Multifamily real estate is at a turning point. After a decade-long bull run of increasing rent growth and compressing cap rates, things have started to slow down. The demand for multifamily housing remains high due to the ongoing housing shortage, but the slowing economy is making renters more price-sensitive. In fact, almost half of U.S. markets saw multifamily rental prices drop over the last year. At the same time, inflation has made it much harder for multifamily owners. The cost of running a building continues to increase, and interest rates are higher than they have been in nearly half a century. Even if inflation cools and rates decrease, the sector will remain competitive. More investors are pouring into the space, many from other property sectors, and more new apartments are coming on the market in 2024 than in any year since Richard Nixon was president.
These factors have forced the multifamily industry to innovate, and it has innovated. Developers are finding new ways to fit more units into less space, engineers are working to make buildings as efficient as possible, and owners are introducing new services and adding impressive amenities.
To showcase the innovation happening in multifamily right now, we have put together a showcase of innovative multifamily properties. Each property has been selected from a long list of great candidates for its uniqueness and ability to solve some of the problems currently facing the industry.
Solara in Rotterdam, New York
Solara is the largest apartment community in the U.S. to achieve net zero distinction (Credit: Solara)
Most multifamily properties strive to be more sustainable, but few achieve “net zero” status. Solara, an 11-building, 340,000-square-foot property in Rotterdam, New York, has managed to do so. The developer, Bruns Realty Group, previously completed New York’s first-ever net zero multifamily development, netZero Village, and applied their learnings to this three-phase project.
Solara features an efficient design that leverages renewable energy sources in multiple ways. The entire carport is covered with solar panels, producing 153,000 kilowatts per year, enough to power the entire property. Each building has its own solar-powered direct hot water system, supplemented by air-to-water heat pumps. The property also includes a solar-heated pool and 36 EV charging stations.
While Solara’s on-site energy generation is impressive, its methods for reducing consumption are even more noteworthy. The development, a two-time winner of NYSERDA’s Buildings of Excellence award, is incredibly well-insulated with a thick layer of foam on the roof and walls, as well as a vented “mini-attic.” The design team used the Passive House Planning Package to model energy consumption and incorporated several passive solar strategies, such as orienting buildings to maximize daylight in the winter and adding exterior shading to block the sun during peak heat hours in the summer. To dispel the myth that net zero buildings require expensive, state-of-the-art materials, Bruns Realty intentionally used cost-effective, commonly available materials and traditional construction techniques.
Vero offers urban living in Tempe with compact units and a focus on walkability. (Credit: Vero)
Walkability and a car-free lifestyle used to be achievable only in dense urban areas, but buildings like Vero in Tempe, Arizona, are challenging that notion. Built within Arizona State University’s Novus Innovation Corridor, the 200-unit, seven-story development offers an urban lifestyle in an area known for its sprawling suburbs. The large student population in the area meant that rents needed to be kept as low as possible. Vero achieved this by shrinking rooms to as small as 360 square feet. Many units are rented furnished and include space-saving furniture like Murphy beds.
Proximity to nearby transit stations and the mixed-use nature of the surrounding innovation park allowed developers to reduce parking significantly compared to typical Sunbelt markets. Parking is not included in the rent, so many residents prefer to forgo a spot. This has helped Vero achieve a parking ratio of 0.7 spaces per unit, compared to the area average of around 1.15. This innovative approach not only reduces costs but also encourages a more sustainable lifestyle among residents.
Despite the focus on affordability, Vero offers several high-end amenities, including a fitness center, co-working space, and a dog wash station. Forty of the units are studios that still provide space for full-sized appliances, storage, and bathtubs. The property also includes communal spaces that foster a sense of community among residents, such as shared lounges and outdoor seating areas. Vero’s connection to surrounding offices and school facilities makes it attractive to both students and young professionals. The building’s design echoes this youthful yet sophisticated vibe with bold yet elegant accents and fixtures, creating a stylish and inviting living environment.
Optima Verdana in Wilmette, Illinois
Optima Verdana’s biophilic design features self-watering plant curtains that enhance air quality and insulation. (Credit: Bill Timmerman)
“Biophilic” is a word frequently used in the architecture and design worlds, often implying little more than an abundance of indoor plants. However, the Optima Verdana building stands out for its truly biophilic design, using plants not only to enhance the local ecosystem but also to provide the building with added functionality. This 100-unit building features self-watering troughs on each balcony, growing cascading plants that hang like curtains once fully grown. According to David Hovey Jr., president and COO at Optima Inc., these plant curtains “promote evaporative cooling, re-oxygenate the air, reduce dust, smog levels, and ambient noise, detain stormwater, help insulate the building, and shield residents from the sun’s rays.” Hovey and his team tested different bed designs and evaluated various types of plants to ensure a suitable option that looks good year-round.
