Acadia at Cornerstar Apartments is located in Aurora, Colorado, a beautiful suburb of Denver near Parker and Centennial. In 2022 Acadia at Cornerstar Apartments earned the IREM Certified Sustainable Property designation.

Lantern Woods Apartments is located in Fishers, Indiana near Indianapolis. In 2022 Lantern Woods Apartments earned the IREM Certified Sustainable Property designation. The property has bicycles available for resident use and electric car charging stations.

The Jackson Control Sustainability Awards recognize exceptional performance among IREM Certified Sustainable Properties (CSP®). This award program highlights the teams of people behind sustainable building performance and encourages knowledge-sharing to help others on their sustainable property journeys.

In order to obtain the IREM certification, a property must demonstrate it can achieve a minimum total of 62 points, with points awarded by meeting specific objectives in the following categories:

• Management's demonstrated commitment to sustainability;
• Energy and water benchmarking and reduction goals;
• Commitment to health, wellness and safety of residents;
• Recycling practices, including waste diversion targets; and
• Sustainable purchasing practices.

We believe that the IREM CSP certifications benefits our funds in a number of ways. In addition to enhancing the vehicle’s GRESB score and providing a verifiable way to track sustainability progress within the portfolio, these certifications can facilitate further awareness around sustainability initiatives at the property level.

Sentinel's overall portfolio contains 28 properties that we have certified under the IREM CSP program, with more properties scheduled to obtain certification in 2023.

Congratulations to the management and facilities teams that have done the crucial work that these nominations recognize.

Read more about Sentinel's Sustainability practices.

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Numerous sustainable initiatives led to Phase 2 of Element 27 receiving a 5 Star Rating, including the rooftop photovoltaic system seen here.

Phase 2 of Sentinel's Element 27 Build to Rent apartment community in Subiaco (Perth), Western Australia, has successfully achieved a 5 Star Green Star Design & As Built v1.3 certified rating from the Green Building Council of Australia.

The 5 Star Green Star certified rating represents Australian Excellence, demonstrating that the project has achieved a high standard of design and efficiency in construction, and verifying the environmental and social outcomes Sentinel set out to achieve.

Founded by the Green Building Council of Australia in 2003, Green Star is an internationally recognised rating system developed for the Australian environment that sets the standard for healthy, resilient, positive buildings and places.

Keith Lucas, Managing Director of Sentinel in Australia, said "We're committed to delivering high quality and sustainable Built to Rent communities in Australia that prioritise environmental performance and provide our residents with an opportunity to live greener. Having these commitments recognised by the Green Building Council of Australia is key to showcasing our focus on bringing more sustainable housing choices to the market."

Key sustainability features at Element 27 include electric car charging stations, a 30kW photovoltaic system for common area energy usage, a rainwater and grey-water recycling system, specialty waste streams, access to a centralised geothermal system, energy-efficient appliances and a leading 8-star NatHERS rating.

In 2021, Phase 1 of Element 27 also achieved its status as the first Carbon Neutral Certified apartment building in Australia, following Sentinel’s close work with the Green Building Council of Australia (GBCA), Climate Active and Stantec's Sustainability team to pioneer a certification methodology for the Build to Rent model that acknowledges the sector’s unique potential for ongoing energy leadership in the residential sector.

Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia. Read more about our Australian Build to Rent Projects and our Sustainability achievements.

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Sentinel's Element 27 Build to Rent apartment community in Subiaco (Perth), Western Australia, has successfully achieved carbon neutral certification for a second consecutive year under the Climate Active Carbon Neutral Standard for Buildings.

In 2021, Element 27 officially achieved its status as the first Carbon Neutral Certified apartment building in Australia, following Sentinel's close work with the Green Building Council of Australia (GBCA), Climate Active and Stantec's Sustainability team to pioneer a certification methodology for the Build to Rent model that acknowledges the sector's unique potential for ongoing energy leadership in the residential sector.

In line with the carbon neutral recertification milestone, Western Australia's Hon. Reece Whitby MLA, Minister for Environment; Climate Action discussed with the Sentinel team how its Build to Rent model and industry-leading sustainability strategies can pave the way for future residential developments in the state.

"We encourage West Australians to embrace innovative ways of sustainable living, to reduce our carbon footprint," said Minister Whitby.

"It's great to see Sentinel's commitment to smart housing choices, and we'd love to see more developers taking up greener solutions in the future."

To achieve carbon neutral recertification, Element 27 has maintained numerous sustainable operations throughout the past year, targeting enhanced water and energy conservation, reduced greenhouse gas emissions and utilising Australian-based carbon credits.

