iPED Green Homes

1
Welcome
iPED Green Homes and Sustainable Communities
2007 The Annual National Symposium on Green
Affordable Housing Community Development
San Francisco, California July 19 20, 2007
2
What Youll See Today

1. Background
2. Who is United Fund Advisors
3. Funds
4. Green building
5. Energy
6. Case Studies
7. Benefits of Green Building

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Portland, Oregon

• Governor Tom McCall
• Bottle Bill
• Urban Growth Boundary
• Most LEED Buildings, per capita, in US
• Higher-than-LEED green building rating system
  PDX LEED

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Portland, Oregon

• 1 Green City in America (A
  Role Model for the Nation)
  How Green is Your City
• Solar America City US Dept. of
  Energy
• 1 for Biking to work US
  Census
• 3 Best Place to Live
  Sperling Report

5
Green Building in the Media

• Some of the most prominent names in architecture
  have turned green TIME Magazine
• Capitalism and sustainability are deeply and
  increasingly interrelated. Wall Street Journal
• "green" architecture has encouraged architects,
  developers and construction managers to consider
  the effect their buildings have on the health of
  their occupants and the environment. NY Times
• and nowhere is this market (for green building)
  being proven up like in Portland. BetterBricks

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Impact of Buildings

• 2030 Challenge
• Buildings are responsible for 48 of the energy
  use and Greenhouse Gas (GHG) emission in the US
• 76 of all power plant-generated electricity is
  used by buildings
• 50 of US energy comes from coal largest source
  of CO2
• China adding 1 coal-fired plant per week
  Technology Review

Source Architecture 2030 US Energy Information
Administration
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Triple bottom line mission

• To create opportunities for profitable
  investments that enhance social and environmental
  yields.

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Triple Bottom Line
3BL

• Financial
• Social
• Environmental

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What We Do

• With our affiliate Portland Family of Funds, we

• Manage real estate and energy investment
  funds
• Structure and close transactions
• Source debt and equity
• Manage regulatory compliance
• Analyze community impacts
• Provide investor reporting services

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Fund Management

• UFA created, capitalized and manages 501.0
  million in investment funds
• Actively pursuing opportunities to develop and
  manage triple bottom line investment funds

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Fund Portland New Markets Fund

• 100 million New Markets Tax Credits Fund
• Will be fully deployed on 10 projects by Q3
  2007

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Fund Global Green

• Global Green (Santa Monica, CA) recently selected
  UFA to manage 100 to 200
  million Green Building Mezzanine and Equity Fund

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Fund NYCEDC

• The New York City Economic Development
  Corporation (New York, NY) recently selected UFA
  to structure financing for key NYC cultural
  facilities with a successful NMTC application.

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Green Buildings

• Expect to surpass 1 billion in total project
  cost by Q3 07
• Of projects that we have participated in the
  financing stack, 650 million are green buildings
  including (reached and targeting)

Living
Platinum
Silver
Gold
2
5
1
5
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Gerding Theater at the Armory

• 19th century Armory becomes sustainable 21st
  century theater
• 36.1 mm project
• Goals
• Support of the Arts
• Historic Preservation
• Community hub
• LEED Platinum

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White Stag

• University of Oregon expands in Portland
• 30.3 mm project
• Goals
• Support higher education in Oregon
• Sustainable Design Lab
• Synergy between education and sustainable
  businesses
• LEED Gold/Platinum targets

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12W

• Mixed-use project helps fund Head Start
• 137.8 mm project
• Goals
• Job retention/creative services
• Workforce housing
• Carve-out
• LEED Gold target

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Sunset Gordon

• Mixed-use, workforce housing in Hollywood
• 168.3 mm project
• Goals
• Mixed-use
• Workforce housing, office, retail, parking
• Transit-oriented
• LEED Gold target

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The Civic

• Green housing, condo and retail
• 98 mm project
• Goals
• Affordable Housing
• Blight Reduction
• Wealth Building Property
• Low-income housing LEED Gold target
• Condo LEED Silver target

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Vanport Square

• Wealth-building in the heart of MLK
• 8.7 mm project
• Goals
• Wealth building through commercial condos
• Economic development
• Jobs for local small businesses
• LEED Silver target

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Meier Frank/The Nines Hotel

• Repurposing Portlands historic retail center
• 117.0 mm project
• Goals
• Historic preservation
• Jobs and training
• Invigorate key retail anchor
• Premium hotel rooms
• LEED Silver target

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Economic impactsUFA Real Estate, 2004-2006

• 1. Total closed
• 2. Project costs
• 3. Jobs created
• 3. Fiscal impacts
• 4. Total economic impacts 10 years

• 14
• 915.7 million
• 8,000
• 528.8 million
• 3.8 billion

Estimated direct, indirect and induced economic
impacts of Construction and 10 years of
Operations.
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Renewable Energy

