The Smart City Quarter “Campagne-Areal” in Innsbruck involves the development of 16 new multi-apartment buildings in Passive House quality split in four project phases. The first phase, with four buildings, was completed and has been occupied since late 2022. These four buildings have 307 apartments along with various commercial and public facilities such as shops and kindergartens. The buildings are heated by a central heating system in a shared technical room, i.e., a groundwater heat pump supplies the space heating, and domestic hot water is provided by the district heating. A comprehensive monitoring system offers detailed insights into the operation of the HVAC system. Heat and electricity meters installed in the technical room, as well as heat meters installed throughout the distribution network, allow the calculation of distribution losses. A dynamic building model has been developed based on the design plans and calibrated by means of monitoring data. The building model includes the shared technical room and all the four buildings, each represented as one thermal zone. Furthermore, an HVAC model has been developed and calibrated, aiming to investigate the potential for optimization. The optimization focuses on improving the system design, as well as enhancing the control strategies. With improved operation the annual electricity demand of the heat pump can be reduced by 7.5% up to 15%. These findings aim to guide the design of the next project phases, supporting planners to pursue optimal design and functional solutions.