Key sustainability features at Element 27 include electric car charging stations, a 30kW photovoltaic system for common area energy usage, a rainwater and grey-water recycling system, specialty waste streams, access to a centralised geothermal system, energy efficient appliances, occupancy sensors, an embedded metering network and a leading 8-star NatHERS rating.

Keith Lucas, Managing Director of Sentinel in Australia said: "We're proud to see Element 27 maintain its carbon neutral status from Climate Active. Not only is the building a great example of how the Build to Rent model can offer Australians enhanced housing choices and an opportunity to live greener, but it has also created a critical pathway that will allow more residential buildings to target ongoing carbon neutral outcomes.

"As our Build to Rent pipeline expands across Australia, we remain committed to pursuing industry-leading sustainability targets and helping set new benchmarks for energy performance in the housing sector," said Mr Lucas.

Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia. This includes The Briscoe, a 172-unit apartment building in Melbourne which is scheduled for completion in March 2023 and similarly designed to achieve carbon neutral certification.

The announcement has received coverage in Australian media:
Australian Property Journal
Business News

Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia. Read more about our Australian Build to Rent Projects and our Sustainability achievements.

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Lord Mayor Sally Capp and Sentinel Managing Director Keith Lucas at the topping out ceremony for the Briscoe. Photo: Kit Haselden Photography

Sentinel has marked the 'topping out' construction milestone at its Build to Rent apartment building, The Briscoe, in West Melbourne. On completion, the project will be Sentinel's third completed Build to Rent community in Australia.

To commemorate the achievement for the project and Melbourne's growing Build to Rent sector, The Lord Mayor of Melbourne, Sally Capp, joined Sentinel's Managing Director in Australia, Keith Lucas, construction partner Crema Constructions and project architects Rothelowman on-site at 164-168 Roden Street for a site tour and topping out ceremony.

Sentinel has established The Briscoe as the name of its new apartment community, paying homage to the site's former status as home to one of Australia's largest Victorian-era hardware firms, Briscoe & Company Limited. The Briscoe will be home to 172 premium and sustainable Build to Rent apartments across seven levels, ranging from one- to three-bedroom layouts. It is scheduled to reach practical completion in March 2023.

Melbourne Lord Mayor Sally Capp welcomed the project and said it will add value to Melbourne's housing landscape.

"I welcome more, quality housing supply in our city, especially when it is combined with community facilities and environmental outcomes," the Lord Mayor said.

"Melbourne is Australia’s most liveable city and it is projects like The Briscoe by Sentinel that continue to strengthen that title."

Artist rendering of The Briscoe, featuring the historic façade of the original building and recreated historic signage. Final finishes may vary.

As pioneered by Sentinel's previous Australian Build to Rent properties, The Briscoe will pursue carbon neutral certification on completion. The building has also been designed to be fossil-fuel-free and target a 5-Star Green Star rating from the Green Building Council of Australia.

The Briscoe will have a broad range of state-of-the-art amenities to provide residents with a sophisticated rental experience. These amenities include a rooftop terrace with sweeping views overlooking the Melbourne CBD skyline, a gym, a residents' lounge and dining area that can be booked for private functions, a business centre and a landscaped, green inner-courtyard at the centre of the building which will act as the uniting feature of the community.

Sentinel's on-site management, leasing and maintenance staff will provide an enhanced rental experience for residents, including a streamlined and personalised leasing process, 24/7 on-site maintenance and an ongoing program of curated resident events to grow and sustain a vibrant rental community.

Keith Lucas, Managing Director of Sentinel in Australia said: "It's fantastic to see The Briscoe, our first Build to Rent development in Victoria, progress another step closer to completion. It will offer residents a refined, highly sustainable and community-focussed lifestyle, creating a sense of place within and adding to West Melbourne’s existing character.

"The Briscoe has been thoughtfully designed outside and in for a renter-oriented living experience. The design draws heavily on the eclectic industrial heritage of the site and art deco influence of the iconic Briscoe and Co signage. The building is also designed to achieve leading sustainability benchmarks including carbon neutral certification, empowering residents to live greener," said Mr. Lucas.

The announcement received positive coverage in Australian media:
Herald Sun
The Fifth Estate
Brisbane Times
The Chronicle

Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia. Read more about our Australian Build to Rent Projects.

