Pennoni recently completed the energy model for the largest C-PACE project to date in Pennsylvania for BG Capital’s Freezpak Logistics in the Port Richmond neighborhood of Philadelphia, PA. On November 30, 2022, Nuveen Green Capital and the Philadelphia Energy Authority announced the closing of $30.08 million in C-PACE financing for the new construction of the industrial cold storage facility.
Recently awarded one of the Philadelphia Business Journal’s Best Real Estate Deals of 2022, this industrial cold-storage project located at 2201 East Allegheny Avenue brings the total amount of C-PACE dollars invested by private sector lenders to $100 million in Philadelphia. A true landmark in the program, which became active in late 2019.
So, what is C-PACE? It’s Commercial Property Assessed Clean Energy & Energy Efficiency projects. C-PACE is a financing tool that allows commercial and multi-family property owners to obtain financing for energy efficiency, water conservation, renewable energy, indoor air quality and resiliency projects, through private capital providers, and to repay the financing through a special assessment similar to a property tax assessment. C-PACE provides competitive long term (up to 30 years) fixed rate financing that can help commercial property owners save money while reducing their carbon footprint. Additional benefits include the ability to finance 100% of a project’s costs including design and architectural fees, permitting fees and more. One of the major benefits of C-PACE is that financing transfers with the property in the event of sale.
Currently, 37 states, plus the District of Columbia have C-PACE enabling legislation and more than $2 billion in projects have been financed in their active programming. C-PACE districts and programing have been established in 22 counties in Pennsylvania, including Philadelphia, with more pending.
Pennoni is one of the few qualified engineering professionals that meets the certification requirements as designated by C-PACE legislation. Our team can perform the necessary energy auditing and modeling, as well as indoor air quality and resiliency assessments.
Pennoni is currently working on additional C-PACE projects in the region and is excited to continue expanding and educating our clients on the benefits of this unique financing tool.
If you have a clean energy or efficiency project under consideration and would like more information on how C-Pace can be of benefit, please contact Liz McCormick.