CleanFund Commercial PACE Capital, Inc. (www.CleanFund.com), the leading direct provider of commercial Property Assessed Clean Energy ("C-PACE") financing, announced that they have completed their first transaction in Colorado, opening up a new source of capital to finance energy efficiency, solar energy and many other building improvements throughout the state.
CleanFund provides capital to finance up to 100% of project's cost using the C-PACE framework, which has been adopted in 33 states and the District of Columbia. This allows property owners to repay investments for qualified building upgrades and new construction as a line item on their regular property tax bills.
In Colorado, much of the demand for sustainable buildings comes from building owners and their tenants. Developers know that "green buildings" drive higher rents and economic growth; however, the traditional lending market has been unable to keep pace with these demands. CleanFund's PACEDirect financing product now available in Colorado enables local owners and developers to have access to fixed rate, long-term, non-recourse capital that can transfer to the new owners when the building is sold.
For the company's first project in Colorado, CleanFund provided $296,000 in proceeds to retrofit an existing 9,616 square-foot suburban office building in Boulder. The proceeds will be used for the installation of LED lighting, a new HVAC and control system, electric vehicle charging stations, roof replacement, and a roof-mounted solar array.
CleanFund partnered with Energesco Solutions, whose expertise in sustainable building solutions helped to develop the project. Both the developers and the owner, Boulder-based digital marketing and social media agency Room 214, saw C-PACE as the perfect solution to raising funds for the improvements that will significantly reduce the building's energy consumption and lower energy expenses.
"We are grateful to our partners at Energesco Solutions for the great work they did for making this transaction move along efficiently. We are also appreciative of Keely and the team at Room 214 for being responsive and supportive." said Joshua Kagan, Vice President of Business Development at CleanFund.
"We're excited to close our first PACE transaction with CleanFund, the leading direct provider of C-PACE," said Jamie Lang, a partner at Energesco Solutions. "With CleanFund's innovative financing solution, we are now able to offer powerful turnkey solutions to commercial property owners."
CleanFund worked closely with the Colorado New Energy Improvement District, the program sponsor, and Sustainable Real Estate Solutions (SRS), which administers the Colorado C-PACE program, to complete the transaction. After completing projects in California, Connecticut, Missouri, Minnesota, Texas, and now Colorado, CleanFund has become an industry leader in providing guidance and feedback to help C-PACE programs grow and develop.
CleanFund Commercial PACE Capital is the leading direct provider of long-term financing for energy efficiency, water conservation, renewable energy and seismic improvements to commercial, multifamily and other nonresidential properties in the U.S. With significant expertise in commercial real estate, finance, renewable energy and PACE policy, CleanFund offers PACEDirect and SolarPACE financing programs, which enable property owners to upgrade their properties with no up-front cost, increasing property cash flows and value.