CounterpointeSRE Announces a $5.5 Million C-PACE Financing for a New Multifamily Development in Greater Minneapolis/St. Paul, Minnesota
CounterpointeSRE continues commitment to sustainable real estate finance during a time of economic disruption. The $5.5 million in PACE financing brings the firm’s total funding in the multifamily sector to greater than $20 million since mid-March 2020.
- Date: 22 June 2020
- Source: CounterpointeSRE
Counterpointe Sustainable Real Estate (CounterpointeSRE) announced today the closing of a Commercial Property Assessed Clean Energy (C-PACE) transaction for $5.5 million to support the development of a 227-unit apartment building in Edina, Minnesota. The project is being developed Dakota Pacific, a Salt Lake City, Utah-based firm, and Florida-based Luxe Residential, which is part of DLC Residential.
Located seven miles southwest of Minneapolis at 3250 West 66th Street, the six-story multifamily development named the “Millennium Sixty Six” will feature 227 units. Enhanced and upgraded sustainability features, which qualify the project for PACE financing, are projected to reduce electricity consumption by 3,150 Mwhs, with greenhouse gas emissions reduction estimated at 2,538 MTCO2e per year. The property is targeted for completion in July of 2021.
The $5.5 million in C-PACE funding for Millennium Sixty Six will be used to directly support energy-efficient infrastructure investments including building envelope, interior lighting (LEDs), HVAC, low-flow fixtures and high-efficiency DHW.
“The PACE financing allows our team to make the best long-term decisions possible for our future residents,” stated Lane Critchfield, Managing Director of Dakota Pacific Real Estate. “The low-cost capital allows us to invest in infrastructure that will reduce our carbon footprint and, more tangibly, everyone’s utility bills without a compromise to the luxury experience we are creating at Millennium Sixty Six.”
“This project is an excellent example of the potential for PACE financing to play a role in the multifamily sector, whether the projects are new developments or retrofits,” stated Eric Alini, Managing Partner of Counterpointe Sustainable Real Estate. “We are grateful to the team at MinnPACE for working with us from the administrator side of the transaction so that we are able to continue to provide capital nationally, despite the economic slowdown brought forth by the COVID-19 public health crisis.”
The transaction marked CounterpointeSRE’s first completed deal in the State of Minnesota. The firm has provided more than $50 million in PACE financing since the onset of stay-at-home protocols throughout the nation in mid-March. Alini additionally affirmed that CounterpointeSRE would continue to fund energy-saving projects during the current period of economic disruption.
This project is an excellent example of the potential for PACE financing to play a role in the multifamily sector, whether the projects are new developments or retrofits
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.