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You can read the entire article on page 30 of the publication here: A Holistic Approach Drives ESG Results

Sentinel believes that environmental, social responsibility and corporate governance (ESG) factors can have an impact on investment performance and must be considered when evaluating real estate investment opportunities and managing real estate assets. Learn more about Sentinel's Sustainability.

The post Sentinel’s Approach to ESG Featured in NAREIM Dialogues appeared first on Sentinel Real Estate Corporation News.

Australia has a need for innovation in housing. At Sentinel, we expect continued growth in demand for housing and within that demand, a desire for premium product with amenities, services and sustainability outcomes that have not previously existed in the Australian marketplace. The current model does not address these needs for renters or typically allow for institution investors; however, the Build to Rent model offers a solution and an opportunity for both renters and investors.

Element 27, located in a Perth suburb, is Australia’s first ground-up build-to-rent development. Sentinel Real Estate Corp opened the property in 2019.

For the Renter

Under the established Build to Sell, or strata, system in Australia, units are pre-sold to individual investors who in turn rent them out. As a result, the rental market is highly fragmented with landlords primarily motivated by asset value appreciation rather than service to their tenants. For renters, this structure has resulted in inconsistent management and maintenance experiences and expenses, bidding wars, and limited rights that increase the cost of renting. Furthermore, strata developers do not intend to operate the property long-term, and as a result, often select less expensive and less efficient appliances and building systems during construction at the cost of future owners and renters.

Build to Rent is an entirely new rental experience for Australians that focuses decision-making around the resident – including equitable leasing protocols based on clear qualifications; a first-come, first-served application process; consistent quality in building materials, finishes and appliances; thoughtful amenities that provide opportunities for community-building; and planning policies that address gaps and create pricing consistency in the rental market.

At Sentinel, our 52-year history of investing in and managing institutional-quality multifamily properties across the US has informed our significant expertise in what it takes to offer communities that deliver exceptional living experiences to residents and strong returns to investors. Recognizing the need in Australia over 10 years ago, we began investigating the market and laying the groundwork to create institutional-quality rental housing. The success of this concept has been proven at Element 27, Australia’s first ground-up Build to Rent development, which Sentinel opened in 2019.

Element 27 was developed to include durable materials that extend the lifecycle of the original investment and reduce maintenance for both the resident and the ongoing management team. A particular emphasis was placed on the interior of each unit, which was designed to be larger than the average comparable Build to Sell unit, with superior finishes, comprehensive appliance packages and thoughtful layouts. The tenants enjoy 24/7 on-site maintenance, on-site building management and a host of mindful amenities including a state-of-the-art fitness center, a pool with a sundeck and cabana and a rooftop terrace with an outdoor kitchen and lounge. For residents whose needs may change over time, there is flexibility in unit options, assuring that they can continue to reside in a development and in a neighborhood that they enjoy.

The property was fully leased in 8 months, which exceeded underwriting expectations. The lease-up period started out relatively slow as the Build to Rent concept was unfamiliar in the Perth market. However, as we educated the market, we began to see significant interest as this compelling new concept began to spread through word-of-mouth. Since reaching 100% leased, the property has experienced a renewal ratio of approximately 70% – significantly higher than traditional US multifamily housing, which is typically around 50%-55%.

Apartment kitchen and community social room with coffee bar at Element 27

For the Investor

While the Build to Rent market in Australia is in its early stages, it is a highly regarded emerging asset class with tremendous opportunity for growth. It is much more established in the US, with investments expected to reach $148 billion in 2021, and in the UK, where investment has expanded significantly since 2013 with the help of the government. In fact, Build to Rent now accounts for one in four new homes built in London. The similarities in culture and society between these countries and Australia provide a strong foundation from which to develop a platform that is tailored to serve this market.

The typical Build to Sell strategy, because the property is subdivided amongst owners at completion, misses a fundamental opportunity to create a product that meets real consumer needs for consistent, high-quality housing while generating stable, long-term cash flows and better returns for investors. The singular management style of the Build to Rent strategy also allows the investor to minimize operational costs, optimize building performance, and ultimately create homes and communities that appeal to – and retain – tenants for the long term.

To illustrate this point, Element 27 has achieved a rental premium of 20%-30% over comparable strata rental apartments in the surrounding neighborhood. Following the success of this property, we committed to two more phases, which will deliver another 172 units to the market over the next 18 months. We have also expanded the platform into Melbourne, where our first 172-unit development is under construction and expected to open in late 2022. Our pipeline in Australia currently calls for the delivery of more than 1,200 units over the next three to five years. We are continuously seeking additional sites in the Eastern States, and we have continued to expand our acquisition teams in these markets to address the increasing demand for these opportunities from investors.

