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Building for Wellness: the Business Case Building for Wellness THE BUSINESS CASE Building Healthy Places Initiative Building Healthy Places Initiative ULI Center for Capital Markets and Real Estate BuildingforWellness2014cover.indd 3 3/18/14 2:13 PM Building for Wellness THE BUSINESS CASE Project Director and Author Anita Kramer Primary Author Terry Lassar Contributing Authors Mark Federman Sara Hammerschmidt This project was made possible in part through the generous financial support of ULI Foundation Governor Bruce Johnson. ULI also wishes to acknowledge the Colorado Health Foundation for its support of the ULI Building Healthy Places Initiative. Building Healthy ULI Center for Capital Markets Places Initiative and Real Estate ACRONYMS HEPA—high-efficiency particulate absorption HOA—homeowners association Recommended bibliographic listing: HUD—U.S. Department of Housing and Urban Development Kramer, Anita, Terry Lassar, Mark Federman, and Sara Hammer- HVAC—heating, ventilation, and air conditioning schmidt. Building for Wellness: The Business Case. Washington, D.C.: LEED—Leadership in Energy and Environmental Design Urban Land Institute, 2014. VOC—volatile organic compound ISBN: 978-0-87420-334-9 MEASUREMENTS © 2014 Urban Land Institute 1025 Thomas Jefferson Street, NW ac—acre Suite 500 West ha—hectare Washington, DC 20007-5201 km—kilometer All rights reserved. Reproduction or use of the whole or any part of mi—mile the contents without written permission of the copyright holder is sq ft—square foot prohibited. sq m—square meter 2 BUILDING FOR WELLNESS: THE BUSINESS CASE About the Urban Land Institute The mission of the Urban Land Institute is to provide • Sustaining a diverse global network of local prac- leadership in the responsible use of land and in tice and advisory efforts that address current and creating and sustaining thriving communities world- future challenges. wide. ULI is committed to Established in 1936, the Institute today has more • Bringing together leaders from across the fields than 30,000 members worldwide, representing the of real estate and land use policy to exchange best entire spectrum of the land use and development practices and serve community needs; disciplines. Professionals represented include • Fostering collaboration within and beyond ULI’s developers, builders, property owners, investors, membership through mentoring, dialogue, and architects, public officials, planners, real estate bro- problem solving; kers, appraisers, attorneys, engineers, financiers, • Exploring issues of urbanization, conservation, academics, students, and librarians. regeneration, land use, capital formation, and ULI relies heavily on the experience of its sustainable development; members. It is through member involvement and • Advancing land use policies and design practices information resources that ULI has been able to set that respect the uniqueness of both the built and standards of excellence in development practice. natural environments; The Institute has long been recognized as one of the • Sharing knowledge through education, applied world’s most respected and widely quoted sources of research, publishing, and electronic media; and objective information on urban planning, growth, and development. About the Building Healthy Places Initiative The ULI Building Healthy Places Initiative is lever- • Defining the approach. Help to define and aging the power of ULI’s global networks to shape share information about the design elements, projects and places in ways that improve the health programming strategies, materials, and other of people and communities. approaches that improve health for people. In January 2013, ULI’s board of directors • Exploring the value proposition. Build under- approved a focus on healthy communities as a standing of the market and nonmarket factors cross-disciplinary theme for the organization. at play in building healthy places, and the Through the Building Healthy Places Initiative, value proposition of building and operating in launched in July 2013, ULI is working to promote health-promoting ways. health in projects and places across the globe. • Adv ancing the state of practice and policy. ULI is focusing on four main areas of impact: Using the ULI membership as a lever, and in • Raising awareness. Raise awareness of the partnership with others, advance the state of connections between health and the built policy and practice. environment in the real estate community, We invite you to learn more at www.uli.org/health. and work to make sure health is a mainstream consideration. About the ULI Center for Capital Markets and Real Estate The ULI Center for Capital Markets and Real Estate tersection of real estate finance and capital markets focuses on