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Eco- REIT

It was an Alabama summer like every other: hot and humid. Vehicle emission levels were on the rise and red zone alerts were issued to warn the populace. In Birmingham, Colonial Properties Trust was learning what it could do to minimize the effects of automotive exhaust that ultimately damages the ozone layer.

Electric cars, they found, were environmentally friendly and cost effective. Now security staff and a maintenance crew use electric Ford Ranger pick-ups to take care of the REITs Brookwood Village mall.

"Colonial Properties is always looking to be a good environmental corporate citizen. We also try to find economical ways to do things as well," explained Bill Roden, assistant manager, Brookwood Village.

Electric cars do both. Since they run on batteries the REIT doesn’t have the expense of oil or gasoline costs. And, no gasoline means no ozone unfriendly emissions. "It’s virtually maintenance free," said Roden.

The downside is that the vehicles have to be charged every eight hours. To do this, charging stations are installed on site at the property. However, users say the benefits outweigh the inconvenience of recharging batteries.

"The power the pick-ups have is surprising," added Roden. "Plus, they are very quiet vehicles. It’s sometimes hard to believe they’re actually running."

But, they are running. They’re running at Brookwood Village in Birmingham, AL, Bel Air Mall in Mobile, AL and Colonial Center at Mansell Overlook in Atlanta, GA.

"Colonial Properties has chosen to step out front even though they are not affected by energy legislation that requires you to have some alternatively fueled vehicles," said Bob Hawkins, manager, electric transportation, Alabama Power Company. "We are very pleased they worked with us."

Under the 1992 Energy Act, state and federal governments and utilities are required to use 90 percent of alternatively fueled vehicles by 2001. Alabama Power chose electric cars and has been introducing customers to their benefits ever since.

"We have vehicles in marketing we loan out to selected customers to see if it fits their niche or need in that type of vehicle," explained Hawkins. "They don’t fit everywhere."

That cost to run an electric car is about two cents a mile. However, their range is about 55 miles without recharging the battery.

"Brookwood was one of the first to use electric cars and they thought they worked extremely well," said Hawkins.

At Brookwood Village, Alabama power installed charging stations for the Ford Rangers now in use there.

"Alabama power wanted to do it for two reasons," said Roden. "One, so we could actually use vehicles on the property, and, two, they wanted to put charging stations where the public can see them."

After using the two Alabama Power loaner vehicles, Colonial Property decided to lease two Ford Rangers from Ford Motor’s incentive program. It allows a customer to lease an electric model Ranger that typically costs around $35,000 per vehicle at the gasoline model cost of about $15,000.

"Colonial is in the process of developing mixed use properties and this type vehicle would be great as a go between for those types of properties," said Roden. "To us, it also shows that Colonial is concerned about environmental issues."


Real Estate Portfolio® is the magazine for REITs and real estate investment.

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