555 Greenwich

555 Greenwich

555 Greenwich: A Benchmark in Sustainable Development

555 Greenwich is a 16-story ground-up addition to the Hudson Square Properties (HSP) campus and features an innovative design by COOKFOX Architects that includes retail space, offices, outdoor terraces, and floor-to-ceiling windows.

The project abuts 345 Hudson Street, a 900,000-square-foot, 17-story 1930’s vintage building which is also part of the HSP portfolio. The façade features numerous setbacks with outdoor terraces and floor-to-ceiling windows which complements the massing and architecture of the adjacent 345 Hudson, and connects seamlessly on nearly every floor, offering tenants access to large floorplates for ultimate flexibility.

HSP broke ground on 555 Greenwich in 2021, with the goal of demonstrating our market leadership by developing one of the most efficient new buildings in New York City. Completed in 2023, the 270,000-square-foot development represents the next level of high-performance building, setting a new standard for sustainable and responsible development in not only the Hudson Square neighborhood but for future development in New York City.

ESG Ambition in Action

555 Greenwich has been designed to reduce annual electrical usage by 25% and carbon emissions by 45% over a traditional NYC-based Class A building, and to align with a 1.5°C Carbon Risk Real Estate Monitor (CRREM) pathway. With a projected energy use intensity (EUI) stranding date of 2047, the property is tracking to meet the Hines net zero operational carbon 2040 goal. The building is targeted to achieve the highest rating – LEED Platinum.1

The design process and construction practices implemented at 555 Greenwich aims to serve as a roadmap for climate conscious buildings in New York City and beyond. It is the first commercial development in NYC that provides a circular office infrastructure. This is done by integrating geothermal piles, thermally active radiant slabs, a dedicated outdoor air system (DOAS), and a fully electrified heat pump heating system to provide carbon emissions reduction and occupant experience. These principles intend to extend into the abutting 345 Hudson Street building for maximum impact.

By activating large 120’ deep caissons, the foundation system has been turned into a thermal battery. Excess energy is stored annually in the geothermal piles to provide free energy that would otherwise be wasted. The stored energy is used to activate the entire building structure by cooling or heating the building floorplates. The DOAS system provides 100% free air at the point of use. Using heat pumps to reject heat and provide high temperature chilled water in lieu cooling towers will save 800,000 gallons of potable water a year (four million gallons inclusive of 345 Hudson) at design cooling capabilities.2

The team at 555 Greenwich intend to utilize recycled and natural materials whenever possible. Tenant flexibility and employee experience are prioritized, with many collaborative gathering places and outdoor green spaces. Innovative technology supports health and wellness, and the DOAS system maximizes fresh, outdoor air and includes an air sampling and monitoring system to evaluate air quality in real time. The DOAS ventilation system will improve indoor air quality by delivering 70% more outside air than is required by code minimum as well as ASHRAE standards directly to the occupant, which is proven to positively impact cognitive function.

The result is a building with superior air quality, zero fossil fuel pollution on site, and that is projected to reduce electrical demand by 25% and carbon emissions by 45%3 as compared to the market. In addition, these design and amenities place tenant experience and wellness at the forefront.

In addition to the highest environmental standards, we also aim to impact the community. HSP works with the ACE Mentorship Program, Project Exalt, and Project Destined to create valuable internship opportunities that provide minority and under-represented communities with meaningful work experience in the real estate and AEC industries.

Investment Outcomes

By designing to higher environmental and energy performance standards and to meet net-zero operational carbon goals, Hines strives to ensure that the property remains attractive to future buyers, including institutional investors who have increasingly higher ESG requirements.

In a challenging New York leasing market, Hines believes that the delivery of an energy-efficient, net zero carbon building that aims to provide an attractive prospect to the best quality tenants. The LEED Platinum certification1 should make the ESG credentials clear to new occupiers, and we believe that this will help maximize occupancy. The design will ensure compliance with New York Local Law 97 so that the building (and the tenants) will not be liable for any future fines.

The energy efficiency and carbon associated costs at 555 Greenwich are estimated at a 1.2% hard cost premium, which will be negated through energy efficiency associated OpEx savings and regulatory fine mitigation, and incentives including a $2.7m grant from utility ConEdison.

The estimated return is $220k per annum or ~$3m in reduced OpEx over a 15-year span, which at an exit yield of 5.50% would potentially impact $4m on the exit price.4 This has been achieved with incentives that make the additional CapEx cost neutral.

1. There is no guarantee the asset will achieve all of its ESG objectives.

2. For 345 Hudson, the source is submetered water data from 2019. For 555, they would have done a calculation of the amount of cooling tower makeup water required.

3. As compared to traditional Class A high performance property with natural gas boiler, chiller and cooling tower. Projected to 2030. Assumes grid decarbonization and excludes potential on-site renewables or purchase of PPA. Based on energy model. From the Hines Carbon Impact Assessment Tool. Based off 2021 as designed energy model results. Hines confirms that, to the best of its knowledge, more updated information is not available and that the above information remains materially accurate.

4. Actual returns may differ materially from estimated returns shown. Assumptions are subject to further discussions and changes.

5. as compared to traditional Class A high performance property with natural gas boiler, chiller and cooling tower. Projected to 2030. Assumes grid decarbonization and excludes potential on-site renewables or purchase of PPA. Based on energy model.


Case Study is for illustrative purposes, and there is no guarantee that future investments will achieve the same results. The content herein and in the report is provided for informational purposes only. Nothing above or in the report constitutes investment, legal, or tax advice or recommendations. Such content should not be relied upon as a basis for making an investment decision and is not an offer of advisory services or an offer to invest in any product or asset class. It should not be assumed that any investment in an asset class described herein will be profitable. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice. Opinions or beliefs expressed in these materials may differ or be contrary to opinions expressed by others. Certain information above and in the report has been obtained from third-party sources. Hines has not independently verified such information.