Connecticut-based national lender boosts “Poway Outpost” capital stack to nearly 75% LTV by deploying PACE financing as a midstream capital solution amid COVID disruptions.
GREENWICH, Conn., November 2, 2020 (Newswire.com) – Counterpointe Sustainable Real Estate (CounterpointeSRE), announced today the closing of a $13.7 million Commercial Property Assessed Clean Energy (C-PACE) transaction for a mid-construction 53-unit Class AAA luxury multifamily and retail project in Poway, California, a San Diego suburb. The project, commonly known as the “Poway Outpost,” is also supported by a $21 million construction loan.
“This is a great example of C-PACE as a creative capital solution,” stated Adam Lipkin, Managing Director for CounterpointeSRE. “Yes, we’re supporting energy efficiency and resiliency, but the key is that we are able to move this project towards the finish line by bringing the total leverage to nearly 75%, and we’re doing that while the project is mid-construction.”
At completion, the Poway Outpost will consist of a mixed-use community with three buildings containing approximately 50,000 of net rentable residential space and 44,000 of retail space. The PACE-qualifying elements of the new construction project include seismic resiliency, HVAC, LED lighting, water conservation, and building envelope measures.
The inclusion of resiliency project elements in PACE policies generally expands the capacity for PACE in developers’ capital stacks. In this instance, California’s program administered by the CSCDA, provides for seismic strengthening, which represented approximately $8 million of the PACE value. CounterpointeSRE similarly provided $14.5 million in financing for a Los Angeles mixed-use multifamily in April and has financed dozens of seismic retrofits in the San Francisco market.
What is PACE financing:
PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing for energy efficiency, sustainability and renewable energy infrastructure deployed in new or existing buildings. The program, available in more than 20 states and several cities, is based on legislation that classifies energy efficient and/or renewable upgrades as well as above-code new installations as a public benefit. These “green” infrastructure elements and associated soft costs (permitting, structural support, etc.) can be financed with no money down and are repaid through the property tax bill over a term that matches the useful life of improvements (often as long as 20-25 years).
About Counterpointe Sustainable Real Estate:
Counterpointe Sustainable Real Estate (CounterpointeSRE) is a leading commercial real estate finance provider specializing in sustainable infrastructure improvements through PACE financing. For more information, visit counterpointesre.com.
Counterpointe Sustainable Real Estate
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Source: Counterpointe Sustainable Real Estate