ProLogis Park 33, Building #2
Address: Nazareth, Pennsylvania
Project Specs: Build-to-Suit
Project Type: Warehouse/Distribution
Square Feet: 870,000
Project History: BMW sought a large distribution space for assembling and distributing auto parts to its customers throughout the Northeast and Mid-Atlantic regions of the U.S. BMW received several incentives to locate and operate a distribution center in Lower Nazareth from the Lehigh Valley Economic Development Corporation. They also became the first user/operator in the Lehigh Valley Foreign Trade Zone #272, which enables the company to receive added tax benefits and limits any tariffs that may normally be incurred with international trade. Construction began in April 2008 and was completed in December 2008. The park provides convenient access to the Interstate and Pennsylvania Turnpike and is within an hour’s drive of the seaports of New York and New Jersey.
Commitment to Sustainability
ProLogis is committed to being the leading global provider of sustainable distribution facilities. We are broadening our focus beyond simply “sustainable development” to encompass all three dimensions of sustainability: environmental stewardship, social responsibility and business excellence. These dimensions give our sustainability initiative a “triple bottom line”: benefit to the planet, to people and to the profitability that makes our existence possible. In February 2007, ProLogis became the first real estate company in the world to join the Chicago Climate Exchange, the first voluntary greenhouse gas emissions reduction and carbon credit trading program. As an associate member, the company committed to measuring and offsetting its operational “carbon footprint” through at least 2010.
- Upon completion, we were able to contribute this property to one of the funds in our Investment Management business. Through the fund, ProLogis still maintains a 20 percent interest in the property, but because the fund “purchased” the building, we were able to remove the development cost from our balance sheet.
- The facility will better withstand natural elements that can wear on a more conventional building. For example, by using highly reflective roofing materials, UV rays will not produce as much wear on the roof, giving it longer life and maintaining the energy efficiency of the building for a longer period of time.
- Because this was a build-to-suit, we began collecting monthly rents upon completion. The agreement is a long-term lease. We also collect property management fees for ongoing maintenance.
- Operating this facility will cost less than operating a standard distribution center. As a result of installing energy efficient lighting, HVAC systems and other sustainable features, ProLogis Park 33 #2 is expected to achieve 23 percent greater energy effeciency than industry standards.
Site Sustainability/Materials Use
- An Erosion and Sedimentation Control plan for all construction activities was executed. The plan outlined measures implemented to prevent loss of soil by storm runoff and/or wind erosion; prevent sedimentation of storm sewer or receiving streams; and prevent polluting the air with dust and other particles.
- As part of the land procurement and entitlement process, ProLogis completed an Environmental Impact Assessment. During the assessment process, we identified there are no threatened or impacted species/habitats near the development site.
- More than 80 percent of construction debris was diverted from landfills and recycled for future use. We utilized 20 percent recycled content for the completed structure and more than 50 percent of construction materials were manufactured within 500 miles of the site.
- The building also was designed to accommodate future tenant-related recycling programs by designating space for recycling containers within the facility. Every measure used to make it easier for employees and customers to participate in recycling does that much more to reduce landfill waste and use of virgin resources.
- We used products that emit low (or no) levels of volatile organic compounds (VOCs). Our design team worked diligently to specify compliant products for adhesives, sealants, paints and carpets.
- A landscape plan was developed utilizing native plants. No permanent irrigation system was installed on the site because none of these native plants need watering to maintain vibrancy.
- The exterior walls contain floor-to-ceiling windows that surround the front entrance. In fact, 40 percent of the outer walls of the office portion of the facility are encompassed by windows. Not only do the windows improve aesthetics, but they allow ample natural light into the facility, reducing energy consumption and helping to enhance worker productivity.
- ProLogis Park 33 offers public transportation as it is positioned on Lehigh and North Hampton Transportation Authority’s (LANTA) S bus line with direct access to Interstate 33 as well as multiple other bus lines within LANTA’s transit system.
- In addition, the building includes 12 bicycle racks and changing room facilities. The parking lot provides preferred parking for carpoolers.
- The 110 windows, 140 vision panels in the 70 dock doors and 25-foot glass storefronts allow natural light as a source of interior illumination. The office area receives 75 percent natural light, with 90 percent of the workspaces containing views of the outdoors.
- With all the natural light, lighting needs are minimal. However, when required, an energy-efficient lighting system is used. Our LEED consultant modeled two different lighting structures – a traditional metal halide lighting system and an energy-efficient lighting system with T5 florescent lights, motion sensors and photocells. The cost to install and utilize a traditional system over four years would cost BMW approximately $146,000 more than with the energy-efficient system.
- Cost analysis of actual building use has proven that over the first year of operation, BMW is expected to save an estimated 541,357 kilowatt-hours (kWh) per year (more than $47,000 annually), assuming utility costs are $0.087 per kWh.
- The building has a white, thermoplastic polyolefin (TPO) roof. White TPO roofing offers the same performance while reducing urban heat island effect, minimizing the load on the building’s cooling/heating system and often providing a more comfortable work environment.
- The HVAC system is very sophisticated and includes a user-friendly structure, a high performance external outtake set-up and individual heat pumps. Employees have access to digitized controls to maintain the temperature easily and efficiently. The system is also capable of pumping in outside air and heating it quickly – this helps reduce the need for additional internal pumps.
- There are no CFC-base refrigerants in the HVAC equipment.
- The bathroom fixtures are estimated to save 42 percent above the Energy Policy Act 1992 baseline. All bathroom sinks have automatic infrared sensors. Combined with the low-flow toilets, these fixtures help reduce the amount of water used. Over the course of a year these products are estimated to save 102,800 gallons when compared to average water use.
- No permanent irrigation system was installed because none of the native plants need watering to maintain vibrancy.
- A stormwater management plan was designed to handle excess runoff water, and channel the water to appropriate outlets such as a retention pond. The plan resulted in a 25 percent decrease in the volume of stormwater runoff, which helps protect receiving stream channels from excessive erosion.
- The architect used a building information modeling process to calculate efficiency values of the building. With this software, we were able to plan the best design possible, achieving optimum performance values while maintaining cost effectiveness.
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