PM Realty Group
1000 Main St, Suite 2400
Houston, Texas 77002
MEDIA CONTACT:
Kristen Burney
PMRG | PM Realty Group
(713) 209-5910
kburney@pmrg.com

FOR IMMEDIATE RELEASE

Jun 23, 2010

HAZARD CENTER OFFICE TOWER ACHIEVES LEED CERTIFICATION

Energy-Efficiency Upgrades and Improved Water Usage Produce Significant Annual Savings while Improving Environmental Sustainability

SAN DIEGO, CA - PM Realty Group (PMRG), a national, full-service commercial real estate firm, today announced that the Hazard Center office tower in Mission Valley has achieved LEED (Leadership in Energy Efficiency and Design) Silver Certification for Existing Buildings: Operations & Maintenance (EB: O&M) from the U.S. Green Building Council. Through the proactive implementation of numerous energy and water saving measures, Hazard Center's office tower has reduced energy consumption by 13.2 percent and water usage by 17 percent resulting in an estimated annual saving in operational expenses of over $144,000.

Hazard Center's Class-A office tower, owned by Principal Real Estate Investors and managed by PM Realty Group, includes 268,645 rentable square feet and encompasses 15 stories of office space and an underground parking structure. Constructed in 1990, the building has received numerous recognitions including the Building Owners and Managers Association (BOMA) International Office Building of the Year award in 2006.

LEED Certification of the existing office tower is an important first step in executing the key elements of the Hazard Center Revitalization Project, a $200 million investment plan that will transform the center to an urban lifestyle mixed-use environment. The plan, recently approved by the San Diego City Council, includes the construction of 473 residences; almost 5,000 square feet of commercial space; a 2/3-acre public park; three public plazas; and revitalizing the existing shopping center. The plan incorporates sustainable planning and design elements, including water and energy efficiency measures, drought-tolerant landscape design, the use of recycled and renewable materials and green roofs. The project will be designed and built to LEED Certification standards.

"We are very proud of achieving LEED Silver Certification for our existing office building," said Lisa M. Gualco, RPA, FMA, General Manager of Hazard Center. "These improvements save energy and water usage, and also increase tenant satisfaction with the comfort of their space."

LEED Certification, established by the U.S. Green Building Council and verified by the Green Building Certification Institute, is the nation's preeminent program for the design, construction and operation of high performance, environmentally responsible green buildings.

Through the adoption of new technologies and energy-saving strategies, the office building has reduced their annual energy consumption by 485,016 kWh and water usage by 228,140 gallons. The building has also reduced its annual carbon emissions by 7.5 percent and increased its Energy Star score by two points. The Energy Star program helps owners evaluate their building's energy performance, reduce energy usage and lessen their overall carbon footprint.

The total cost of the retrofits and LEED EB: O&M Certification was less than $100,000. The simple payback for these improvements will be less than nine months. Some of the retrofits implemented to reduce energy, water, operations and maintenance expenses include:

  • Revised the building's sequence of operations to reduce the peak load during morning start up.
  • Re-calibration of infrared sensors on toilet and urinal flush valves to prevent unnecessary flush cycles.
  • Increased and more efficient use of the ventilation fan by cooling the interior of the building with outdoor air when temperatures are favorable.
  • Provided training sessions for property management staff regarding building optimization, energy-use analysis, HVAC maintenance contracts and energy-efficient landscaping.
  • Performed a garage lighting retrofit by replacing high efficiency T-8 fluorescent lamps with state of the art LED (Light Emitting Diode) lighting.
  • Retro-commissioning of fan powered VAV (Variable Air Volume) boxes during normal hot/cold responses, saving energy and increasing tenant comfort.
  • A water softener was added to the building's cooling tower system to reduce the system's water demand.

Hazard Center was originally envisioned in the mid-1980s as a mixed-use project that would combine retail shops, restaurants, a hotel, a Class-A office tower and a multi-family residential neighborhood. Two decades later, the Hazard Center Revitalization Project enables the property to achieve its ultimate vision and provide a sustainable lifestyle that embraces the best San Diego has to offer.

The project will transform the existing 41.3-acre site into a mixed use- community that embodies "smart-growth" principles and preserving key regional resources. The plan includes an innovative system of pedestrian pathways that will provide connectivity to regional transit, as well as access to the regional river corridor and bicycle trail systems. In addition, the plan provides key traffic improvements to circulation in Mission Valley and provides 10 percent affordable housing on site.

About Principal Real Estate Investors

Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management and manages or subadvises $33.7 billion* in commercial real estate assets. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group.

*AUM as of 3/31/10

About PM Realty Group

Headquartered in Houston, Texas, PM Realty Group (PMRG) is one of the nation’s leading real estate companies focusing on comprehensive property services, development and acquisitions. With a strategic presence in 30 markets, PMRG provides the highest quality services to its clients and investors. PMRG’s clients and investors include large financial institutions, advisors and high net worth individuals. By capitalizing on the team’s experience and expertise, PMRG has the ability to undertake large and challenging management, leasing, development and acquisition projects.

PMRG’s portfolio, including projects managed for third parties, includes commercial office buildings, mixed-use centers, corporate headquarters, industrial buildings, medical facilities, high-rise multifamily buildings and re-appropriated military facilities.

Our goal is to generate exceptional returns for our clients and investors by focusing on real estate fundamentals. For additional information, visit www.pmrg.com.