Many real estate investors shy away from “green” or “sustainable” projects for a myriad of reasons. One of the most commonly cited reasons is the fallacy that investing in projects with an environmentally conscious scope do not provide the highest returns on investment. While this may have been true a decade ago or with projects not managed properly today, investing in sustainable, eco-conscious projects, especially here in Metro Phoenix, is proving to be lucrative. 


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A New Approach to Eco-Conscious Living

In 2008, the concept for a forward-thinking, cutting-edge project which could demonstrate that it is possible to foster fiscal responsibility and connection among residents, became crystal clear. Two specific projects, EcoPHOENIX and EcoMESA, collaborations with Habitat Metro, required bold investors who were comfortable contributing capital to ground-breaking eco-minded living projects that had never been done before at that density or scale in metro Phoenix.

The primary consideration for both projects was creating living spaces where the health of the occupants is the rule not the exception. When a project can increase biodiversity while being constructed rather than decreasing as it does in nearly every other project, that is a newfound approach residents and developers should demand. It is also of critical importance to be a good steward of building materials whenever possible. Many developers don’t consider the community and connections they can cultivate through the proper design of the building. Having green areas open to the public, or edible landscaping, or even just more trees are all great ways to invite the community to engage with one another and lower stress hormones among residents. 

Thomas McPherson, CEO and founder at Lukrom. (Photo by Bruce Andersen, AZ Big Media)

Finding Key Partners to Support Your Vision

Projects like this often require developers to invest a good amount of their own money and it is also important to reach out to individuals who are savvy about the unique attributes of real estate investments. These valuable partners do not need to have a full understanding about the eco-friendly aspect of a community. Often people think building environmentally minded properties requires more time, more money and will cause more headaches. This is no longer the case. Working to maximize efficiency and conserving resources is easily done when these goals are agreed to at the onset of a project. Building a team of key members who have a keen eye on the bottom line as well as a strong desire to improve the process of building sustainable living options is the kind of challenge that many in the industry are seeking.

It can be incredibly challenging for developers and real estate investment professionals to have a vision but not have the capital needed to make their dreams a reality. Those who want to invest in real estate need a partner to understand their needs and deliver products to meet those needs. For example, it is a tremendous relief for those fixing and flipping properties to get an opportunity to decrease their consumption of resources (like gas, water and electricity) through property upgrades funded by private money loans. Another possibility that opens up is for individuals to get involved in new ground up eco-conscious projects, especially when they do not have to jump through traditional lending hoops. This ensures we can all work together to increase the number of projects that are good at reducing our carbon footprint.

Supporting Housing Options That Make a Difference

Investing in sustainable living communities by choosing to live there or by providing the capital needed to complete upgrade or ground-up projects are both sound investments. You don’t have to choose between making environmentally minded decisions and making money. You can certainly do both. When real estate investors can enjoy a return on their investment while at the same time facilitating stronger connections and putting a high priority on community relationships through a new way of developing communities, they truly gain wealth that matters and improves the places we all call home.


Author:  Thomas McPherson is CEO of Lukrom. Lukrom is a Phoenix-based real estate investment firm offering products and insight so others can reap the rewards of investing in projects that matter.