FOR IMMEDIATE RELEASE
January 14th, 2021
The MD-PACE Program is pleased to announce the closing of the largest C-PACE financing in Baltimore County to date, the rehabilitation of an existing warehouse in Pikesville, Maryland to develop a state-of-the-art self-storage facility.
This transaction represents the second use of C-PACE financing for a storage or warehouse property in the Maryland PACE Program. As self-storage facilities grow in number across the nation, it is imperative that these spaces do so with efficiency, sustainability, and cost-effectiveness. Through energy efficiency and clean energy improvements, storage space can scale at a quicker rate, be more cost effective, and increase resilience to grid cutoff or disaster events; this is particularly relevant to cold-storage or storage space that must maintain climatic equilibrium for fragile products.
Garver Development, the project sponsor, wanted a low-cost financing alternative to partner with their senior construction lender, Sandy Spring Bank. C-PACE will fund a wide range of energy and water efficiency measures, including several building envelope improvements, new elevators, HVAC systems with efficiency controls, plumbing systems, and a 176kW solar PV system. These improvements will create greater efficiency and on-site energy production for a property type that typically has higher energy use compared to other commercial properties.
Greenworks Lending LLC, a Connecticut-based specialty C-PACE lender with a local office in Bethesda, MD closed this project worth nearly $3M in C-PACE financing. This marks the latest of many successful C-PACE projects completed by Greenworks.
Michael Billingsley, Mid-Atlantic Director for Greenworks Lending, stated that the “Pikesville Self-Storage development illustrates the growing application of C-PACE for large-scale rehabilitation projects. We appreciate the collaborative partnership between all parties to successfully fund this transaction.”
Warehouse and other storage space constitute one of the fastest-growing commercial property types in the United States. Between 2003 and 2012, warehouse space grew 33% nationally, more than any other usage; at the end of this time period, warehouse and storage affiliated properties expanded to 15% of the total building stock and nearly that of overall commercial floorspace. Storage properties are therefore a large and important subsection of the national property stock. The 24/7 demand for lighting and climate control in storage facilities means that energy efficiency improvements could create substantial savings.
C-PACE is an affordable, fixed-rate, non-recourse financing alternative to mezzanine or preferred equity, which can fund energy and water efficiency improvements for commercial properties. C-PACE also allows savings from these measures to be realized immediately, as repayment is spread over the weighted expected life of the equipment. Additionally, C-PACE financing can transfer on title or be fully prepaid in the event of an ownership transfer, creating flexibility for both current and prospective owners.
The MD-PACE program encourages all commercial property owners with interest in saving money through C-PACE or investing in high-efficiency improvements to contact email@example.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.
About Greenworks Lending:
Greenworks Lending is the largest provider of Commercial Property Assessed Clean Energy (C-PACE) financing in the country. Led by several of the industry’s founding policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial real estate through C-PACE. Greenworks has provided financing to hundreds of commercial properties and is active in 25 states. Greenworks Lending’s C-PACE financing makes clean energy a smart financial decision for commercial property owners.