Optima Verdana was designed to be Two Green Globes Certified, a designation given by the Green Building Initiative. This certification considers sustainability, occupant health, and building resiliency. Low-carbon concrete was used in the construction, and all windows are made with bird-friendly glass on the first three stories. To foster community, the property offers numerous amenities, including a recreation center with a wood court for basketball or pickleball, a golf simulator, and a game room. The rooftop features perhaps Optima Verdana’s most impressive amenity: an indoor/outdoor pool encased in retractable glass for year-round use.
Optima Verdana demonstrates that sustainable design does not have to impede resident comfort; it can, in fact, enhance it. Extras like complimentary coffee and towel service are ecological ways the building provides a better experience for residents.
Integrated architecture and real estate development firm Optima, Inc. has announced its construction team has topped off Optima Verdana, a new luxury six-story, 100-unit rental apartment building at 1210 Central in Wilmette. Located across Green Bay Road from the Wilmette Metra commuter train station, Optima Verdana is ideally positioned for North Shore commuters, featuring 176 parking spaces, as well as electric vehicle charging stations.
With the concrete structure complete, Optima has installed the glass exterior panels on the first, second and third floors, with façade work continuing to move up the building. Aligning with Optima’s commitment to sustainability and the natural environment, the glass on the first three floors is bird-friendly, featuring a subtle pattern to help birds avoid the glass.
Optima Verdana will feature one-, two- and three-bedroom apartments with an average size of 1,499 square feet to give residents more flex space for ever-changing lifestyles. The boutique building will also feature 8,000 square feet of street-level retail space, as well as a publicly accessible plaza with an original 8-foot sculpture by Optima CEO and co-founder David Hovey Sr., FAIA.
“Every detail at Optima Verdana has been carefully curated – from using green concrete in the construction process to the signature vertical landscaping system,” said Hovey. “We are excited to move into the next phase of interior construction and begin pre-leasing this spring, as we’ve experienced unprecedented interest from residents on the North Shore and across the country.”
Inspired by the word “verdure” – meaning lush, green vegetation – Optima Verdana marks the Chicago-area debut of the latest evolution of Optima’s signature vertical landscaping system, which was developed in Arizona but modified to accommodate the Midwest’s four seasons. In what will be a first for the developer in the Chicago area, Optima Verdana plants will stay green year-round and be maintained by Optima’s property management team. The self-containing irrigation and drainage system promotes evaporative cooling, re-oxygenates the air, reduces dust and smog levels, decreases ambient noise and detains stormwater.
At Optima, we’re always striving to elevate the living experience. Recognizing the growing popularity of pickleball, we’ve incorporated an indoor court at Optima Verdana, ensuring residents can enjoy this exciting sport year-round.
A massive residential development in Wilmette is nearly move-in ready.
Construction is in the final phases at Optima Verdana, a six-story, 100-unit apartment building at 1210 Central Ave. — corner of Central Avenue and Green Bay Road — and residents will begin moving in in July, according to Ali Burnham, Optima Inc.’s marketing director.
Optima Verdana is Wilmette’s tallest residential building west of Sheridan Road, and of its 100 units, 35 are two-bedroom, 35 are three-bedroom and 30 are one-bedroom apartments.
They range from 660 (1-bed) to 2,256 square feet (3-bedroom) at $2,956 to more than $12,000 (2 penthouse units, already rented) per month. Multiple variations of apartments are available within each bedroom level. Burnham said that a third of the units are already leased, leaving 77 available to prospective renters beginning on May 17.
As a condition of the project’s approval, Optima Inc. agreed to pay the Village of Wilmette $1.6 million to support affordable-housing initiatives villagewide — a payment that was executed in the fall of 2021. The funds, according to previous Record reporting, were granted to Community Partners for Affordable Housing, which believes it can turn the support into at least 15 affordable units.
Other stipulations for approval, which occurred in October 2020, included Optima’s funding of certain streetscape improvements, and its inclusion of a public plaza and public parking on site of Optima Verdana. Burnham said 29 public spaces are available near the entrance of the development’s parking garage, which also features two levels of underground tenant parking.
The building features a signature glass exterior — which uses bird-friendly, patterned glass — that will be complemented with vertical greenery as evergreen plants such as boxwoods, junipers, winter creepers and more grow into place.
Inside, Optima Verdana’s first floor includes a host of resident amenities, such as a pickleball/basketball court, golf simulator, yoga studio, fitness center, business center, dog park, and interior and exterior lounges. A skydeck — top-floor pool, spa, bocce court, herb garden and more — will be open by August, Burnham said.
