUNDALL Sydney Headquarters--ONLY LEED Platinum Building in the Southern Hemisphere, although, I CANNOT find a picture of the building ANYWHERE...kind of weird...maybe we can drive by this TOP SECRET HQ!
Click first link and scroll down to AUSTRALIA...only building!
http://www.mlandman.com/gbuildinginfo/leedplatinum.shtml
Property Address from Website...
http://www.cundall.com.au/contact.html

5)Kakariki House in Hamilton!--small/cozy/recognized project to check out...
http://www.wisegroup.co.nz/page/71-What-039-s-new+Kakariki-House-Waikato-039-s-first-green-building