Unleashing Innovation: Kilroy Realty Corporation and Bridgepoint Education

Recognizing the vital role that tenants play in energy consumption, Kilroy Realty Corporation’s (KRC) interest in high-performing, energy-efficient space extends beyond its new construction projects and common area spaces. The company has continually looked for opportunities to influence the energy consumption of tenant spaces as a way to further improve the performance of its buildings. In Bridgepoint Education, KRC found the perfect partner.

The engagement between KRC and Bridgepoint around sustainability blossomed after the KRC asset management team requested utility consumption data from Bridgepoint’s corporate campus on Evening Creek Drive in San Diego. Bridgepoint leases two full buildings and part of a third on the property owned and operated by KRC. The asset management team and Sara Neff, KRC’s Vice President of Sustainability, needed the data – pulled from 21 meters in one of the buildings – in order to apply for ENERGY STAR certification. Bridgepoint willingly shared the data, allowing Neff to complete the application, earn ENERGY STAR certification, and demonstrate both organizations’ commitment to energy efficiency. This collaboration set the stage for future energy-efficiency upgrades.

With a foundation of energy data and an established relationship, Bridgepoint sought KRC’s help in piloting a cutting-edge, efficient lighting technology. Neff and her team worked with the tenant to green-light the project, but the high upfront cost was a barrier. Neff and the third-party vendor proposed that Bridgepoint consider On-Bill Financing (OBF). Through her relationship with San Diego Gas and Electric and other California utilities, Neff had learned about the utility’s OBF, which provides up to $100,000 in 0% financing for efficiency upgrades tied to a single meter, with repayment through the energy bills. With OBF a possibility, Bridgepoint took a step back and worked with the vendor to identify a more comprehensive package of energy-efficiency improvements, including hot water and discharge air temperature reset, cooling tower filtration pump runtime optimization, and installation of variable-frequency drives on chilled water pumps. The estimated energy savings from these improvements, supported by the energy benchmarking data, is close to $40,000, with a simple payback of less than 2 years.