A rendering of Optima Verdana as submitted by developers in 2020. | Image from Village of Wilmette
Most in-unit amenities, from stoves to outdoor grills, at Optima Verdana run on electricity. The outdoor firepit available in many units is the only gas appliance, she said.
Burnham said first-floor units will be ready for residents in July, and move-in access on subsequent floors will be available in three-week increments.
“We are very excited to open Optima Verdana this week,” said David Hovey Jr., Optima Inc.’s president, in a statement. “… We appreciate the positive feedback we already are receiving from members of the community about Optima Verdana’s design. We thank the Village trustees and staff for their vision and collaboration to bring this project to fruition.”
Optima Inc. boasts three residential complexes in Chicago and another five in Arizona, and also developed projects in Highland Park, Evanston and Skokie.
The Wilmette development also has 8,000 square feet of first-floor commercial space, which Burnham said will be occupied by one or two businesses. She said Optima is seeking a “destination restaurant” or small-item market, a strategy that aligns with the Village of Wilmette’s for the Village Center district.
We’re excited to announce that Optima Verdana has received a 2024 Multi-Housing News Excellence Award (Development & Design) in the Mid-Rise category. The Multi-Housing News Excellence Awards recognizes the multifamily industry’s most noteworthy people, companies, properties and more. Learn more on Multi-Housing News.
WILMETTE, ILL. — Optima Inc. has begun leasing Optima Verdana, a 100-unit luxury apartment complex in the Chicago suburb of Wilmette. The community is scheduled to welcome its first residents in July and is currently more than 30 percent leased. Optima Verdana offers one-, two- and three-bedroom units as well as penthouse residences ranging in size from 660 to 2,790 square feet. Monthly rents will range from $2,950 to nearly $12,000. Optima’s CEO and founder, David Hovey Sr., designed the community.
Residents will have access to Optima’s complimentary concierge program, Optimized Service, which provides in-home package delivery, grocery delivery and plant watering. Residents can also schedule on-demand services through the Optima Verdana mobile app such as housekeeping, pet care, fitness classes, massage service and a private chef.
Optima Verdana gets its name from “verdure,” which means lush green vegetation. The community features several sustainable initiatives, including the Chicago area debut of Optima’s proprietary exterior vertical landscaping system. The self-contained irrigation and drainage system uses plants to promote evaporative cooling, reoxygenate the air, reduce dust and smog levels, decrease ambient noise and detain stormwater.
Indoor amenities at the property include a 24-hour front door person, pickleball/basketball court, fitness center, yoga room, massage room, golf simulator and sports lounge, kids’ playroom, pet park, library lounge and multiple work-from-home spaces. A seventh-floor sky deck features a glass-enclosed lap pool and spa designed for year-round use with retractable glass walls that open onto the sundeck. Residents also have access to a sauna, two herb gardens, bocce court, firepits, party room and game room.
On a sunny winter day, residents of Optima Kierland are pursuing their morning rituals—walking the dog, working out in the fitness room, running on a track around the rooftop pool, powering up a Zoom call in the lounge, heading to the underground garage for the commute to work. But the 1,000-unit condo and rental complex, spread across five towers, is not your typical brown-box-and-a-balcony multifamily project so prevalent around the Valley. Instead, it is a sustainable, architectural tour-de-force, balancing concrete and glass, shade and sunlight, voids and cubic forms, all cooled with lush plantings that defy boundaries between outside and in.
The project is one of the latest achievements by father-and-son architects David Hovey Sr. and David Hovey Jr., who, along with other family members, run Optima, headquartered in Scottsdale and Chicago. Known for their edgy, architecturally striking designs of multifamily complexes and innovative construction techniques and materials, the Hoveys—and their company—have found the secret sauce to success. Optima is a soup-to-nuts company that develops, designs, builds and manages projects, overseeing everything from site selection to specifying kitchen sink faucets.
“I’ve been a fan of the Hoveys’ architecture for a long time,” says architect Anthony Floyd, who heads Scottsdale’s green building program and has worked with the Hoveys on sustainability strategies for several of their projects. “They’ve changed how we view multifamily housing here. What they create is unlike what we’ve seen in Arizona—or even the world.”
The history of this modernist dynasty began with Hovey Sr. Born in New Zealand to a Kiwi mother and a U.S. Marine father, he moved with his family to Chicago when he was 15 years old. “Chicago is the foremost city in the world for modern architecture,” Hovey Sr. says. “Being there sparked my interest in architecture.”
