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An Existing Building Portfolio on a Path to Net-Zero Energy
The John Madden Company (JMC) implemented a $7.1 million energy efficiency project for two buildings in Greenwood Village, Colorado, achieving 30 percent energy savings. By utilizing Commercial PACE (C-PACE) financing, JMC overcame the 'split incentive' problem common in leased buildings, as the loan is repaid as a property tax assessment rather than an operating expense. The project bundled high-efficiency rooftop units with shorter-payback measures like advanced submetering and controls to ensure the investment remained cost-neutral for tenants from day one. The C-PACE mechanism allowed for an 18-year simple payback period, reducing risk for the owner because the loan remains attached to the property regardless of ownership changes.
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Document type: Case study