Hines Buildings. Phoenix, Arizona

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1 Hines Buildings Phoenix, Arizona Hines Buildings Earn US EPA/DOE Energy Star Label for Buildings Of the four buildings in the Phoenix/Tempe metropolitan area that have earned the U.S. EPA/DOE Energy Star Label for Buildings award, two were developed and are now owned and/or operated by Hines. The buildings are the America West Airlines headquarters building in Tempe, and the 24th At Camelback Office Building in Phoenix. Hines is a privately owned real estate firm, founded in 1957 and headquartered in Houston, Texas. Hines is involved in developing, acquiring, consulting, leasing, and managing real estate, as well as providing extensive global investment management and advisory services. Hines is a firm believer in the benefits of the EPA/DOE program, which benchmarks and recognizes buildings that rank in the top 25 percent of all buildings in the U.S. in terms of energy efficiency. According to Hines market manager for Arizona, Darwyn Harp, Energy management is now, and has always been, an integral component of our property management activities. Not only is it environmentally responsible, but it

2 The Energy Star program is another way that we can demonstrate Hines quality to our clients provides an immediate and long-term financial benefit to our client and tenant base across the organization. Hines considers the ENERGY STAR program an important aid to leasing, and a sound and responsible business decision. In addition to the Energy Star label for the buildings, in March, 2002, Hines received the EPA/DOE Energy Star Partner of the Year Award for Excellence in Energy Management. In presenting the award, EPA Administrator Christine Whitman said, Successful partnerships have always been integral to achieving our environmental protection goals we honor the 2002 Energy Star Partner Award winners who serve as models to other businesses and organizations, proving you can improve our environment while saving energy and money. Hines also has learned it will receive the award in 2003, making it the third consecutive year to receive this honor. The Hines portfolio currently includes more than 670 properties representing 216 million square feet of office mixed-use, industrial, retail and residential properties, as well as large, master-planned communities and land developments. With offices in 74 U.S. cities and 11 foreign countries, and assets in excess of $13 billion, Hines is one of the largest real estate organizations in the world. America West Airlines corporate headquarters in Tempe, Arizona American Standard Inc. All rights reserved

3 Left to right, Rocky Tarcola, Arizona Trane, and Robert Bonilla, Hines engineering manager at America West Airlines check operation of a Trane commercial self-contained air-conditioning unit. America West Airlines Corporate Headquarters Hines developed and manages the nine-story 218,000-square-foot America West Airlines headquarters building in Tempe. The building houses the executive, administrative, and support functions of America West Airlines, plus the offices of the airline s leisure travel subsidiary, The Leisure Company. More than 600 employees work in the building. In addition to earning the EPA/DOE Energy Star Label for Buildings in 2000, 2001, and 2002, the America West project was named the 2000 Building of the Year by the Arizona Chapter of the National Association of Industrial and Office Properties (NAIOP). Designed by Leo A. Daly Architects and the SmithGroup, the America West building features a curved roofline, emulating the streamlined shape of an airplane wing. America West airliners landing and taking off from nearby Sky Harbor International airport are frequently reflected in the building s sparkling blue-green insulated-glass exterior. Located on a seven-acre site that includes a five-level parking structure and landscaped courtyard, the building was carefully designed considering the intense sunshine and desert heat in Arizona. Technologies such as T8 fluorescent bulbs with electronic ballasts help the building achieve excellent energy performance. Efficient commercial, self-contained air-conditioning systems from Trane provide floor-byfloor cooling, maximizing comfort control while minimizing energy usage. The building was designed to meet ASHRAE Standard 90.1, which sets performance standards for energy use, indoor air quality, and outside air ventilation. An important part of controlling the building s energy usage is the Trane Tracer Summit building automation system. Robert Bonilla, Hines Engineering Manager at the America West building, uses the Tracer Summit system to closely control operation of the building s systems to optimize comfort while minimizing electrical usage and demand charges. For summer air conditioning, the building uses eight, 80-ton, commercial, self-contained air conditioners from Trane and a single 65-ton Trane unit. These units supply conditioned air through variable-airvolume terminal units, all of which are controlled by the Tracer Summit automation system. The building also uses Trane water-source heat pumps in the computer rooms. Bonilla states that even with the tremendous 100-plus degree summer heat, the building s peak energy use occurs during winter months when heating is required. The demand limiting program we use allows us to reduce the amount of incoming kw usage during the winter months by matching only the HVAC equipment required to provide tenant comfort. Bonilla said Hines selected Trane commercial self-contained units because they are proven and offer excellent first-cost and efficiency, while requiring less overall space than a central chilled-water system and all the associated water piping. According to Bonilla, the variable-airvolume terminal units, manufactured by Nailor Industries, are equipped with Honeywell actuators that also have Trane controls that interface with the Tracer Summit system. The Tracer Summit system controls and

