Middle-Market is Greenwork’s Starting Point for Missouri C-PACE
Greenworks Lending closed its first Missouri Commercial PACE (C-PACE) project with the Missouri Clean Energy District this month. The property is a multi-tenant fitness facility called Warehouse 660, in Kirksville, where the property owner serves as the anchor tenant. The deal marks the initiation of a synchronized effort between the Missouri Clean Energy District (MCED), the administrative agency for the State, and Greenworks Lending to raise awareness of the C-PACE program among all commercial property classes.
The public/private program, C-PACE, is a growing capital source for energy saving and renewable energy improvements made by middle market commercial real estate owners and companies. To date, Missouri C-PACE has facilitated funding of $24 million. While there have been several large projects, 25% (or $6 million) in energy saving and renewable energy measures have been for investments smaller than $750,000.
“These are the types of measures often made by privately owned middle-market businesses,” stated Jessica Bailey, Co-founder and CEO of Greenworks Lending.
The Warehouse 660 project is for renewable energy: a 35 KW solar array at the 23,000 sq. ft. facility. Scott Williams, of Missouri-based Above All Energy projects the solar array to cover 57% of the facility’s energy needs and save $450 in energy expense per month over the first 20 years of the array’s useful life.
Greenworks Lending has originated C-PACE financing, better known as C-PACE assessments, in seven states across numerous industries and property types since its inception in 2015. The Missouri program with Greenworks, sponsored by the MCED, was launched in 2017.
“The purpose of the program is to help the state, our communities and the businesses that make Missouri a great place to work and live become as energy independent as possible,” explained David A. Pickerill, executive director of the MCED. “Of course, the program doesn’t work without strong economic incentive for the businesses who are enabled by C-PACE to secure long-term low-cost capital that allows them to improve (or build anew) infrastructure and lower operating expenses,” he continued.
“Our facility is more than just a fitness center. We want our staff, tenants and their clients to live long, healthy lives. For Warehouse 660, our solar installation is both a way to save on our electric bill and help the environment at the same time. Our tenants and their clients are excited about the project’s positive impact, it sends a good message,” explained Patrick Foglesong, owner of Warehouse 660. “We were eager to upgrade our building but the project doesn’t make sense if financed through conventional options. Greenworks Lending provided 100% financing through the C-PACE program and we’ll benefit from a long payback term at a fixed rate.”
Greenworks Lending, who recently made national news as the first capital provider to bring a purely commercial PACE securitization to market, is well positioned to provide capital to the emerging Missouri marketplace. In fact, the firm is nearing completion on a second Missouri project involving a full range of energy efficiency measures in the heart of Kansas City.
 Source: PaceNation.us