• Solar
• Two solar projects aggregating 225kW
• Raising a 100 million Solar Fund
• MOU with SunEnergy Power Corporation to jointly
  develop solar projects
• Wind
• 10MW Wind project under development
• 300MW wind-firming solution

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Bend Centennial Parking Plaza
200kW solar array
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Featured Project Skidmore Building

• Historic (1889)
• Deeply distressed census tract
• HUB Zone, Enterprise Zone, Urban Renewal Area
• NMTC, Historic, BETC
• Transit-oriented
• Part of White Stag Project

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White Stag Project

• Collaborating with the University of Oregon
  School of Allied Arts and Architecture
• Project anticipated to reach LEED Gold

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Skidmore Building

• Targeting LEED Platinum Interiors
• 25 kW solar array on roof

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Skidmore Floor-by-Floor
4. UFA Office
3. Sustainable Business Hub
2. Sustainable Design Lab
1. U of O Library
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Floor 3 Sustainable Business Hub

• Ecosystem for sustainable design thought
  leaders and practitioners, such as
• Cascadia Green Building Council
• BlueSkye
• Nth Power
• Oregon Natural Step

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Floor 2 Sustainable Design Lab

• State of the art presentation, collaboration and
  data-mining hardware and software
• High-bandwidth communications
• Focus on sustainable development strategies,
  technologies and solving financing gaps with
  sustainable design technologies

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Convergence of Ideas
Sustainability
Education
PDX Center
Design
Technology
Finance
Community
Collaboration
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Featured project 12W

• Parking lot to new office, retail and workforce
  housing
• 137.8 mm project
• 29 mm NMTC allocation
• Components
• Office
• Workforce housing
• Retail
• Underground parking

Fund Portland New Markets Fund Controlling
entity PDC
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Community Wins

• Catalytic project in West End
• Creative services job retention
• Carve-out of approximately 1 million net from
  the New Markets Tax Credits
• Albina Early Head Start, pre-K program for
  underprivileged kids in northeast Portland

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Albina Early Head Start

• 415 children ages 3, 4,and 5
• 44 of people below poverty level in the county
  live in the service area of the school
• 90 ethnic minorities
• Governor Kulongoski recently used the school as
  backdrop to urge state legislators to increase
  funding for pre-K programs

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Living Building?

• Exploring ways to make Albina Early Head Start
  the first living school building in the US
• Cascadia Chapter of the USGBC proposed the Living
  Building Challenge
• Net Zero resource footprint
• Portable concept

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Benefits of Green Building

• ENVIRONMENTAL
• Reduce the impacts of pollution and natural
  resource consumption
• Decreased transportation development
• Decreased maintenance burden (roads)
• Increased economic performance of mass transit
  systems.
• HEALTH AND SAFETY
• Enhance occupant comfort and health
• Reduce absenteeism and turnover
• Increased productivity
• COMMUNITY
• Minimize strain on local infrastructures
• Improve quality of life
• Mitigate social costs

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Benefits Commercial

• DEVELOPER/OWNER
• Increase property valuation
• Efficient systems more valuable
• Healthy, i.e. productive indoor environment
  workers, visitors, shoppers
• Marketing (resale) advantages
• Lease up faster
• Decrease vacancy
• Improve retention
• Improve occupant performance
• Higher visitor traffic
• Improved sales

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Benefits Residential

• OWNER/RESIDENT
• Reduce operating costs
• Utilities cost savings energy, water 20 -
  50
• Enhanced rental margins, especially triple net
• Utilities cost savings 20 - 50
• Higher resale value
• Health
• Low VOC Improved indoor air quality
• Daylighting More natural lighting, less cost
• Natural ventilation more comfortable
• Increased density more interaction

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Green Building BRAND

• BRAND IDENTITY
• Cities and developments as Green Magnets
• 500 mayors sign The U.S. Conference of Mayors
  Climate Protection Agreement
• Creative Class
• Knowledge workers
• Families
• Growing industry sector
• 21st Century version of High-tech
• High demand for expertise
• Highly exportable

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Challenges to building green

• Higher costs, which increase depending on LEED
  target (3 - 10)
• Financial structuring challenges
• Non-mainstream technologies
• Green and Historic not compatible in all ways
  (windows, facades)
• Education
• Consumers
• Builders
• Investors
• Lenders
• Legislators

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Opportunities to building green

• Early in the curve
• Increasing demand
• Maximum impact commercial buildings
• Long term cost savings
• Health benefits
• Resource savings
• Do Something Worthwhile

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Thank you
iPED Green Homes and Sustainable Communities
2007
Contact Norris Lozano United Fund Advisors (503)
226-1370 norris_at_portlandfunds.com