Green Rewards Retrofit: 272,160
SF Multifamily Asset in Fargo, ND

Ecofi designed and executed a full-scope Green Rewards that exceeded the 15% energy and 15% water savings targets, delivering $83,982 in annual utility savings with a 4.1-year payback.

Where It Started

Green loan principles are reshaping how property owners fund sustainability upgrades. These green financing frameworks provide a structured path to capital for energy and water projects, with a straightforward qualification process. Understanding the mechanics positions owners to reduce operating costs, strengthen asset value, and build a more competitive portfolio. This page outlines the financial case for green loans and why commercial real estate professionals are increasingly incorporating them into long-term asset strategy.

The Challenge

Securing a green loan for this 272,160-square-foot multifamily property built in 2004 in the Upper Midwest required a clear efficiency strategy across 243 units and 423 bathrooms. Ownership carried direct exposure to tenant utility expenses, creating a clear case for strategic capital investment in efficiency upgrades. To meet the program’s eligibility requirements, the property needed to demonstrate projected reductions of at least 15% in both energy and water usage. Because the majority of the building already had LED lighting installed, ecofi identified a broader set of measures across water efficiency, energy systems, and HVAC controls to satisfy and surpass the program thresholds.

Client Goal

Securing a green financing solution requires reducing whole-property energy and water usage by at least 15% each, while maximizing long-term NOI impact for an owner with tenant utility exposure.

Ecofi’s Role

Full-scope program design, measure selection, implementation oversight, and savings verification across water efficiency, energy efficiency, and HVAC & controls systems..

What ecofi Delivered

Ecofi developed a layered retrofit strategy targeting three primary systems. Each measure was selected based on its projected savings contribution, feasibility of installation within the project window, and alignment with DOE Better Buildings multifamily efficiency benchmarks for properties of this size and vintage. The resulting scope was structured to meet green financing requirements while delivering long-term operating value for the asset.

Water Efficiency

• High-efficiency toilets
• High-efficiency showerheads
• High-efficiency aerators
• Smart irrigation system

Energy Efficiency

• LED lighting upgrade
• 75% dishwasher replacement with Energy Star models
• Weatherization: door sweeps & window sealing

HVAC & Controls

• Smart thermostats
• R5 insulation on domestic hot water piping
• R9 insulation on exposed central boiler system piping

Measured Results

The completed scope delivered savings across every tracked metric. The combination of water and energy measures satisfied the program thresholds and positioned the property for sustained year-over-year operating cost reductions.

Natural Gas Savings

14,880 Therms / Year

Energy Savings

72,024 kWh / Year

Energy Savings per SF

6,370 kBtu/SF

Emission Reduction per SF

0.178 kgCO2e/SF

Total BTUs Saved

1,733,755,971 BTU

Water Savings

4,687,202 Gallons / Year

A Strategy Built Around Asset Performance

The strongest outcomes come from matching the right measures to a property’s existing baseline, not from applying a standard checklist. For this Fargo asset, ecofi’s process began with a detailed assessment of current system performance with green lending standards in scope and the remaining available efficiency gains.

With LED lighting already installed across most of the site, the energy savings path ran through HVAC system improvements and appliance upgrades rather than lighting alone. Pipe insulation at the R5 and R9 levels addressed heat retention in the domestic hot water and central boiler systems, two of the most consistent areas for energy improvement in properties built during this era. Smart thermostat installation gave ownership and management a long-term tool for controlling consumption at the unit level.

Every measure selected carried a defined savings contribution tied directly to the property’s operating profile and its eligibility under the green mortgage program. This approach ensured that the retrofit scope was both financially viable and positioned to deliver verified results after the 54-day implementation window. For a 243-unit asset with tenant utility exposure, precision in measure selection directly translated into NOI impact.

Water Efficiency as a Value Driver

On the water side, the property’s 423 bathrooms presented a significant efficiency opportunity. High-efficiency fixtures installed across toilets, showerheads, and aerators, combined with a smart irrigation upgrade for the grounds, resulted in a 4.69 million-gallon annual reduction, exceeding the program thresholds and strengthening the property’s case for green financing.

The project was completed between September 16 and November 8, 2024, a 54-day window that required tight coordination across all three trades to meet the program’s installation timeline while maintaining full resident operations. ecofi managed the full implementation sequence from measure selection through completion verification, ensuring every installed measure was documented and aligned with program reporting requirements.

For multifamily owners with tenant utility exposure, the financial logic of a green loan program extends beyond the incentive structure. Lower operating costs strengthen the property’s income statement, support long-term occupancy stability, and position the asset for more favorable terms at the next refinance event.