LABBC CASE STUDY

PROPERTY OWNER
Barings LLC

PROPERTY TYPE
Office

SQUARE FEET
462,626

Sponsoring Organizations

23.9%

Energy Reduction Since Ownership

65.8%

Water Reduction Since Ownership

2021 Innovation Awards: Water Performance Winner + Energy Performance Finalist

“Barings LLC is committed to making positive changes toward the environment through investment in and management of sustainable properties. To formalize this commitment, Barings LLC has developed guidelines, policies and procedures setting forth expectations and requirements for energy and water conservation, waste recycling, sustainable building operation practices and tenant engagement.”

JEROME SPELTZ 
P.E., Managing Director, Head of Engineering U.S., Barings LLC

CHALLENGE

Barings LLC, owner of the 25-story office building known as 801 Tower in Downtown Los Angeles, is one of the world’s largest diversified real estate investment managers. A signatory to the United Nations’ Principles for Responsible Investment (UNPRI), Barings LLC recognizes that applying environmental, social and corporate governance (ESG) principles to its portfolio better aligns investors with broader objectives of society. A member of the Global Real Estate Sustainability Benchmark (GRESB), Barings LLC values transparency and has been reporting data since 2013. 

Centrally located in downtown, 801 Tower faced the challenge of reducing energy and water use in an already efficient building, particularly as a result of a global pandemic that sent office occupancy rates plummeting and utility costs soaring to optimize indoor air quality. Originally built in 1992, the property has undergone extensive energy and water efficiency upgrades and modernization of building systems since Transwestern Commercial Services assumed management in late 2014, including the installation of a variable-speed drive-to-base building water circulating pump system, the planting of drought tolerant plants in exterior landscape boxes and the integration of time clock controls to the exterior courtyard water feature. These measures, among others, earned the building recognition, including ENERGY STAR awards, LEED Gold certification and L.A. Building Owners and Managers Association awards. 

STRATEGY

Barings LLC operates on an understanding that green building attributes improve occupant productivity, health, wellbeing and—ultimately—attainable bottom-line benefits for businesses. Guided by this philosophy, 801 Tower General Manager Neal Perkey of Transwestern has been adding green lease riders to tenant leases since Barings LLC purchased the property in 2014. In 2020, he looked to energy and water efficiency technologies and building control systems as a solution to the challenges brought on by COVID-19. By modifying and maintaining existing systems, he and the team at 801 Tower sought to improve operational efficiencies and manage utility costs. 

Specifically, the team at 801 Tower undertook ongoing preventative maintenance of the building’s existing thermal energy storage system located below the building’s subterranean parking structure, pivoted to using Genea on-demand tenant-programmed usage of HVAC during low occupancy months and continued ongoing installation of Variable Air Volume (VAV) unit temperature sensors throughout the building.   

Beyond that, the team performed extensive safety and cleanliness measures to manage the impact of COVID-19, including (but not limited to) ongoing preventative maintenance for 24 variable-speed air handling units serving each occupied tenant floor and installation of 325 MERV-13 air filters; installation of hands-free faucets, toilets, urinals, soap dispensers, paper towel dispensers and toe pulls to doors in common area restrooms; installation of NanoSeptic self-cleaning button covers and ceiling exhaust fans in elevators cabs; placement of hand sanitizing stations and signage for COVID-19 awareness, social distancing, hand washing and mask requirements; and socially distanced arrangements of furniture and way finding patterns.  

IMPACT

Though individually each of the measures taken to optimize efficiencies and reduce emissions at 801 Tower might seem minor, taken together these actions produced significant results. The building’s thermal energy storage system, which regenerates at night during off-peak hours, saves water and optimizes energy use by way of a tank holding 750,000 cryogel “ice balls” that charge (freeze) each night and discharge (melt) during the day, providing chilled water for cooling. By moving up plans by two years for the installation of hands-free faucets and auto-flush toilets and urinals, 801 Tower further decreased water usage in 2020. Other restroom upgrades, including hands-free soap and paper towel dispensers, further reduced the building’s carbon footprint in 2020. Cleaning, disinfecting and air filter efforts resulted in improved overall indoor air quality. 

Ultimately, the team at 801 Tower saw a 26.9% reduction in water use in 2020, for a savings of about $26,000. Water use in the building averaged 9,211 gallons per day, down 65.8% from 2015. Measures taken to prevent the spread of COVID-19 also proved beneficial to the building’s overall performance. The integration of on-demand software for HVAC use allowed tenants to program usage on an hour-by-hour basis, resulting in a dramatic decrease in utility usage, and the ongoing installation of temperature sensors to VAV units (then programmed to the EMS system) continue to improve efficiency, control and overall tenant comfort. 

Since taking ownership five years ago, Barings LLC has reduced greenhouse gas emissions at 801 Tower by 23%. Overall, 801 Tower has maintained impressive annual ESG reduction averages, including a 602-metric-ton reduction in its carbon footprint, 2,570 trees saved and 504 cubic yards of landfill space saved. Barings LLC plans to apply for and obtain a Fitwel certification for 801 Tower in 2021, as well as commence the LEED recertification process, with an aim of improving its current LEED rating from Gold to Platinum.