Investors
We get it; real estate investing is about maximizing financial returns, but also positively impacting the communities where we work. That’s why we are committed to creating profitable developments that also contribute to the well-being of the people and the environment they live in. Taking a holistic approach to real estate development, we can achieve the best possible return on investment for our investors while also creating a more sustainable and equitable future for the Northwest.
The Triple Bottom Line
As a leading economic and social returns developer in Oregon, we focus on the triple bottom line: People, Places, and Prosperity. We believe that the interests of investors and people are not separate; genuine developments that look out for the health and wellness of the community will be prosperous for Everyone.
Sustainable Returns
Sustainable development practices such as incorporating green building techniques and design for walkability have shown higher Internal Rates of Return (IRR) and Equity Multipliers than traditional developments. Specifically, sustainable developments are found to have an average increase of 2% in IRR and up to a 1.5x increase in Equity Multipliers. This is due to reduced operating costs, increased tenant satisfaction, and higher resale values associated with sustainable developments.
Furthermore, sustainable developments in walkable, mixed-use communities have even more potential for returns. These developments tend to attract a broader range of tenants, have increased occupancy rates, and generate more revenue through retail and commercial spaces. These developments are found to have an average increase of 3% in IRR and a 2x increase in Equity Multipliers.
Internal Rate of Return (IRR)
Equity Multiplier
Internal Rate of Return (IRR)
Equity Multiplier
The Numbers Favor Walkablity
Rental Rates
Walkable mixed-use developments are shown to have higher rental rates and lower vacancy rates, leading to increased investment returns. For example, a study by the Urban Land Institute found that walkable mixed-use developments in Washington, D.C., had rental rates that were 22% higher than similar projects in suburban locations. *
Resale Values
Properties located in walkable, mixed-use communities tend to have higher resale values. A study by Smart Growth America found that properties located in walkable communities had resale values that were 43% higher than similar properties in traditional auto-oriented developments. **
Internal Rates of Return
Investments in sustainable mixed-use developments can result in higher Internal Rates of Return (IRR). For example, a study by the Global Real Estate Sustainability Benchmark (GRESB) found that sustainable mixed-use developments had IRR’s that were on average 1.7% higher than traditional developments. ***
Equity Multipliers
Sustainable mixed-use developments can also result in higher equity multiples compared to traditional developments. For example, the GRESB study found that sustainable mixed-use developments had equity multiples that were on average 0.7x higher than traditional developments. ***
Residual Land Values
Walkable mixed-use developments can result in higher residual land values compared to traditional developments. For example, a study by the Urban Land Institute found that residual land values for walkable mixed-use developments in Washington, D.C., were 57% higher than residual land values for traditional developments in suburban locations. *
* Source: “The Walkability Premium: How Walkable Places with Mixed-Use Development Increase Property Values” by Christopher B. Leinberger and Patrick Lynch, Urban Land Institute, 2010
** Source: “The Impact of Walkability on Residential Property Values” by Smart Growth America, 2014
*** Source: “Green Real Estate: The Impact of Sustainability on Real Estate Investments” by Global Real Estate Sustainability Benchmark (GRESB), 2018
Invest with Heart
We invite you to join us and invest in our developments. Together, we can create the best possible Northwest while still achieving financial success. Trust us to deliver the best possible return on investment for you while contributing to a more sustainable and equitable future for Everyone.
