CASE STUDIES - A
FINANCIALLY VIABLE
WINDOW RETROFIT
PROGRAM
MISSION & VISION STATEMENTS
Bex Systems (“Bex”) offers best in class facade systems to the retro-fit market utilizing strategic partnerships with insurance, engineering, construction, and façade manufacturing companies. Furthermore, Bex is the exclusive partner of State Window, in the Window Retro-Fit market.
WHO IS BEX SYSTEMS?
Peter Bekelis
President & Owner
Peter oversees operations and sales of the company. Peter sold his insurance brokerage to Hub International in 2010 and has worked in the insurance, restoration and construction industry since.
Bex provides multi residential building owners compelling glazing products, which provide a sleek new look, reduced operating costs, and environmental/energy savings. Financing options are also available. Bex recently signed an exclusivity agreement with State Window Corporation (“State”) to supply the window retrofit market. State specializes in providing high performance window systems to the multi residential and commercial markets. States window wall provide unmatched thermal and structural performance to their customers sites.
State’s MC5
Window Wall System
Established in 2007, State is one of the most respected window systems providers in North America. State’s MC5 Window Wall System provides a multi-chambered environment with unmatched thermal and structural performance.
“MC5 is the only true unitized rain screen window wall system on the market today. Thanks to a series of five chambers within the system, MC5 completely eliminates external moisture penetration. Plus, the introduction of the I-Strut thermal break 85% wider than the standard PVC break significantly reduces heat and cold transfer. The U-Value and condensation index are both improved by 50% over traditional window wall systems. In fact, tests show that with the introduction of high-performance Low-E glazing and a warm-edge spacer, the window can achieve a U-Value of 0.29 BTU/hr-sf F.”
- State Window Corporation, 2021
Benefits & Challenges With Window Retrofits In Ontario
Benefits of Window Replacement
- Financial Benefits through energy savings, and lower maintenance costs
- Energy Efficiency – new energy efficient windows can reduce energy loss by over 30%.
- Tenant Comfort
- Higher Rents – new windows can improve the building aesthetic and reduce drafts attracting higher rents.
- Increase Retention Rates
- Increase Building Value
- Carbon Tax Protection: Natural Gas Carbon Pricing will reach price of $170 per tonne measured in carbon dioxide equivalent (tCO2e) by 2030; currently $40/tCO2e.
- Alignment with Government of Canada reduction of Greenhouse Gases (GHG) targets and initiatives.
- Updating building to current code compliance requirements.
Challenges in replacing windows
- High capital cost
- Landlord Tenant Act allows landlords to recover partial cost or window replacement
- Long Term Payback – over 15 years
- Increase in building value is less than the cost of replacing windows.
- Construction time and coordination.
Bex Offers Financing Solutions To The Retro-fit Market
Canadian Infrastructure Bank (“CIB”) Retro-fit Financing
- CIB will invest up to 80% of capital invested in Retrofit projects over 25 years at an interest rate of 3% or better. CIB has committed to a minimum pooled investment of $25 million.
- Retrofit projects require a minimum of 30% target Green House Gas (GHG) savings for single projects or across an entire portfolio of buildings as compared to a baseline scenario. Or minimum of 25% GHG savings (or 25% energy savings) for individual projects within a portfolio. Based on the current and forecast carbon intensity of the provincial electricity grid where the project is located.
- Retrofit project types include retrofit projects that achieve significant GHG savings from energy efficiency, heating decarbonization, on-site behind the meter renewables and energy storage.
Detailing the areas of financial benefit afforded through Bex window replacement program
-
Energy Savings
A Bex Systems window retrofit, delivered through its industry relationships, results in a 30% or greater reduction in natural gas costs.
-
Landlord Tenant Act Cost Recovery
Landlord tenant act allows building owners to recover costs by escalating rent on certain tenants by 3% per year over the course of three years.
-
Rent Increase upon turnover
Landlords can increase the rent on suites upon turn over of tenants over time.
-
Increase in Building Value
By decreasing operational costs achieved through reduction in energy consumption, and maintenance of windows, building values are increased.
-
Government incentives
By reducing carbon footprint at your facility and reducing the overall energy consumption, building owners can receive incentives to increase return on investment and feasibility of installation of windows.
Energy Loss, Carbon Tax
A buildings exterior envelope can contribute to over 50% of a building’s energy loss. With most of energy losses occurring in the heating season.
