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Gut rehabilitation project for office property becomes largest C-PACE transaction ever closed in Frederick County | Maryland Commercial PACE

 

FOR IMMEDIATE RELEASE

April 12, 2021

 

The MD-PACE program is pleased to announce the closing of $2.4M in Commercial Property Assessed Clean Energy (C-PACE) financing for VaLogic, a biotech company that owns and will be headquartered at 7495 New Horizon Way, Frederick, Maryland. VaLogic will use the multimillion dollar C-PACE financing to enhance their new headquarters and improve the building for their office space, and future biotech and life science tenants, who will occupy the first floor of the property. The C-PACE loan is the largest of its kind for a project in Frederick County to date. Jason Schwartzberg, President of MD Energy Advisors, sourced the C-PACE financing on behalf of VaLogic. The C-PACE loan was originated by Greenwork Lending’s Mid-Atlantic Director, Michael Billingsley based in Bethesda, Maryland. Greenworks Lending is one of the largest C-PACE capital providers in the country and is headquartered in Darien, Connecticut.

 

7495 New Horizon Way, is a two-story, 75,000 square foot flex commercial property that is part of the Frederick Corporate Park. Frederick Corporate Park is immediately adjacent to MD Routes 85 and 355 and is within close proximity to Interstates 70 and 27. The office park is approximately a half-mile from the Francis Scott Key Mall and Riverview Plaza which offer a variety of retail and dining options. 7495 New Horizon Way will undergo upgrades to make the current flex commercial space into the owner’s vision for the structure; a hub for biotech and life science office and lab space. The $2.4M of C-PACE financing in this transaction will help to further this transformation by providing funds to upgrade the property with high efficiency HVAC unit replacements, high efficiency lighting replacements, and new roof components and insulation. The efficiency improvements have a long estimated useful life enabling the C-PACE financing to provide a 20-year term and amortization, and will net a financial return of 1.28 times the investment, according to technical experts.

 

Michael Billingsley, Mid-Atlantic Director for Greenworks Lending, said of the 7495 New Horizon Way closing:

“Greenworks Lending is pleased to partner with and provide financing to VaLogic’s new headquarters at 7495 New Horizon Way. We are excited that the energy efficient improvements will contribute to improving a formerly vacant building and converting its use into a thriving new office space for VaLogic, and new biotech and life science lab spaces for several companies. The closing of 7495 New Horizon Way continues to demonstrate the positive impact C-PACE  financing can have on a wide variety of property  types. Greenworks Lending is proud to help create high-quality work environments in the Frederick County area.”

 

In 2021, the owners of commercial office space like 7495 New Horizon Way will need to adapt to the gradual re-integration of workers. Some experts say that ensuring that office space is exciting and engaging to workers will be of great importance, while others say that having flexibility in layout will be desirable to employees returning from remote work. Attractiveness to workers is not the only trend that should impact decisions being made by office real estate owners: an informational resource published by the Urban Land Institute and partners in 2020 indicates that energy efficiency and net operating income should also be a factor when making office upgrades. C-PACE is one financing tool that can be used by property owners in order to make these efficiency improvements. C-PACE does not require an upfront capital investment by the property owner, has repayment terms as long as twenty-five years, and can be prepaid at any time or can transfer upon sale of the property, benefitting owners who need flexibility.

 

The MD-PACE program encourages all commercial property owners and developers with interest in accessing C-PACE financing or investing in high-efficiency improvements to contact info@pacefinancialservicing.com.

 

 

About the MD-PACE Program

The MD-PACE Program is sponsored by the Maryland Clean Energy Center (MCEC), a corporate instrumentality of the state of Maryland which advances the adoption of clean energy, energy efficiency products, services and technologies. MCEC leverages private capital to help homeowners, businesses, and government entities reduce energy costs. The MD-PACE program offers C-PACE financing to commercial property owners statewide.