Hovey Sr. enrolled in the Illinois Institute of Technology, where Mies van der Rohe had served as dean and shaped the school’s modernist bent. “Mies was no longer at IIT when I studied there,” he remembers, “but some of us went to his house one night and didn’t leave until 4 a.m. He lived in an old brick apartment—not one of his designs—because he didn’t want to be constantly accosted by clients.”
During college, Hovey Sr. worked as an assistant to the curator of contemporary art at the Art Institute of Chicago, igniting his love of modern art and inspiring his later work in metal sculpture. His first job out of school was with a small firm, but, wanting to experience a larger office, Hovey Sr. signed on with noted Chicago architect Helmut Jahn, working there for four years during the 1970s.
“My son and I are contemporary architects. We are interested in the design, materials and technologies of the 21st century. We’re not interested in allusions to the past.”
David Hovey Sr., FAIA, architect
But there was always an itch to do his own thing. “My IIT professor, Arthur Takeuchi, always said that an architect was the low man on the totem pole when it came to projects,” Hovey Sr. recalls. “He said the best outcome was to be not only the designer but also the developer and client.”
Heeding those words, Hovey Sr. launched Optima in suburban Chicago in 1978, along with his wife, Eileen Sheehan Hovey, who handled the real estate component of their projects. Before long, they were specializing in design-driven multifamily complexes around the city and, later, joined by their children, Tara Hovey, who handles financial strategies for the company, and David Jr., who earned his master’s in architecture at his father’s alma mater and now serves as CEO.
Frequent winter visitors to Scottsdale, the family opened a second Optima office in the desert in the early 2000s, sensing a market that was open to innovative modernist housing. By then, Hovey Jr. was helping push forward Optima’s shape-shifting experimentations with design, materials and construction methods. “When I was working as a construction superintendent on our job sites,” says Hovey Jr., “I observed inefficiencies between architecture and construction that could be improved by prefabrication.”
Though they became known for apartments and condos, the father and son have long experimented with techniques and approaches by building single-family spec homes, completing several over the years in North Scottsdale. “We had to find a new language for architecture here in Arizona,” Hovey Sr. says. “Studying Frank Lloyd Wright’s shelters, we learned to design optimum structures in the desert, ones that celebrated the indoor-outdoor relationship and incorporated sustainable features, such as solar power and passive cooling. We took what we learned from these spec homes and translated that into our multifamily work.”
After completing their first Arizona project, the Biltmore Optima, the Hoveys wanted to include landscaped roofs and terraces for the next site, Optima Camelview. Hovey Jr. worked with ASU to study desert plants in terrace- and rooflike beds at a site in Glendale. “We looked at about 150 kinds of plants and trees,” Hovey Jr. notes. “We learned which survived in extreme sun or shaded spots and which didn’t.”
Optima Camelview, a condominium project, won accolades and awards for its—literal—green design of lushly landscaped terraces, as well as other sustainable strategies, such as shaded glass walls, underground parking and public open space. Optima Sonoran Village, rental apartments in downtown Scottsdale, followed, expanding on the design theme, as did the recently completed Optima Kierland. Under construction now is Optima McDowell Mountain, which will be a six-tower development of rental apartments and condos, mixing in street-level retail and even more amenities and green elements, such as rainwater harvesting, than the previous projects.
As the Hoveys moved forward with projects, they developed relationships with core groups of craftspeople, such as Jerry Barnier, founder of Suntec Concrete. “We started working together about 15 years ago,” says Barnier, “and we found that the Hoveys are very receptive to pushing the design forward efficiently. They understand what works and what doesn’t when it comes to construction. They push everyone to do their best work.”
Despite recent pushback about high-density development in some parts of the Valley, the Hoveys are secure in their place in the desert’s urban landscape. “Having density and height on a site allows us to create open space that’s accessible to the public—and not just our building residents,” Hovey Sr. points out. “It also gives us room to have setbacks that are landscaped. Our McDowell Mountain project is planned around a central park open to everyone.”
Always looking for future possibilities, the father and son prefer to concentrate on one or two projects at a time. “Each development we do is a progression, a journey of how we envision people living in the 21st century.”
Optima Sonoran Village in downtown Scottsdale has five residential towers set around landscaped courtyards with views of Camelback Mountain. Each apartment has plant-fringed balconies that add to the greenscape.
A stint working at The Art Institute of Chicago sparked David Hovey Sr.’s love of contemporary art and his own work as a sculptor, including “Kiwi,” which graces an Optima project in Chicago.
Optima Kierland Center, the Hoveys’ most recent project, is a series of condo and apartment dwellings offering luxe amenities, including cooling landscaping, rooftop pools and running tracks, a golf simulator and a dog “spa” for washing pooches.