According to Natural Resources Canada (“NRCan”) the average Energy Intensity of an Apartment building in Ontario was 0.57 GJ/m2 (14.59 kWh/Sq Ft). Two Building’s located in Toronto shown in Table A show significant deviation from the Average Intensity.
With most of the Energy Intensity coming from Natural Gas, building owners are exposed to significant Carbon Tax risk. Current Carbon Tax is 7.8 c/cubic meter or $40/tCO2e (tons of Carbon Dioxide Equivalent), however by 2030 the federal government plans on increasing that price to $170.
CARBON TAX PROJECTIONS
YEAR
$/TCO2E
Building
Building A Building B
Electricity
Usage
(KWH)
Electricity
Intensity
(KWH/SQ FT)
Natural
Gas Usage
(M3)
BUILDING
Building A Building B
Natural
Gas Intensity
(KWH/SQ FT)
Energy
Intensity
   
Benefits of Choosing Bex Systems
Bex provides building owners new windows for less than the cost of repairing the old windows. Building owners achieve energy savings, increased rental income and increased building value.
- ENERGY SAVINGS
- LANDLORD TENANT ACT COST RECOVERY
- RENT INCREASE UPON TURNOVER
- INCREASE IN BUILDING VALUE
- GOVERNMENT INCENTIVES
PROPOSAL
Bex will replace the buildings current single pane window systems with energy efficient dual pane LowE IGU glass, framed in State Window Corporation window systems.
Bex Systems is proposing to complete a window retrofit program at two Buildings:
SHERWOOD APARTMENTS
- 392 Sherbourne St, Toronto
PARKWAY FOREST
- 100 Parkway Forest, Toronto, Ontario
Completing Window Retrofits, will reduce energy costs, greenhouse gas emissions and provide tenant comfort, all the while providing a return on investment for our client and their investors.
The Bex Systems Financial Proforma
SHERWOOD APARTMENTS
SHERWOOD APARTMENTS
CAPITAL COSTS
$941,688
DEBT
$753,350
EQUITY
$188,338
OPERATING COSTS
AVERAGE NATURAL GAS SAVINGS OVER 30 YRS
$47,788
AVERAGE DIFFERED COST FOR WINDOW REFURBISHMENT
$10,349
AVERAGE ADDED REVENUE INCREASE FROM RENT
$38,653
AVERAGE TOTAL SAVINGS AND REVENUE
$96,790
LOAN REPAYMENT YEAR 1-25
$43,263
AVERAGE NET SAVINGS AND ADDED REVENUE OVER 30 YRS
$60,738
RETURNS ON INVESTMENT
30 YEAR RETURN ON INVESTMENT
$310,481
INCREASE IN VALUE YEAR 1 @ 4% CAP RATE
$597,076
INCREASE IN VALUE YEAR 10 @ 4% CAP RATE
$1,274,780
SUMMARY OF BEX SYSTEM BENEFITS
BEX SYSTEM WORKS WITH THE BEST-IN-CLASS WINDOW SYSTEM PROVIDERS, AND PROVIDE THEIR CLIENTS WITH:
- UPFRONT FINANCING OPPORTUNITIES THROUGH CANADIAN INFRASTRUCTURE BANK.
- NEW WINDOWS FOR A LESSER COST THAN REFURBISHING OLD STOCK WINDOWS. $426,012 IN SAVINGS OVER 30 YEARS.
- TOTAL NATURAL GAS SAVINGS OF CUBIC METERS 262,500 PER YEAR.
- CARBON TAX SAVINGS OF $25,699 IN YEAR ONE.
- CAPITAL COST IS $656,885 INCREASE IN BUILDING VALUE OF $2,244,078 IN YEAR ONE.
- IRR OF 19.9% AT SHERWOOD APARTMENTS AND 21.5% AT PARKWAY FOREST.
NEXT STEPS - THE BEX DELIVERY PROCESS
MEASURE
Bex will review existing site drawings, measure window sizes and calculate current energy loss.
ESITMATES
Bex will provide accurate replacement cost options and provide estimates towards energy savings derived from new window retrofit.
FINAL PROPOSAL
a. Bex will prepare the final proposal
for customer sign off. Bex will arrange
for installation from one of its
installer alliances.
b. Alternatively the client can recommend an installer.
INSTALLATION
Installation contractor completes the installation to the customers satisfaction.