This paper presents energy and environmental performance analyses, a study of summer indoor temperatures and occupant behavior for an eight story apartment building, with the goal to combine high energy efficiency with low environmental impact, at a reasonable cost. Southern Portvakten building is built with prefabricated timber elements using passive house principles in the North European climate. Energy performance was analyzed through parametric studies, as well as monitored energy data, and complemented with analysis of occupant behavior during one year. Results show that airtight, low-energy apartment buildings can be successfully built with prefabricated timber elements in a cold climate. The monitored total energy use was 47.6 kWh/m2, excluding household electricity (revised to a normal year), which is considerably lower than of a standard building built today in Sweden—90 kWh/m2. However, the occupancy level was low during the analyzed year, which affects the energy use compared to if the building had been fully occupied. Environmental analysis shows that the future challenges lie in lowering the household and common electricity use, as well as in improving the choices of materials. More focus should also lie on improving occupant behavior and finding smart solar shading solutions for apartment buildings.