In the heart of the Camelback Corridor, Biltmore Towers was the Hoveys’ first foray into the Arizona multifamily market and featured unique design elements, such as recessed balconies, red trellises and orange sunscreens.
Optima Verdana in suburban Chicago includes retail offerings at street level and apartments above.
The Camelview Village condo development put Optima on the local design radar, with innovations such as landscaped balconies and open space, as well as an edgy, modernist design. According to architect and Scottsdale’s green building head, Anthony Floyd, both David Hovey Sr. and David Hovey Jr. lived in units on site. “That’s what I call proof of concept,” says Floyd. “They could see what worked—and what didn’t.”
In downtown Chicago, Optima Signature and Chicago Center includes 42- and 57-story towers, with forms, details and colors inspired by Russian painter Kazimir Malevich and American artist Donald Judd.
Also in Chicago, the Lakeview project features indoor open space as a response to the climate.
“Curves and Voids,” a sculpture by David Hovey Sr., graces the gardens at Sonoran Village.
“Our single-family homes are experimental. They are our ‘Case Study’ projects from which we take ideas and apply them to our multifamily work.”
YIMBY recently had the opportunity to tour Optima Verdana, a new six-story mixed-use building located at 1210 Central Avenue in Wilmette, IL. A project by Optima, Inc., the development comprises 100 rental apartment units and more than 8,000 square feet of commercial space.
Optima Verdana. Photo by Jack Crawford
Optima Verdana. Photo by Jack Crawford
Optima Verdana. Photo by Jack Crawford
The residential offerings at Optima Verdana come with a variety of floor plans and sizes. The one-bedroom units, with sizes ranging from 660 to 898 square feet, start at approximately $3,000. The two-bedroom units, ranging from 1,192 to 1,550 square feet, have prices starting around $4,900. Lastly, the three-bedroom units, spanning from 2,048 to 2,790 square feet, start from around $8,000.
Every year since 1970, on April 22, the world is celebrating Earth Day. The global movement has grown into a meaningful platform for environmental awareness, uniting people in their shared commitment to sustainability. This year’s theme is “Our Power, Our Planet” and it serves as a reminder that the choices we make today will shape the future of generations to come.
Image generated with AI. Image by K silver/stock.adobe.com
From addressing climate change and biodiversity loss to promoting renewable energy and sustainable practices, Earth Day is a rallying cry for individuals, communities, businesses and governments to take meaningful steps toward preserving our planet.
Multi-Housing News asked professionals from the multifamily industry to share details about the energy-saving techniques they use or plan to implement to positively change the lives of their residents, while also improving the health of our planet overall.
Starting point: assessing building performance
The first step in improving the energy efficiency of a multifamily building is understanding how its envelope and systems are performing. With energy efficiency codes only becoming stricter across the country every year, developers and property owners are urged to invest in high-efficiency HVAC systems, electrification, better insulation, LED lighting, smart energy management systems and other energy-saving technologies that make properties more efficient and sustainable in the long term.
“Many communities start by conducting energy audits or assessments to identify inefficiencies in HVAC, lighting, insulation and building controls,” said Breana Wheeler, director of operations at BREEAM U.S., particularly because these systems have a direct impact on both energy consumption and residents’ experience.
Benchmarking is another way to understand how properties are performing, according to Thomas Stanchak, managing director of sustainability at Stoneweg US, a real estate investment firm with a focus on sustainable multifamily assets. It’s the foundation that helps make a data-driven investment plan. Without it, even well-intentioned upgrades can miss the mark.
“You risk putting dollars in the wrong places and falling short on energy savings and financial return. The math matters,” Stanchak said.
Bright Power EnergyScoreCard monitors energy usage
When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power
Adding a solar photovoltaic system and solar battery storage solution can provide significant energy efficiency savings.
Bright Power team member updating ventilation equipment on a roof in NYC.
Bright Power EnergyScoreCard monitors energy usage
When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power
When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power
Sealing the building
Before investing in actual energy upgrades, it’s crucial to address the building envelope—insulation, windows, roof—to identify areas for improvements, according to Theresa Backhus from the Institute for Market Transformation. If the building envelope is leaking, even the most advanced heat pumps and control systems will struggle to maintain comfortable temperatures, leading to higher energy use and increased strain on electrical infrastructure.
Duct sealing in older buildings represents one of the most cost-effective energy-efficiency measures, Thomas Holmes, northeast commercial business manager at Aeroseal, told MHN. “By first sealing ductwork and reducing air leakage in walls, ceilings and floors, building operators are seeing above 30 percent reductions in HVAC energy use, often before replacing a single piece of equipment,” he noted. This also means that smaller, more affordable HVAC systems can be installed during upgrades, leading to additional long-term savings.
