1. Burnham-Moores Center for Real Estate University of San Diego Master of Science in Real Estate Presentation Bullitt Center April 30, 2013 Thomas Bobo Justin Farrar Zabrina Johal Please do not quote or use this presentation without appropriate recognition. Thank you!

2. GOAL: revolutionize how commercial buildings are designed and built and eventually turn a profit Opened on April 22, 2013—Earth Day! Living Building Challenge Located at 15 th Avenue and East Madison Street Burnham-Moores Center, MSRE Program, University of San Diego “The Greenest Commercial Building in the World” 1 MILE

3. Burnham-Moores Center, MSRE Program, University of San Diego

4. Major Players Owner – Bullitt Foundation –Established in 1952 by Dorothy S. Bullitt –Inherited 28% of the King Broadcasting Stock in 1989 –Devoted to protecting and restoring the environment of the Pacific Northwest –Leases half of the top floor (6 th ) Architect – The Miller Hull Partnership –Established in 1977 –Emphasis on socially responsible and human public architecture –Diverse assortment of projects –Reputation is based on simple, innovative and authentic designs Developer – Point 32 –Delivers quality buildings, strong financial returns, and pride of ownership –Leases the entire 4 th Floor Burnham-Moores Center, MSRE Program, University of San Diego

5. Bullitt Center Drivers –State of the art demonstration –Goal: build the greenest possible building ever built “A little pricey” –Construction costs added up to $355/sf ($55/sf more than typical) –Slightly less than most new building downtown Located 1 mile east of downtown – far removed from amenities –Does not appeal to the typical tenant Appeals to first-of-a-kind adopters with “green” values Burnham-Moores Center, MSRE Program, University of San Diego The Bullitt Center: Worth Every Penny for Tenants with Similar Intrinsic Values “We aren’t making the move due to dollars and cents, but because we want to be part of something pioneering that reflects our values.” - Bullitt Center Tenant

6. Multi-Tenant 50,000 S.F. Office Building The building was preleased and open to the public Tenants started moving in March 2013 Multi-tenant – 80% leased Burnham-Moores Center, MSRE Program, University of San Diego FloorTenant, Current Leasing Status 1 Leased - International Living Future Institute, University of Washington Integrated Design Lab 2 Interchange Media Art Productions (400 sf), ~ 2k square feet remaining 3 ~ 8k square feet remaining 4 Leased – Point 32 (desk subletting) 5 Leased - Intentional Futures 6 Leased - 50% Bullitt Foundation

7. Bullitt Foundation Education partners: University of Washington and Cascadia Green Building Council Department of Planning and Development New Market Tax Credits US DOE and Pacific Northwest National Laboratory Tenants Still seeking philanthropic partners to fully realize the vision – Center for Energy and Urban Ecology and McGilvra Place Green Infrastructure Burnham-Moores Center, MSRE Program, University of San Diego Project Realization

8. Projected to meet the Living Building Challenge –Site, water, energy, health, materials, equity and beauty –Performance-based and evaluated after one year of operation 2012 Forest Stewardship Council Design & Build Award –Use of sustainable lumber 2012 Seattle AIA Award –Best in sustainable design LEED Platinum Burnham-Moores Center, MSRE Program, University of San Diego Awards and Certifications

9. Challenges Burnham-Moores Center, MSRE Program, University of San Diego Design 1) Energy consumption 2) Energy generation Materials Safe, non-toxic, and durable materials Regulation Rainwater use, roof overhang, restrooms

10. Design Burnham-Moores Center, MSRE Program, University of San Diego All image sourced from Bullitt Building official blog

11. Composting toilets Phoenix Composting Toilets from Advanced Composting System of Whitefish, Montana Saves water, energy, and eliminates nutrient release into the watershed Unique to commercial buildings Burnham-Moores Center, MSRE Program, University of San Diego

12. Solar Energy Burnham-Moores Center, MSRE Program, University of San Diego Seattle Annual rainfall: 38.6 in Cloudy days: 225 Rainy days: 150

13. Daylighting Burnham-Moores Center, MSRE Program, University of San Diego Daylighting analysis of early atrium scheme showing limited daylight effects on levels 5&6 False color imaging of a photo taken inside a physical model of the level 2 mezzanine provides visualization of luminance levels and the influence of a skylight.

14. Interior lighting effects: ceiling height Burnham-Moores Center, MSRE Program, University of San Diego 14’2” ceiling height 38% of the floor area has daylight levels below the 2% daylight factor 77% of floor has daylight levels below the 2% daylight factor 11’6” ceiling height N Orientation 39% increase

15. Rainwater cistern City of Seattle has not approved treated rainwater to be used as a potable source. Ownership of rainwater is contentious issue. Burnham-Moores Center, MSRE Program, University of San Diego

16. Pop Quiz Burnham-Moores Center, MSRE Program, University of San Diego Water Capture: –Seattle has a higher annual rainfall (measured in inches) than how many of these cities? 1.Boston 2.Atlanta 3.Nashville 4.NYC 5.New Orleans 6.Houston

17. Pop Quiz: Answer Burnham-Moores Center, MSRE Program, University of San Diego Source: Denis Hayes interview, NOAA

18. Water Cost Burnham-Moores Center, MSRE Program, University of San Diego Seattle: Less than a penny a gallon Off-Peak (Sept 16 – May 15) = $4.50 / CCF Peak (May 16 – Spet 15) = $5.72 / CCF Source: Seattle Public Utilities District

19. How well has the project worked? “This is a market rate project” –Absorption was in line with expectations –80% occupied at opening Core & Shell costs = $18.5 Million – That’s $355/sf –“More of a warm shell” – Plan to “normalize” costs for comparison Burnham-Moores Center, MSRE Program, University of San Diego

20. Energy Reduction Burnham-Moores Center, MSRE Program, University of San Diego

21. Energy Uses Burnham-Moores Center, MSRE Program, University of San Diego

22. Benefits Burnham-Moores Center, MSRE Program, University of San Diego White roof = 15% cooling load savings Solar = “Net Metering” –30% Federal grant toward PV purchase –Federal Tax Credit for up to 30% of installation cost of PV system –100% rebate on Sales & Use Tax for installation

23. Bullitt Center Solar Energy Burnham-Moores Center, MSRE Program, University of San Diego

24. Electricity Prices Burnham-Moores Center, MSRE Program, University of San Diego 2011: 6.72 cents/kWh 2011 Rate Source: Seattle Seattle City Light

25. National Payback Forecasts on PV Burnham-Moores Center, MSRE Program, University of San Diego 20-30 Years

26. Summary “If the building is still the highest-performing one of its kind 10 years from now, the experiment will have failed.” –Denis Hayes Reaching for Living Building Challenge –12 months to prove it Burnham-Moores Center, MSRE Program, University of San Diego