Open And Closing
COVID-19 disruptions lead to creative solutions to help projects move forward
- Date: 6 May 2020
- Source: CounterpointeSRE
With alot of help from our friends, our team has closed 9 transactions totaling $16.5 million since March 23rd
The disruption of business caused by COVID-19 is significant. We’ve seen that in minute-by-minute news coverage, financial market fluctuations and within our very own households. While we expect this unprecedented health crisis to continue for some time, Counterpointe Sustainable Real Estate is fortunate to be able to continue our work supporting energy-efficiency, renewable energy and resiliency projects in commercial buildings. We not only have capital, but we are actively deploying it for both new projects and retrofits. In fact, since March 23, when the S&P reached its recent low of 2300, the CounterpointeSRE team has closed 9 C-PACE transactions totaling $16.5 million.
“We not only have available capital, we’re deploying it into the commercial real estate market,” affirmed Managing Partner, Eric Alini. “The team has worked diligently to execute transactions and work through the recording issues that are inherent with any real estate transaction despite the need for physical distancing,” he continued.
In locations where CounterpointeSRE’s affilliate Counterpointe Energy Solutions is a program administrator, such as in Florida (FPFA program), and California (CSCDA Open PACE) and in Chicago (Chicago PACE), the team has been able to line up the digital resources necessary to close relatively quickly under current physical constraints.
“Digital recording isn’t new, but COVID-19 is forcing lenders to align resources, title companies and others that can work remotely with each program administrator,” explained one transaction manager for CounterpointeSRE. “For our recent transactions, we certainly owe a great deal of gratitude to James Hamill and the CSCDA team working with us.”
“Multifamily, offices and mixed use remain a strong focus for our retrofit business,” explained Alini. “New construction will continue to play a significant role in the generation of PACE assets, particularly where recently completed projects and projects that are already underway can extract capital for other sustainable and resiliency development projects,” he suggested. CounterpointeSRE’s closings since March 23rd include seven seismic retrofit projects in multifamily properties in Los Angeles and San Francisco. The funding supports work that can begin immediately, as the soft-story retrofit program and construction in these districts is considered essential. Ultimately the retrofits will protect 89 housing units. Seismic strengthening was also a component of a new construction financing for a multifamily mixed use property with 126 housing units, bringing the firm’s total to 215 housing units benefiting from C-PACE financing through recent transactions. A $394,000 C-PACE financing for a 160 KW renewable project at a mixed use office outside of Los Angeles rounds out the nine total completed since March 23.
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.
Counterpointe Sustainable Real Estate
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