While at it, property owners can also invest in ventilation upgrades, such as energy recovery ventilators and demand-controlled ventilation, which ensure that buildings maintain healthy indoor air quality without excessive energy waste.
Energy-saving techniques that work
Once the building’s envelope has been attended to, various energy-saving inclusions can be implemented. The most common one is LED retrofits, which is a low-cost, high-impact energy-saving upgrade. Lighting accounted for 26 percent of an apartment’s energy consumption as of April 2020, according to the U.S. Department of Energy, with LED lighting driving down operating costs while also improving the building’s aesthetics.
Meanwhile, space heating accounts for 56 percent of electricity consumption in multifamily buildings, data from the Joint Center for Housing Studies shows. Though somewhat more expensive, HVAC upgrades make a big difference.
“While residents typically cover these costs, improving HVAC efficiency benefits both parties—lowering expenses for residents, reducing maintenance costs for operators—enhancing the resident experience by preventing system failures and reducing the building’s environmental footprint,” said Sean Miller, chief revenue officer with service provider Lessen.
HVAC system tune-ups can be difficult in multifamily buildings with unitized systems, but it’s important to coordinate with residents to check them. “Lowest-hanging fruit includes ensuring air filters are replaced, coolant is not leaking, seasonal tune-ups are performed,” according to Backhus.
Another energy-saving technique comes from ENERGY STAR. “We use ENERGY STAR Portfolio Manager for every location in our portfolio, it’s an incredible tool,” said Stanchak. “That alone removes most barriers for companies that are just getting started. You just need to invest a little time and be open to learning something new.” ENERGY STAR Portfolio Manager is free of charge and has been available from the Environmental Protection Agency for 30 years. In addition, it comes with no cost for training and support.
Meanwhile, occupancy sensors are also gaining popularity, as they help reduce energy usage when a unit or space is empty. Additionally, smart thermostats that can be tailored around when the space is occupied can provide residents with savings of 10 percent or greater, said Miller.
The vertical closed-loop geoexchange system at The Riverie will reduce annual carbon emissions from heating and cooling by 53 percent compared with typical residential systems.
Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease
Clippership Wharf was completed in March 2021 and sets a new standard for resilient and sustainable waterfront development.
Lendlease recently topped out Habitat, a 260-unit mixed-use project in Los Angeles that is expected to be net zero carbon in construction and operations. It will include an integrated 125kW solar array, 64 dedicated electric vehicle parking spots, natural ventilation and lower-carbon concrete.
Slated for completion in 2026, Habitat will include 260 apartments, a 253,000-square-foot office building, and 2,900 square feet of retail and restaurant space. Lendlease is aiming to make the commercial building the first new-construction creative office development in Los Angeles to achieve LEED Platinum.
Developed by Lendlease, The Riverie is an 834-unit multifamily development in Brooklyn, along the waterfront in Greenpoint. A third of the project’s apartments are designated as affordable housing under the Affordable New York Housing Program.
The vertical closed-loop geoexchange system at The Riverie will reduce annual carbon emissions from heating and cooling by 53 percent compared with typical residential systems.
Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease
Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease
Meanwhile, fine-tuning building equipment operation through retro-commissioning is another highly effective strategy for reducing energy waste and improving overall system performance, according to Monica Beall, director of sustainability with Lendlease. Other emerging solutions include automation, predictive maintenance technologies, advanced air sealing and insulation products, and integrated energy management systems. Onsite generation like solar and battery storage is also gaining ground.
Some companies even offer residents the opportunity to participate in community solar programs, while also sourcing renewable electricity for its properties. “Every property in our portfolio is enrolled in green tariff programs to further support clean energy adoption,” disclosed Beall.
Community solar can be accessed both as a community solar host and as a community solar subscriber. While it provides multifamily properties with a way to access the financial benefits of clean energy even without suitable roof space, “onsite solutions often offer even greater economic advantages, where feasible,” shared Gabe Phillips, CEO & founder of Catalyst Power.
While interest in community solar is on the rise, adoption is lagging due to high upfront costs and property-specific constraints. But as panel technology advances—becoming more compact, resilient and cost-effective—community solar will likely become a more viable long-term investment, particularly in Sun Belt states, believes Miller. Benefits include lower energy costs, increased property value and improved ESG performance, but this method remains “very much incentive-driven to be realistically included in a project,” according to Brad Lutz, director of multifamily design for Baker Barrios Architects.