tracking, analyzing and exploring real and the diverse needs and interests of the ULI mem- estate investment trends globally. The mission is to bership. The Center also seeks to address members’ inform, educate, explore issues, create knowledge, interests in underlying topics such as market forces and foster communication and networking at the in- affecting property sectors and economic trends. BUILDING FOR WELLNESS: THE BUSINESS CASE 3 AUTHORS Project Director and Author Primary Author Contributing Authors Anita Kramer Terry Lassar Mark Federman Sara Hammerschmidt ULI PROJECT STAFF ULI SENIOR EXECUTIVES Anita Kramer Patrick L. Phillips Vice President Chief Executive Officer ULI Center for Capital Markets and Real Estate Cheryl Cummins Mark Federman Executive Officer Project Assistant, ULI Center for Capital Markets and Real Estate Michael Terseck Sara Hammerschmidt Chief Financial Officer/Chief Administrative Officer Associate, Content Jason Ray Rachel MacCleery Chief Technology Officer Senior Vice President, Content Lela Agnew Dean Schwanke Executive Vice President, Communications Senior Vice President, Case Studies and Publications James A. Mulligan Kathleen B. Carey Senior Editor Executive Vice President/Chief Content Officer David James Rose David Howard Editor Executive Vice President, Development and ULI Foundation Betsy VanBuskirk Creative Director Joe Montgomery Craig Chapman Chief Executive, Europe Senior Director, Publishing Operations John Fitzgerald Chief Executive, Asia Pacific Marilee Utter Executive Vice President, District Councils 4 BUILDING FOR WELLNESS: THE BUSINESS CASE Contents 6 Executive Summary 10 Chapter 1: Renovation and Redevelopment 12 ECO MODERN FLATS 16 INNOVATION PARK 20 1221 BROADWAY 24 JACKSON WALK 28 THE CENTURY BUILDING 32 Chapter 2: New Construction 34 VIA6 38 THE INTERLACE 42 PARK 20|20 46 VIA VERDE 50 Chapter 3: Master-Planned Communities 52 GROW COMMUNITY 56 SELANDRA RISE 60 RANCHO SAHUARITA 64 MUELLER 5 Executive Summary DOES WELLNESS MAKE BUSINESS SENSE AS A DEVELOPMENT OBJECTIVE? How have developers pursued this objective? What has the market response been? And how have developers measured their success? This publication provides answers directly from Each chapter focuses on an overall development developers who have completed projects with well- strategy and showcases a variety of building prod- ness intentions. In 13 sets of interviews, developers ucts and sectors within each strategy: explain their motivation, their intended wellness Chapt er 1: Renovation/redevelopment and health outcomes, the development process and • Apartment buildings (two) operations as related to their health intentions, and • Business/call center the key issue in this publication—the metrics of • Mix ed-use building (apartments, office, and market performance. retail) • Fitness/wellness/primary care facility SUMMARY OF WELLNESS FEATURES, BY PROJECT AND INTENT* FIGURE 1: OVERVIEW OF BUILDING FOR WELLNESS PROFILES General physical/ Structured fitness Structured fitness/ Natural Clean pedestrian activity Support for activity through wellness activity lighting/ Social indoor air through project design bicycling built amenities through programming daylighting interaction Other Chapter Project name Location Use 1. RENOVATION/REDEVELOPMENT Eco Modern Flats1 Fayetteville, AR Apartments Innovation Park Charlotte, NC Business park (back office, call centers) 1221 Broadway1 San Antonio, TX Apartments Jackson Walk Jackson, TN Fitness/wellness/primary care center The Century Building2 Pittsburgh, PA Mixed use: workforce and market-rate housing, office, retail 2. NEW CONSTRUCTION Via6 Seattle, WA Mixed use: apartments and retail The Interlace Singapore Condominiums Park 20|20 Haarlemmermeer, Netherlands Office Via Verde 2, 3 New York, NY Workforce co-ops, low-income apartments 3. MASTER-PLANNED COMMUNITIES Grow Community Bainbridge Island, WA Single-family homes, apartments Selandra Rise Casey, Australia Single-family homes Rancho Sahuarita Tucson, AZ Single-family homes, retail Mueller Austin, TX Single-family and multifamily homes, retail, office * Wellness features noted here are those discussed in chapters 1–3. Some projects may have additional or planned features. 1. Finalist, ULI Global Awards for Excellence, 2013. 2. Winner, ULI’s Jack Kemp Excellence in Affordable and Workforce Housing Awards, 2012. 3. Winner, ULI Global Awards for Excellence, 2013. 6 BUILDING FOR WELLNESS: THE BUSINESS CASE Chapt er 2: New construction While the profiles acknowledge the advantages • Apartment building that particular locations offer, projects were cho- • Mixed use (apartments, retail) sen for the wellness features specifically developed • Condominium development on site. • Office building Studies are underway
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