C-PACE Financing Key Component of NMTC Financed Gut Rehabilitation
Amped Kitchens food production facility taps C-PACE to augment funding from NMTC with economic benefits and job creation for local community.
- Date: 26 March 2021
- Source: CounterpointeSRE
CounterpointeSRE closes $4.6 Million in C-PACE Financing with New Markets Tax Credits for Multi-Tenant Commercial Kitchen in North Chicago
Counterpointe Sustainable Real Estate (CounterpointeSRE) announced today that it has provided $4.6 million in Commercial Property Assessed Clean Energy (C-PACE) funding in support of completed energy-efficiency work at the recently opened Amped Kitchens Chicago facility on Chicago’s Northwest Side in the Belmont-Cragin neighborhood. The funding was provided through the Chicago PACE program.
The $4.6 million of C-PACE funding was applied with the consent of a consortium of New Markets Tax Credit (NMTC) program investors including Local Initiatives Support Corporation, Southside Community Redevelopment Enterprise, FirstPathway Partners, Consortium America, Chicago Community Loan Fund, Blue Hub Capital and PNC Bank.
“The opportunity to provide a significant capital infusion to this project and its development team is valuable in that it both supports the energy-efficiency choices made by the Amped Kitchens and helps keep costs down for those that operate their businesses from this facility,” stated Eric Alini, managing partner at CounterpointeSRE. “It’s a win for everyone involved because it demonstrates that Chicago PACE and C-PACE nationally sit at the nexus of sustainability and economic development as evidenced by the support of the NMTC investors,” Alini continued.
The PACE financing provided by CounterpointeSRE through the Chicago PACE program is earmarked to energy-efficiency improvements that included new HVAC and LED lighting. The HVAC improvements included upgraded systems such as ventilation that improve air quality for the tenants.
Amped Kitchens Chicago began its work in 2019 to convert a former Zenith television factory into a 113,000-square-foot facility with 64 kitchens for leasing to food manufacturers ranging from mom-and-pop operations to large corporate food manufacturers.
Previous reporting by Mark O’Meara in Novogradac captured sentiment towards the project including that of John Widmer, chief financial officer at FirstPathway Community Development LLC, an NMTC CDE based in Milwaukee.
“This is going to be a catalyst project for the Belmont Cragin area,” stated Widmer. “There used to be a lot of manufacturing companies here.”
The Chicago PACE program funding from Counterpointe helped Amped recoup the portion of our investment capital that we dedicated to achieving our energy efficiency goals.
What is PACE financing:
PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing for energy efficiency, sustainability and renewable energy infrastructure deployed in new or existing buildings. The program, available in more than 20 states and several cities, is based on legislation that classifies energy efficient and/or renewable upgrades as well as above-code new installations as a public benefit. These “green” infrastructure elements and associated soft costs (permitting, structural support, etc.) can be financed with no money down and are repaid through the property tax bill over a term that matches the useful life of improvements (often as long as 20-25 years).
About Counterpointe Sustainable Real Estate:
Counterpointe Sustainable Real Estate (CounterpointeSRE) is a leading commercial real estate finance provider specializing in sustainable infrastructure improvements through PACE financing.