CHICAGO—Walgreens is set to open the nation's first “net zero energy” store in Evanston, and Erik Kunz and Chris Leggee, vice president and assistant vice president of the Chicago office of NorthMarq, say the store's unique nature helped them secure $2.5 million in financing for the redevelopment of Southpoint Plaza, an Evanston retail center where the new Walgreens is scheduled to open in late November.

Construction began in March 2013. NorthMarq's financing provides for a ground lease at Southpoint Plaza, which will bring improvements to other buildings and common areas such as the parking lot. Southpoint, located at 635 Chicago Avenue, has eight other tenants, six of which have been at the property for more than 20 years.

“This deal was out of the ordinary and received significant national media attention, which helped in selling it to potential investors,” Leggee says.

Walgreens officials say they want the new store to serve as a centralized testing point for the company's sustainability agenda, and project it will produce more energy than it consumes. It will combine numerous green technologies including solar panels, wind turbines, geothermal technology, energy-efficient building materials, LED lighting and ultra-high-efficiency refrigeration. By 2020, the company wants to reduce its overall energy use by 20%.

“We are investing in developing a net-zero store so we can learn the best way to bring these features to our other stores,” Walgreens' Vice President of Facilities Thomas Connolly said earlier this year. “Because we operate 8,000 stores, we believe our pursuit of green technology can have a significant positive impact on the nation's environment.”

The net zero building replaces an older Walgreens located on the same lot. The builders used recycled brick and materials from the former store. Engineers have estimated the new store will use 200,000 kilowatt hours per year of electricity, while generating 256,000 kilowatt hours per year, meaning the store could actually sell back its extra energy to a local utility. Company officials also hope that the building will achieve Leadership in Energy & Environmental Design Platinum status from the US Green Building Council.

“Even though there's a high cost associated with LEED Platinum status, I think they are setting a standard for the future,” Leggee adds. “I think it's great Walgreens is doing this and that there's more LEED and sustainable development happening.”

Instant Insights /

NorthMarq Finances “Net Zero” Walgreens

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