$4.33 Million to Improve Energy Efficiency in Philadelphia
Historic medical and social services center utilizes C-PACE to improve energy infrastructure and meet ESG goals through Philadelphia C-PACE program and Counterpointe Sustainable Real Estate.
- Date: 3 August 2021
- Source: CounterpointeSRE
CounterpointeSRE Provides $4.33 Million in C-PACE Financing to Improve Energy Efficiency at National Historic Landmark, the Kirkbride Center in Philadelphia
CounterpointeSRE (Counterpointe Sustainable Real Estate) announced today that it has closed $4.33 million in Commercial Property Assessed Clean Energy (C-PACE) financing for the Kirkbride Center, a 17-acre healthcare and social service campus with a National Historic Landmark status owned by CoreCare Systems, Inc. in West Philadelphia dedicated to providing behavioral health and residential services for those in need.
“We have a responsibility and desire to provide the best possible healing environment,” stated John Fleming, director of the Kirkbride Center. “PACE financing through CounterpointeSRE is helping us keep our facilities up to date and operating efficiently which provides a foundation for us to help those in need of our collective services.”
Through C-PACE financing, the Kirkbride Center’s 390,000 square feet of living, healthcare and office space will benefit from an improved healing environment with upgrades to its chillers and boiler plant. The investment in energy efficiency also benefits the community through reduced greenhouse gas emissions and a commitment by the owners to use community-based minority-owned contractors to complete the work.
“This meaningful project illustrates the program’s ability to attract private capital to help our community,” stated Matt Stern, Senior Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE Program. “The funding for energy efficiency upgrades supports Kirkbride’s healing environment while minimizing its energy use and the associated cost burden,” he continued.
The Philadelphia C-PACE Program approved eligible improvements that will provide an estimated annual CO2e savings of 668 metric tons and a reduction of 10,492 MBTu/year. The resulting efficiency is projected to yield $92,986 in annual utility savings. The impact of the project will be tracked through EnergyStar portfolio manager, an interactive resource management tool that benchmarks energy use for nearly 25% of U.S. commercial building space.
“Facilities that operate for the common good such as healthcare and universities can use C-PACE financing without impacting credit rating and with no capital expenditure to upgrade equipment,” stated Michele Pitale, Managing Director at CounterpointeSRE. “Kirkbride demonstrates how C-PACE can help facilitate positive environmental impact and help corporations meet ESG goals, especially by large power and water users with complex infrastructure and commercial real estate needs,” Dr. Pitale continued.
The Kirkbride Center was advised of the C-PACE program and available financing by Washington Square Realty Capital, who recognized Counterpointe’s expertise in deploying C-PACE for healthcare clients.
“Counterpointe has provided funding of greater than $100 million in C-PACE assessments for healthcare organizations over the past two years, so they are the top solution in our mind,” stated Managing Principal, Garrett Miller.
About the Kirkbride Center:
CoreCare Behavioral acquired the property in 1997 to reestablish the center as a healthcare resource for the community. Now, after years of dedicated efforts to fulfill a mission of serving the public good, the owners have revitalized the campus, which houses educational services and provides drug and alcohol rehabilitation (CoreCare Behavioral Health Management, Inc.), a family homeless shelter (Traveler’s Aid), women’s shelter services (City of Philadelphia) and food services for patients and residents.
Facilities that operate for the common good such as healthcare and universities can use C-PACE financing without impacting credit rating and with no capital expenditure to upgrade equipment
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. Since 2013, Counterpointe and its affiliates have financed commercial real estate construction and upgrades that have reduced annual electricity consumption by greater than 51,000 MWh per year and reduced water consumption by 23 million gallons per year