Case Study:

Developing a Customized Roadmap for Onsite Infrastructure Investments

Challenge

A Development Company (DevCo) sought to design, develop, and install low-carbon generation technologies across a large portfolio of buildings. The DevCo had specific return hurdles and sustainability objectives. The DevCo sought to make informed decisions around how to achieve the largest sustainability impact without violating its financial return thresholds. The DevCo was faced with a number of questions, including:

1

How to systematically down-select from thousands of existing buildings across dozens of geographies, markets, and regulatory regimes to those which have minimum feasibility?

2

Of those that are feasible, what are the individual economics and sustainability impacts based on local weather and different potential technologies?

3

Are there opportunities to improve either sustainability impacts or financial returns by evaluating multiple sites as a single large investment?

4

How sensitive is the overall business plan to different prices, equipment models, and pro-forma assumptions?

Strategy

The DevCo and Castalune worked together to gather the various data points for each building in the portfolio and agreed on key project constraints and filtering criteria used for down-selection. Castalune then generated unique build-out scenarios for each of the down-selected buildings. Each build-out scenario was programmatically evaluated with a financial pro-forma. The initial results were delivered back the DevCo within a week. The teams then worked together over the course of three weeks to iterate and refine the analysis based on different sensitivities for costs, sustainability metrics, and financial returns.

Results

The DevCo was able to:

1

Make time-sensitive decisions by quickly scaling down from thousands of potential buildings to the top few hundred that met detailed financial and sustainability thresholds

2

Design an implementation roadmap for which buildings to pursue first

3

Establish a scalable framework for future opportunities in which large real estate portfolios are seeking to decarbonize

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