The Importance of ESG

Climate change has brought a new urgency to sustainable investing and a growing recognition that ESG factors have an impact on investment performance. In fact, with global institutions increasingly identifying mandates for socially impactful investing, it is not only irresponsible to ignore sustainability, it is also potentially detrimental to the ability to raise capital.

From our perspective, not only do ESG efforts help to lower operational costs and reduce the environmental impact of properties – a critical need as buildings are estimated to generate around 40% of global greenhouse gas emissions annually – but they also help to drive resident satisfaction, leading to longer tenures and ultimately driving returns for investors. In the US, where the rental housing market is more mature, data from an AMLI Residential tenant survey in 2019 showed that 80% of residents believe living in a “green” apartment is beneficial to their health, and 61% were willing to pay more to live in a sustainable community.

Our goal is for our entire Australian portfolio to meet a net zero carbon emission mandate – and doing so would make this the first Build to Rent platform anywhere to achieve this. To that end, we’ve worked closely with the Green Building Council of Australia (GBCA), Climate Active and our consultants at Stantec to help create a pathway for newly constructed Build to Rent communities to achieve carbon neutral certification.

In comprehensively managing the process from construction through ongoing management and maintenance, the owners and operators of Build to Rent properties can influence each building’s systems, finishes and fixtures to ensure consistency with anticipated investment lifecycle costs and emissions. This enables them to manage and maintain high-performance products with minimal waste and maintenance, and also provides the ability to track diverse data sets on a consistent basis and optimize building performance in real-time. Armed with this data, Build to Rent managers can more quickly collect the significant data needed to document environmental benchmarks, allowing for faster pathways to related certifications for their buildings.

Element 27 recently became the first apartment property in Australia to receive carbon neutral certification along with an industry-leading 8-star NatHERS rating. Key sustainability features include electric car charging stations, energy efficient appliances, a 30kW photovoltaic system for common area energy, specialty waste streams, access to a centralized geothermal system, a rainwater and grey-water recycling system, occupancy sensors and an embedded metering network. Bringing significant managerial resources to the community, we can ensure that future operational practices, amenity offerings, installations and upgrades continue to meet or exceed the high sustainability goals, equitable practices and social engagements sought by both our investors and our residents.

Element 27 rooftop terrace with outdoor kitchen and lounge area

For the Future

As a nascent asset class in Australia, the Build to Rent sector has a long runway for growth, and others have also entered the space, recognizing the investment opportunity. Like most places in the world, Australia is experiencing a housing crisis – in both supply and affordability – and this is one of the reasons we’ve seen the Build to Rent pipeline expand by more than 68% since last year, according to CBRE. As with the multifamily markets in other countries, investor interest in the asset class continues to be driven by the ability to generate stable cash flows.

The past several years have seen Australians shift their perspective on many aspects of the property market, including renting and home ownership. We’re confident Build to Rent will continue to have high growth prospects in years to come as it is a viable way to provide residents with quality homes, while creating greater convenience, flexibility and amenities, as well as fostering a sense of community.

Being a first mover has its challenges and advantages. From educating the market to working with government agencies and organizations like the GBCA and Climate First, we have had the opportunity to more deeply comprehend the unique needs and values of the Australian market. We believe we have reached an inflection point where awareness and understanding are driving sustained investor and resident interest that we expect will lead to explosive growth and opportunity in the coming years.

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Element 27 was recognised in the Best Sustainable Development category – a reflection of Sentinel’s commitment to creating high quality and sustainable living options for Australians.

Michael Streicker, President of Sentinel, said "Build to Rent provides a unique opportunity when it comes to sustainability. The developer’s continued role in management of the building following construction means it is possible to track and enhance environmental performance at a level well above what’s possible in traditional strata residential models.

"Our Element 27 development in Subiaco, Perth, was recently certified as the first Carbon Neutral apartment building in Australia, making it a leader in its class and illustrating the enhanced environmental outcomes that Build to Rent projects can deliver. We are delighted to receive recognition for the project at this year’s WA Property Awards."

Element 27 was designed to incorporate numerous strategies aimed at water and energy conservation, reduction in greenhouse gas emissions and minimal maintenance and waste. It was also designed with durable materials, energy-efficient appliances, double glazed glass, electric car charging stations, a rainwater and grey-water recycling system and an embedded metering network, earning it an impressive 8-star NatHERS rating, in addition to the Carbon Neutral certification.

To learn more, visit the Element 27 website here.

