An Existing Building Portfolio on a Path to Net-Zero Energy

This case study describes how the John Madden Company (JMC), a family-owned business in Colorado, implemented a large-scale energy efficiency project across two buildings in its portfolio. By utilizing Commercial Property Assessed Clean Energy (C-PACE) financing and bundling various efficiency measures, JMC achieved significant energy savings without upfront capital costs for the landlord or increased costs for tenants.

• The John Madden Company (JMC) completed an energy efficiency project for two buildings in its portfolio that is expected to result in 30 percent energy savings. The project was designed to be cost-neutral for tenants from the start and required no cost from JMC.
• JMC utilized Commercial Property Assessed Clean Energy (C-PACE) financing, which the document identifies as the largest such project in Colorado. C-PACE allows for 100 percent coverage of hard and soft costs with long-term financing up to 20 years, with the loan remaining attached to the property via a tax assessment rather than the owner.
• The specific C-PACE project cost $7.1 million and is projected to generate $385,000 in annual maintenance and energy savings. Although the project has an 18-year simple payback period—which is typically too long for many owners—the C-PACE structure reduces risk because the loan stays with the property if it is sold.
• To achieve favorable economics and stay under the 20-year payback period required for tenant cost-neutrality, JMC bundled high-payback items, like rooftop unit replacements, with shorter-payback measures. These included lighting improvements, water saving improvements, evaporative condensers, new high-efficiency rooftop units, new controls, advanced submetering, and active energy management.
• C-PACE financing helps resolve the 'split incentive' problem in leased buildings, where landlords typically lack the incentive to invest in efficiency because tenants pay the energy bills. Because C-PACE is a tax assessment rather than an operating expense, JMC could pass the full cost of the equipment to tenants without increasing rent.

APA

RMI (2018). An Existing Building Portfolio on a Path to Net-Zero Energy. https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/

Chicago

RMI. An Existing Building Portfolio on a Path to Net-Zero Energy. 2018. https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/.

Wikipedia

{{cite report |author=RMI |title=An Existing Building Portfolio on a Path to Net-Zero Energy |date=16 April 2018 |url=https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018existing, author = {{RMI}}, title = {{An Existing Building Portfolio on a Path to Net-Zero Energy}}, institution = {RMI}, year = {2018}, month = apr, url = {https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }