CAPITOL HEIGHTS – The Woods at Addison, a local apartment community in Capitol Heights, will be the recipient of a million-dollar energy efficiency project in the near future.
Energesco Solutions LLC, a provider of energy efficiency and water conservation measures, agreed with real estate company Federal Capital Partners (FCP) to provide The Woods at Addison with an energy efficiency project worth $1.6 million.
“Energesco is thrilled to work with FCP to bring major energy efficiency benefits to the residents of The Woods at Addison,” said Energesco CEO William Bennett. “These extensive improvements take advantage of leaps in technology and resources now available to reduce energy costs and increase resident comfort. We look forward to ongoing projects with FCP under this visionary Maryland program.”
Energesco has an extensive resume of clients around the nation who they have worked for, including multiple clients in the area. Aside from FCP, fast-food restaurant chain Five Guys, MedStar Montgomery Medical Center in Olney, Heinz Loft Apartments in Pittsburgh and Randolph Village senior living facility in Silver Spring, to name a few.
The project aims to bring various improvements to the apartment community, including complete HVAC replacements, bathroom exhaust fan replacements, lighting improvements, hot water pipe insulation, building sealing and more. The improvements would lower heating, air conditioning and electricity costs, comfort and efficiency, according to Energesco.
The potential for savings is significant, based on Energesco’s previous projects. For example, services done for Randolph Village are expected to provide an annual savings of $55,000. The work done at MedStar Montgomery Medical Center also expected to drop by $643,524 and reduce utility expenses by 26 percent.
Part of the project is financed through a grant from the Maryland Department of Housing and Community Development’s (DHCD) Multifamily Energy Efficiency and Housing Affordability Program. The purpose of the program is “to promote energy efficiency and affordability in the State’s multifamily rental housing developments for low- and moderate-income households,” according to the DHCD. The improvements made aim to lower the occupant’s utility bills and the building’s energy use.
DHCD provides loans and grants for these improvements but restricts the funds to affordable multifamily rental housing developments. “Affordable” in this case is defined as “rental housing with existing income or rent restrictions, or housing with units that serve tenants with low to moderate incomes, as determined by the department,” according to the DHCD.
According to DHCD, the department had $15 million for residential multifamily properties and $5 million for commercial multifamily properties in calendar years 2015-2017. The program is funded by utility customers through utility companies serving Maryland and regulated by the Public Service Commission, a state public utility and transportation regulator agency.
Using this program to increase energy efficiency is in line with FCP’s environmental sustainability goals. The company is aiming to reduce their environmental impact by repositioning current assets instead of starting anew by demolishing and rebuilding, and placing this energy efficiency project in The Woods at Addison is a prime example of their current goals.
“This comprehensive energy efficiency project aligns with FCP’s Environmental, Social and Governance (ESG) leadership and goal of reducing utility consumption across our portfolio,” said FCP Sr. Vice President for Strategic Management and Sustainability Summer Haltli. “We appreciate the opportunity to partner with Energesco and DHCD on such a robust project that will improve the community and the lives of our residents.”
In 2018, they implemented 27 energy-efficiency projects across their portfolio. FCP acquired The Woods at Addison, as well as Holly Spring Meadows in Forestville, in 2017 in a joint venture with Urban Atlantic, a real estate development and investment company, for $44 million.