4 We re continually monitoring and adjusting our building for optimum performance. At the end of the day, we re making sure that our client is getting value for their investment. Trane Tracer Summit building control units. monitors all the equipment and systems. It tracks the run-hours on each piece of equipment, whether it s a self-contained HVAC unit, fan, pump, or cooling tower. It also generates Excel worksheets that provide information and trends in energy consumption, temperatures, Btu per square foot, etc. The system makes it easy to accumulate all the data that played an important role in benchmarking the building and achieving the Energy Star Label for Buildings award. It allows us to finetune the building operation, minimizing the run-time of all the equipment without jeopardizing comfort. Hines believes in the Energy Star program, and we believe that achieving this distinction gives us a competitive advantage over the other buildings, Bonilla said. The Energy Star program is another way that we can demonstrate Hines quality to our clients. It s more than just a good marketing program. It s backed by hard operating data, quality building construction, and excellent operating practices. The America West building opened in 1999, and in 2000 we scored 75 points, the minimum required to qualify for the Energy Star label. In 2001 we scored 79 points and this year we ve scored 80 points. This building keeps getting better. The Energy Star program is a way we can differentiate ourselves from other buildings. We re continually monitoring and adjusting our building for optimum performance. At the end of the day, we re making sure that our client, America West Airlines, is getting value for their investment. Bonilla says that he has a performance standard that he shoots for. We have a comfort-call threshold where we re allowed a certain number of comfort calls each day from our tenants. Our threshold is currently 0.9 calls per day. In other words, if we get one comfort complaint call in a day, that s too much. Right now we re averaging 0.1 to 0.2 comfort calls per day. If we do get a call, it s usually something quite simple that we can adjust using the Tracer Summit system. If we do need to send an engineer to check on a piece of equipment, the Tracer Summit system becomes a diagnostic tool, helping the engineer troubleshoot the particular problem. And if we need to call Trane, they re always very responsive and helpful.

5 Above: The lobby at 24th and Camelback. Right: Left to right, Art Baril, Hines engineering manager at 24th At camelback, and Rocky Tarcola, Arizona Trane. Our utility bills are quite low compared to other buildings. 24th At Camelback Located at what has been described as the premier business address in Phoenix is the 24th At Camelback. The eight-story building has 275,000 square feet of office space plus 25,000 square feet of ground-floor retail space. It is now 93.5 percent leased. Designed by Jon Pickard Architects and the SmithGroup, 24th At Camelback is an L-shaped building with a sweeping roofline, curved outer walls and a granite and glass facade. As the second Energy Star Label for Buildings award winner for Hines in Arizona, it also uses Trane commercial, self-contained air conditioners (two 50-ton units per floor) and a Tracer Summit automation system plus T8 lighting systems and other energy efficient products. Engineering Manager Art Baril expresses the challenges of energy management in a multi-tenant building in stating that, We have many tenants who come in to work as early as six o clock a.m., some who operate as late as eleven o clock p.m., and some who require as much as eight watts of power per square foot, considering all of their computer equipment. Plus we have legal firms who like to burn the midnight oil. We used Trane commercial selfcontained units here because first cost is a driving factor in this market. We also want to maximize the leasable square footage, Baril said. Average energy consumption at 24th At Camelback is a miserly 4500 Btu per square foot, and our peak energy usage is during the winter months when the fan-powered VAV terminal units provide electric resistance heating. To help minimize energy use, the fans are equipped with variable-speed drives. Most other systems throughout the building, such as water pumps, cooling tower fans, and supply and

6 Energy conservation has always been an integral part of our firm. 24th At Camelback Building in Phoenix, Arizona. exhaust fans-are also equipped with variable speed drives to provide soft startups and minimal energy consumption. Winter operation of the commercial selfcontained units, on the compressed refrigerant side, is minimal, due to the use of the waterside economizer feature installed in the HVAC system. From November through April we can use condensing water to meet cooling demand without running a single compressor. Therefore, our utility bills are quite low compared to other buildings. We watch energy consumption very closely and use the Tracer Summit system to keep the air-conditioning system running as efficiently as possible. In pursuing the Energy Star Label designation, 24th At Camelback achieved a score of 80 points in the benchmarking process. The Tracer Summit system gives us all the control we want, which is important with all the various tenants in the building Baril said. And the Energy Star label truly does put a label on all the energysaving techniques and equipment that we use in this building. The Energy Star label is highly recognizable by our tenants and adds value to the building. We would operate the building in the same manner even without the Energy Star label, but the label demonstrates to tenants and the community that we meet federal guidelines for energy efficiency. We can tell folks that all day long, but the Energy Star label literally does put a label on it. We do have tenants who have actually asked if we use green light bulbs, etc. They truly are concerned about energy efficiency. Now that we ve received the Energy Star label, it reinforces the message of our commitment. Energy conservation has always been an integral part of our firm even before the EPA/DOE Energy Star Label program existed. CASE-SLX086-EN May 2003 New Inland

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