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Calls for sustainable residential developments have grown from a rumble to a roar across Australia, as climate change and social awareness provokes action around the world. With ambitious Paris Climate Agreement targets and social justice reform taking precedence in the political arena, investors worldwide are being motivated to enhance their portfolios through real estate investments that make positive environmental, social and corporate governance (ESG) impacts. For many institutional owners of real estate, ESG has become a key driver of portfolio management decisions, often directly connected to the investors’ own internal ESG mandates. As a result, the current movement towards sustainable residential development appears to be a long-term structural change in the industry.

This focus on sustainable residential development is good for both the planet and the bottom line. As the environmental and social priorities of long-term capital sources such as pension funds, endowments and trusts are driving sustainable outcomes, research also indicates that many consumers will pay a premium to live in housing that reflects their values. According to Apartmentdata.com, “about 80% of apartment residents believe that living in green multifamily communities is good for their health…Younger generations are even willing to pay more for sustainable products and services. In fact, 61% of renters say they would pay more each month in rent for an eco-friendly apartment.” 

Drawing on the established US and UK models, Australia’s burgeoning Build to Rent sector proposes unique design and construction opportunities that make the nascent housing product one of the most sustainable in the wider residential market. In addition, purpose-built rental properties operating under a singular management organization with access to institutional capital can execute sustainable decision-making in their long-term operational strategy. This confluence of objectives is unprecedented to date in the Australian residential sector.

As Sentinel expands its Australian development program, making our mark on residential development and management practices across Australia, we are consciously responding to the evolving demands of both investors and renters with respect to sustainability.

Element 27, Subiaco WA, Australia’s first purpose-built Build to Rent development

BUILDING ON A FOUNDATION OF SUSTAINABILITY

In Perth, Sentinel’s Element 27 is currently setting ambitious sustainability standards for purpose-built Build to Rent properties of the future.

Based on Sentinel’s international experience with this unique asset class, Element 27 was developed to include stylish, yet durable materials to extend the lifecycle of the original investment, support a pet and family friendly community and reduce maintenance for both the resident and the ongoing management. Energy-efficient appliances, double glazing, solar shading, rooftop PV’s, LED lighting and illumination controls, as well as a managed metering network are used to boost energy performance. Furthermore, rainwater capture along with greywater recycling, low-flow sanitary fixtures and central filtration plants are incorporated to reduce water impacts and improve water quality, while enhanced waste stream management supports the development’s high sustainability standards now and well into the future.

Bringing significant managerial resources to the community, we can ensure that future operational practices, amenity offerings, installations and upgrades continue to meet or exceed the high sustainability goals, equitable practices and social engagements sought by both our investors and our residents. These environmental foundations have driven Element 27’s industry leading 8-Star NatHERS rating for a residential property and support its aspirations towards a net zero operational strategy.

Additionally, taking the resident on the sustainability journey is a key step in the evolution of this growing concept. Education sessions on the best recycling practices, exposure to electric car charging stations and access to bike- and car-share programs nearby, along with social activities that create awareness of the community’s sustainable attributes and aspirations are emerging tools in solidifying our residents’ commitment to a sustainable lifestyle and housing choice, even at a premium.

The groundbreaking development has elevated expectations for all future Australian residential projects, including at our own Build to Rent developments under way in Subiaco and Scarborough, Perth and in West Melbourne, Victoria.

A PROPERTY OPPORTUNITY BUILT FOR THE FUTURE

We firmly believe Build to Rent developments will raise the bar for sustainability and equity across the entire Australian property industry.

The alignment of our development strategy with ongoing building management makes it easy to maintain, track, benchmark and publish environmental performance in a way that’s typically not possible in a traditional Build to Sell asset of this scale. This long-term strategy facilitates the achievement of highly sustainable outcomes and essentially incentivizes the building’s ongoing management staff to improve them over time.

Build to Rent is quickly becoming a more desirable lifestyle option when it comes to quality of living and housing security for renters. By instilling a sense of community and pride among our renters, we have enhanced the development’s social benefits and continue to achieve high occupancy. This is not only integral to economic performance and returns, but essential in establishing an inclusive culture around sustainability.

As Sentinel pursues this innovative strategy, we are confident in our ability to achieve significant financial returns and respond to growing investor and public demand for sustainable buildings. We are staking our claim on a sustainable future, built on a foundation of long-term success and experience.

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To learn more about Sentinel and our sustainability efforts, explore our Sustainability page, which includes our ESG Policy, ESG Report and our Sustainable Living Guide.

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