5 Stone invests only in green, urban, mixed-use, affordable housing, essential retail and light industrial complexes. We invest at a very low land basis. We further reduce operating costs and occupancy expense by making the housing or green commercial space. Our primary markets are east of the Mississippi River that have written sustainability regulations in place; promote energy efficiency benchmarking; have higher utility cost; have improving demographic trends; high population densities with high income density per square mile and high retail sales leakage. (i.e. St. Louis, New York, Boston, Philadelphia, DC, Chicago and Baltimore). 5 Stone serves as both Principal and Asset Manager. We originate 100% of the deal flow. We perform a complete array of green management, from selecting, integrating and optimizing all green technologies to writing property management policies and procedures.
EXISTING BUILDING RETROFIT
Green real estate may cut energy consumption by 30% and water consumption by 50% as well as reduce waste by greater than 75%. Cutting operating expenses and institute green operating policies and procedures may increase net operating income by 4% - 8% over comparable standard construction buildings or buildings that have low green ratings. In dense urban sub-markets, high population density and high income density per square mile solidifies demand for apartments, non-discretionary retail and adaptive re-use of older light industrial buildings. A 100% green fund is expected to create superior total returns and higher net operating income due to lower operating expenses, longer lived materials and systems that reduce future capital expenditures, better design that optimized the advantages of green technology, and better property management operating policies and procedures vs. a non-green or partially green commercial real estate fund.