HVAC for Cost Segregation Professionals Presented by Steve

HVAC for Cost Segregation Professionals Presented by: Steve Nanos

Topics p What is HVAC? p What are the typical HVAC systems and components? p Which systems are typically found in different types of buildings and how to determine which systems were used? p What are typical HVAC system costs and why those costs can vary greatly from project to project.

Heat Transfer – “Transition of thermal energy from a hotter mass to a cooler mass” n Must be a temperature differential n Heat can be transferred by: Conduction / Convection / Radiation n Most HVAC heating & cooling is done indirectly n “There is no such thing as cold or cooling energy”

System Type – Small Terminal or Unitary PTAC VAV Box Standard RTU

System Type – Large or “Central” Air Cooled Chiller Water Cooled Chiller Cooling Tower Hot Water Boiler (Heating) or Hot Water Heater (Domestic HW)

System Type – Large or “Central” Air Handler Hot Water Boiler (Heating) or Hot Water Heater (Domestic HW) Central Plant Pumps Variable Frequency Drives (VFDs)

System Type – Exhaust & Make-Up Air Unit (MAU or MUA) Make-Up Air Unit Specialty Exhaust Std. Exhaust Fans

System Type – Central or Unitary Roof Top Packaged Unit or “RTU” 5 Ton to 150 Ton (2000 SF to 60, 000 SF) Per Unit

Low Rise RTU Systems

HVAC System Type – “Central” Central System Components Provide HVAC to Multiple Locations Throughout a Building 10

Chilled Water System

Water Source Heat Pump System

WSHP Schedule

Central Plant

Variable Refrigerant Flow System Distributes Refrigerant to Terminal Units Instead of Water or Air

Variable Refrigerant Flow System VRF Systems are becoming more and more widely used in all commercial applications (Offices/Schools) except industrial & distribution Costs are higher than most other systems but efficiencies can be very high.

How Do You Determine Which Type of HVAC Systems Were Used p Plans & Specifications n HVAC schedules list the type and, in some cases the quantities, of each component. n HVAC schedules also typically provide information critical to understanding the cost impacts that result from system options and upgrades. n The laid out manufacturer is a primary clue that the component costs might track your cost estimating program or that the costs could be considerably higher.

Mechanical Schedule

Why Notes and Manufacturer Matter (How Much Does a Car Cost? ) Assume 350 to 400 SF/Ton (Ton = 12, 000 BTU) p Std. 10 Ton Light Commercial (Home Depot / Warehouse) n p 10 Ton Semi-Custom Commercial (Mid-Rise Office) n p Cost $1, 000+/Ton & $20, 000 Installed 10 Ton Custom Unit (Clean Room / Pharmaceutical) n p Cost $500+/Ton & $8, 500 Installed Cost $10, 000+/Ton & $150, 000 Installed 100% O. A. may double the $/ton

Custom RTU or Air Handler Cost Factors p Thicker Walls with True Thermal Break Construction p Vestibules and Service Corridors p Stainless Steel & Epoxy Coatings & Liners p Explosion Proof p Sound Attenuation p Custom Sections (think circular, angles, heights, widths) p Extensive Filtration & Humidification p Extensive Controls p Often involve difficult installation/rigging

Custom RTU or Air Handler Example

Systems by Building Type p Hi-Rise Office (Similar to Hotel) n Water Cooled Chiller / Boiler / Cooling Tower / Pumps n Fan Coils for Guest Rooms n Air Handlers for Common Spaces n VFDs for AHU’s, Pumps, Cooling Tower Fans “OR” p Delete Chiller and Replace AHUs & Fan Coils with WSHP p Cost Factors n Inner City (Rigging & Labor) / Union / High Efficiency

Systems by Building Type p Low to Mid-Rise Office n Packaged RTU ”OR” n Air Cooled Chiller / Boiler / Pumps / AHU / Fan Coil n VFDs for AHU’s, Chillers / Pumps “OR” p Delete Chiller and Replace AHUs & Fan Coils with WSHP p Cost Factors n Inner City (Rigging & Labor) / Union / High Efficiency

Systems by Building Type p Hi-Rise Hotel n Water Cooled Chiller / Boiler / Cooling Tower / Pumps n Fan Coils for Guest Rooms n Air Handlers for Common Spaces n VFDs for AHU’s, Pumps, Cooling Tower Fans “OR” p Delete Chiller and Replace AHUs & Fan Coils with WSHP p Cost Factors n Inner City (Rigging & Labor) / Union / High Efficiency

Systems by Building Type p p Low-Rise Hotel n PTACs or PTHPs for Guest Rooms n PTACs or PTHPs or Packaged RTU for Common Spaces Cost Factors n High Efficiency costs / Union Labor ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) HVAC (Heating, Ventilation & Air Conditioning)

Systems by Building Type p Hi-Rise Apartments n WSHP / Boiler / Cooling Tower / Pumps n Vertical WSHP for Guest Rooms n Large WSHP for Common Spaces n VFDs Pumps, Cooling Tower Fans “OR” p Sometimes Chiller and Replace WSHPs with AHUs & Fan Coils. p Cost Factors n Inner City (Rigging & Labor) / Union / High Efficiency

Systems by Building Type p Mid-Rise Apartments n A. WSHP System p Vertical WSHP for Guest Rooms p Large WSHP for Common Spaces p VFDs Pumps, Cooling Tower Fans “OR” n p PTHP or PTAC with supplemental hot water/electric heat. Cost Factors n Inner City (Rigging & Labor) / Union / High Efficiency

Systems by Building Type p Low-Rise Hotel n p PTHP or PTAC with supplemental electric heat. Cost Factors n Union / High Efficiency

Systems by Building Type p Low-Rise Apartments n PTHP or PTAC with supplemental electric heat. “OR” n p Residential Split Systems (Generally more upscale units) Cost Factors n Union / High Efficiency

Systems by Building Type

Life Expectancy for Acquisitions

Questions & Answers

Walker Reid Strategies www. walkerreid. com Walker Reid Strategies, Inc. 8401 Lake Worth Rd. , Ste 103 Lake Worth, FL 33467 1 -800 -662 -179 D LAS VEGAS OFFICE Steve Nanos snanos@walkerreid. com (609) 306 -1326