Saving water saves energy
To save energy, managing water usage is also critical—smart hot water controls regulate consumption while ensuring residents always have hot water when needed, explained Sarah Merricks, co-founder & chief strategy officer at Global Network for Zero. Detecting leaks early can help save both water and money, while low-flow fixtures, drought-tolerant plants and weather-monitoring irrigation systems contribute to water conservation efforts both in individual units and within the broader property.
Optima Verdana features a private courtyard in the heart of the building, which serves as a lush oasis for residents and features 7’ high garden walls, verdant trees, restful seating and more than 1,500 light-filled square feet. Image by Bill Timmerman via Optima Inc.
Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.
The community is being built to the latest energy-efficient and sustainable building standards by integrating solar panels, high-efficiency mechanical systems, underground parking to mitigate the heat-island effect and Optima’s signature Vertical Landscaping System, which provides solar shading, evaporative cooling and improved stormwater management. Image courtesy of Optima Inc.
The community will be the first project in Arizona to be built under both the new International Green Construction Code and the new International Energy Conservation Code, which provides for an additional 9 percent energy savings over the previous code. Image courtesy of Optima Inc.
Optima Verdana is a 100-unit community in Wilmette, Ill.. For its construction, the developers utilized green concrete, all-electric VRF heating and cooling systems, induction cooktops and outdoor electric grills to improve efficiency and reduce emissions. Image by Bill Timmerman via Optima Inc.
Residents responded positively to these enhancements, particularly the shift to induction cooking, which offers higher performance and greater temperature control than gas counterparts. Image by Bill Timmerman via Optima Inc.
Optima Verdana features a private courtyard in the heart of the building, which serves as a lush oasis for residents and features 7’ high garden walls, verdant trees, restful seating and more than 1,500 light-filled square feet. Image by Bill Timmerman via Optima Inc.
Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.
Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.
For Stoneweg, attention to water conservation and hot water energy efficiency is paying off, Stanchak told MHN. Hot water heating accounts for nearly 20 percent of total energy use across the company’s portfolio. Last year, Stoneweg completed several water conservation projects at Texas properties with central natural gas-powered boilers and saw a roughly 9 percent drop in natural gas consumption in just the first few months.
“Our secret to success is keeping top of mind that efficiency isn’t about using less, it’s about using the right amount,” he said.
Heat pumps are also gaining popularity, according to Caitlin Rood, senior national account manager at Bright Power. They are more efficient than other home climate-control and water heating systems because they absorb and move ambient heat rather than burning fuel or using energy-hungry electric resistance to generate it.
“Compared to the 80 to 95 percent efficiency we see with gas equipment, heat pumps operate at 300 to 400 percent efficiency, which makes electrification appealing,” Rood said, adding that heat pumps can render incredible potential savings—depending on the cost of electricity and the cost of gas in a given area—and a significant reduction on environmental impact.
Multifamily’s energy-saving drivers
Cost reduction remains the most important driver of any decision made by property owners and operators, especially with high volatility in energy costs. In dense urban areas, the adoption of sustainable standards and the implementation of local building performance laws, such as NYC’s Local Law 97 and BERDO, play a big role in shaping how owners and managers think about and approach energy efficiency. Building performance standards are spreading across the country, setting clear targets for energy reduction, and direct incentives from local utilities have proven to be an effective motivator for property owners to invest in efficiency upgrades, Beall mentioned.
But motivations have become more sophisticated, with resilience emerging as a primary driver, according to Phillips. The ability to maintain critical operations during power outages is increasingly valuable once grid disruptions become more common.
Property differentiation is another factor that makes owners and operators invest in energy-saving items. Buildings with visible sustainability features and lower utility costs attract both renters and investors. Furthermore, these features are part of the way many owners are responding to ESG commitments from their capital partners or preparing for evolving regulatory requirements.
Multifamily’s energy-saving headwinds
Cost drives the adoption of energy-saving techniques, and cost is the main hurdle to overcome in improving energy efficiency at multifamily properties, according to Merricks, as major retrofits can be expensive upfront. In addition, there is also hesitation around new technology and concerns about disrupting residents, which steers many property owners to opt for smaller upgrades instead of full-scale efficiency overhauls.
Another major challenge is that with multifamily residents often controlling their own utilities, it can make it difficult for owners to gather whole-building energy data and measure the impact of energy efficiency initiatives at their properties.
“In markets like California, where whole-building energy data disclosure is mandated, owners have a clearer picture of the impact of efficiency measures across an entire asset,” said Wheeler. “With this in mind, expanding mandates around data access in more markets and municipalities would be a valuable step forward.”
