How It Works

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Take a $100M project, with plans for 500Ksqft of mixed use (office & retail). Depending on the location (weather, construction market, etc) and the mechanical design, the heating & cooling systems can be 10% or more of the cost of this project, or $10M. The cooling plant is probably around 1500 tons of cooling and the heating plant roughly 11Mbtu. Generating this capacity could be 1/2 of your HVAC budget, or $5M.

Take what is normally produced within each building and "centralize" this production. It can be on the site, on top of one of the buildings, or even inside one of the buildings. You've consolidated $5M of the project into a separate "development" and reduced your development to $95M.

Let us help you explore a myriad of financing options. Utility rebates. Tax incentives. Depreciation. Short and Long-term leasing of the $5M worth of equipment via the manufacturers. "Wet utility" agreements with future tenants; not much different from electricity and gas (pay as they use). Bottom line, investors and banks love "recoverable assets". No one buys a copy machine anymore, they pay by the page.

Regardless of the financing, there is a great deal of opportunity to explore the cost/benefit of "more expensive/more efficient" plants versus "less expensive/less efficient". We can guarantee that the "Package Plant" from a factory will cost less and operate more efficiently than the same plant built in the field.