Shiloh Sustainable Village

Sustainable design translates into a competitive revenue strategy for a mixed-use development

Project

Shiloh Sustainable Village is a planned mixed-use multifamily and retail community in northern California. It consists of 72 market-rate and affordable apartments along with 62,671 square feet of neighborhood retail in three zero-energy LEEDâ„¢-certified buildings. It will be one of the first carbon-neutral institutional-quality urban investment opportunities available in the United States. The project is part of the LEEDâ„¢ for Neighborhood Development pilot program and is expected to achieve LEEDâ„¢ Gold certification on completion.

Design

The design combines active and passive heating and cooling strategies with solar power generation and other advanced energy systems. The combination will substantially and permanently reduce operating costs for residents and commercial users, contributing significantly to energy savings at Shiloh Sustainable Village.

The project includes four systems with expected savings as follows:

• The geothermal and radiant heating/cooling systems are expected to reduce energy use by at least 30 percent over conventional HVAC
• The solar photovoltaic panels will produce an estimated 100 percent of the electricity needed by the multifamily households, and provide a substantial allocation of electricity to the commercial tenants
• Water conservation technologies will reduce water usage by roughly 30 percent
• Low-energy appliances in the multifamily component will further reduce energy needs by an estimated 20 percent

Benefits

The innovative energy and water conservation strategies at Shiloh Sustainable Village substantially reduce each tenant’s total cost of occupancy, making the property a more economically competitive offering for residential and commercial tenants than peer projects in the submarket.

Our role

Galley Eco Capital worked with the development team to identify and quantify the financial effects of the project’s sustainability strategies. Specifically, we assisted the development team in the following ways:

• We created comprehensive financial models that calculated the cumulative effect of the project’s green components on the development budget, net cash flow, asset value, and investor returns for this mixed-use development.
• Tapping strategic relationships with debt and equity providers, we helped the project team craft a development and investment strategy. Our assistance helped maximize the project’s debt/equity funding potential in a challenging lending environment.
• We performed due diligence to ensure that Shiloh Sustainable Village was appropriately positioned in the competitive market area, given the quantifiable effects of the project’s green components on market demand and pricing structure.