Why The Investment Community Should Value "Green"

Pacific Security Capital is focused on educating business investors in the true value of “green” property development.

Many investors are discouraged by the upfront costs of building green without taking into account the considerable return-on-investment. Recent studies show that green properties can hold and potentially increase their value much more than traditional buildings.

“The problem is that the investment community lacks a formal framework for analyzing and valuing green property development from a business investment perspective,” said Theddi Wright Chappell, Pacific Security Capital’s Managing Director of Advisory Services. “Many investors use the terms cost and value interchangeably without realizing that they mean different things.”

The value of developing properties that conserve water, generate better air quality and are more energy efficient far surpasses the upfront costs associated with building green.

Investors, landlords, employers and occupants can all enjoy the benefits of a green building, such as:
-    Significantly reduced utility bills
-    Extended property lifecycle
-    Increased employee productivity and less absenteeism due to better air quality that prevents airborne sickness
-    Reduced maintenance costs
-    Less tenant turnover

Pacific Security Capital is currently working with Scott Muldavin, a respected investment consultant who created a commercial mortgage risk rating system for Standard & Poors back in the 1980s. Together, Pacific Security Capital and Muldavin are forming the Green Building Finance Consortium to develop evaluation and underwriting tools and practices necessary for the investment community to measure the true value of building green.

“The Green Building Finance Consortium will pool together the expertise of organizations and individuals serving the business investment community to offer expert advice to investors interested in going green,” said Wright Chappell.

Theddi Wright Chappell will be speaking at the 2006 Swinerton Green Building Summit, March 22 – 24, about why the investment community should value green and the industry’s need for a formal mechanism that enables investors to evaluate green development investments.

“The Investment Community Values Green”
Thursday, March 23, 2006
2 pm – 2:30 p.m.
Asilomar Conference Center, Pacific Grove, California

To learn more about Pacific Security Capital’s commercial real estate advisory services, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.