A similar challenge is linked to upgrading apartment interiors—especially for things like windows or lighting. It’s difficult to implement changes beyond common areas, according to Phillips.
Grid capacity can also be an impediment to more sustainable buildings, stated Rood. “Not all buildings have enough electric capacity to host electrification, and there is not enough capacity on the grid for mass electrification.” For now, California is leading the country when it comes to electrification because it offers substantial incentives in multifamily affordable housing that help offset these expenses. Catching up are Boston, New York City, D.C. and Denver, as each have adopted performance standards that are forcing buildings to electrify.
Achieving improved energy efficiency requires sustained focus, and “that’s going to be the real challenge for much of the industry,” believes Stanchak. “Most headwinds aren’t technical, they’re self-imposed. Lack of planning, lack of prioritization and fear—these are the bigger obstacles.”
Design-driven real estate firm Optima, Inc. has officially completed all spaces and begun welcoming resident move-ins at Optima Verdana®, its new luxury rental community in Downtown Wilmette, Illinois. Since opening its leasing gallery in May, Optima Verdana® has continued to see a surge in renters looking for a new North Shore apartment of its high standards, resulting in a swift 72% leased status, surpassing lease-up expectations.
Optima Verdana® offers 100 thoughtfully designed residences in one-, two- and three-bedroom layouts and penthouse configurations, spanning from 660 to 2,790 square feet. Monthly rents range from approximately $3,000 to nearly $12,000. Designed by Optima CEO and Founder David Hovey Sr., FAIA, and David Hovey Jr., AIA, the community stands apart from other rental offerings on the North Shore thanks to its contemporary design, comprehensive amenities, innovative sustainable features and abundant greenery.
Available in two distinctive finish packages, the residences at Optima Verdana® feature floor-to-ceiling windows with roller shades, 10-inch luxury wide-plank flooring, chef-inspired kitchens equipped with Fisher & Paykel appliances and Kohler fixtures, custom built-in storage solutions, wine fridges, spacious pantries, and bathrooms with free-standing soaking tubs and separate water closets in most floor plans. Private terraces or balconies, ranging from 65 to 931 square feet in size, feature Optima’s signature vertical landscaping system with plants that grow up and over the edge of each floor and also include quick-heating electric grills and fire pits in select residences.
Residents at Optima Verdana® can take full advantage of the building’s expansive seventh-floor sky deck, which offers sweeping treetop views of the North Shore’s skyline, including the Bahá’í Temple. The rooftop common area provides a range of indoor and outdoor amenities, such as a sun deck with multiple lounge chairs and dining areas; barbecues; herb gardens; a bocce court; fire pits; a residents club; a party room with chef’s kitchen, billiards and table tennis; a dedicated game room; a sauna; and a heated lap pool and spa with retractable glass walls designed for year-round use.
Additional indoor amenities can be found on the building’s first floor, including a 24-hour front door person, pickleball/basketball court, fitness center with cardio and strength-training equipment, yoga studio and massage rooms, a sports lounge, golf simulator, kids’ playroom, dog run and pet spa, library lounge with complimentary coffee service, and multiple work-from-home spaces including conference rooms and a business center. Residents can take advantage of fitness programming, ranging from yoga and Pilates classes to water aerobics and personal training services. Organized resident programming includes everything from a book club and Mah Jongg club to a running club and pickleball league.
The elevated living experience at Optima Verdana® extends beyond its design and finishes. The building also offers residents Optima’s complimentary concierge program, Optimized Service®, which includes white-glove, in-home package delivery, grocery delivery and plant watering. Residents can easily schedule on-demand services through the Optima Verdana® mobile app, such as housekeeping, pet care, virtual personal assistant, fitness classes, private chef services, on-site massages, and more. Additionally, Optima Connect® provides residents with exclusive discounts for area restaurants and retailers.
Optima Verdana® places a strong emphasis on sustainability and biophilic design through the use of sustainable technology such as green concrete and CRF heating and cooling systems. The community will achieve Two Green Globes certification through the use of bird-friendly glass, eco-friendly induction cooktops, and outdoor electric grills to further reduce gas emissions. Optima Verdana® features the Chicago-region debut of Optima’s proprietary exterior vertical landscaping system, which includes plants staying green year-round and promoting evaporative cooling, air purification, noise reduction and stormwater detention.
Located on the corner of Central Avenue and Green Bay Road, across from the Wilmette Metra commuter train station, Optima Verdana features 176 parking spaces, including electric vehicle charging stations. A publicly accessible plaza at the southeast corner of Optima Verdana is home to an 8-foot original sculpture titled “Curves and Voids,” which was created by Hovey and further enhances the community’s commitment to art and design.
