Seven Springs is a 33-acre campus located in College Park, Maryland. The project is owned by The Ross Companies, a family-owned real estate development and property management firm based in Bethesda, Maryland. The property has been in their portfolio since 2002. Ross specializes in the multifamily and mixed use communities throughout the Washington, DC Metro Area and currently manages just over 11,000 multifamily units.
Seven Springs is a project very dear to the hearts of its owners. At the time of acquisition, it was one of their largest single assets and it was wholly owned by the family, so when it came time to selecting a partner for this energy savings contract, they were very cautious when it came to selecting a partner. They wanted a company that was able to understand not just the value of the savings but the underlying value of the real estate asset and was able to tailor a proposal accordingly. They selected NextGen LED.
NextGen LED is an ROI-driven energy savings company that focuses on pairing the best performing products, with strong warranties, and the most aggressive pricing to customize aggressive op-ex cost reduction initiatives for their clients. NextGen LED partners nationally with public and private companies in the commercial real estate markets to implement portfolio-wide energy savings contracts.
NextGen was co-founded by a former real estate executive that specialized in savings-based energy efficiency projects, and a structured finance entrepreneur who has put together over $500 million in green-tech capital markets transactions.
Seven Springs contains multiple property types in a single location. One high rise apartment building with ground level retail and daycare facility, two mid-rise buildings, 20 garden apartments, and a clubhouse/leasing center with two outdoor tennis courts and a pool. In total there are 982 units and 16,864 light bulbs. Viribright provided all of the interior unit and common area lighting for the facility. A total of over 13,000 lamps.
We were very pleased to provide the Viribright LED bulbs for this exciting project through our partners NextGen. Working with NextGen and their professional team on this and other projects has been very positive.
LED Performance Summary
|PERFORMANCE INDICATOR||Existing Lighting Program||Led Retrofit Program||Savings|
|Total Lamp Count||16,864||14,245|
|Annual kWh SAVED||2,169,301||646,865||70%|
|Annual Electricity REDUCTION||$260,316||$77,624||$182,692|
The project had a 2.37 year payback and an ROI of 39.20%. Total 10 year savings for this contract is $2,171,010. The additional savings comes from a 5-year average on annual lamp and ballast costs that were supplied to NextGen directly from the client.
The total project cost was $778,339. NextGen LED provided in-house financing for 80% of the project costs at 4.2%. NextGen was able to secure Small Business utility-based financing at 0% for the remaining 20% of the project costs, bringing the total cost of capital to 3.36%. NextGen LED (through a total of 29 individual rebate applications comprised of small business and existing buildings) was able to secure $263,749 in rebate dollars for this project. NextGen provided financing for 100% of the project costs and the client took the rebate dollars as cash upfront to implement other property-wide upgrades. Ross Management put no money down, received a check in the amount of $263,749 and was immediately 15% cash positive on lighting related electricity. After the 5-year finance term, the client total savings jumps up to 70% for the remainder of the project life.
Because this was an energy-savings contract, retrofits were recommended over new fixtures. The project deliverable that the client was trying to achieve was financial savings. However, the clearer, crisper light of the LED provided a significant aesthetic enhancement to the property. Hallways were brighter, colors were bolder and the consistency of color across all hallways created an upgraded feel to the facility that was unexpected by ownership and an added, uncalculated benefit in terms of resident satisfaction.