Philadelphia Healthcare Campus Stays on Mission with PACE
- Date: 15 July 2021
- Source: CounterpointeSRE
Since its beginnings in the 1800’s, the Kirkbride Center has relied on a physical structure designed upon architectural theories that focused on light and air circulation to improve levels of patient care. Flash forward 200 years, and the behavioral health and residential services center is still investing in its physical environment, this time with a new financial tool for the Philly market: PACE.
C-PACE Financing to Improve Energy Efficiency at National Historic Landmark in Philadelphia
GREENWICH, CT (July 15, 2021) – 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 in West Philadelphia dedicated to providing behavioral health and residential services for those in need, in cooperation with CoreCare Systems, Inc. and the City of Philadelphia.
“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.”
With its 1800’s construction and architectural design based on theories in which environment, light and air circulation were essential to well-being, the Kirkbride Center is following tradition by improving its physical spaces to improve care, while also considering the environment and ESG objectives. The 390,000 square feet of living, healthcare and office space will benefit from an improved healing environment with a renovation of its boiler and chiller plants. Formerly the Institute of Pennsylvania Hospital, the main structure of the six-building campus is a designated National Historic Landmark.
HEALTHCARE IS ENERGY INTENSE
Healthcare accounts for 4.8% of the total area of commercial buildings in the United States are responsible for 10.3% of total energy consumption in this sector.
Source: Commercial Buildings Energy Consumption Survey (CBECS), U.S. Energy Information Administration. Available online (accessed on July 13, 2021, data released June 2016).
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.
While those receiving care and services at Kirkbride will benefit from the energy-saving improvements, 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 type of meaningful project is exactly how the program’s ability to attract private capital helps our community,” stated Maryrose Myretus, Program Manager at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE Program. “The funding for energy efficiency upgrades facilitates Kirkbride’s expansion while minimizing its energy use and the associated cost burden,” she continued.
Kirkbride Center History
The historic Kirkbride Building was placed on the National Register of Historic Places in 1966, the hospital was brought under new ownership in 1997 and renamed the Kirkbride Center in his honor. [more]
“This type of meaningful project is exactly how the program’s ability to attract private capital helps our community”
The Philadelphia C-PACE Program approved eligible improvements that will provide estimated annual CO2e savings of 736 tons and a reduction of 10,492 MBTu/year. The resulting efficiency is projected to yield $92,986 in annual utility savings. Impact of the project once completed 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 PACE financing without impacting credit rating and with no capital expenditure to upgrade equipment,” stated Michele Pitale, Managing Director at Counterpointe Sustainable Real Estate. “Our funding at Kirkbride demonstrates how 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 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 Washington Square’s Managing Principal, Garrett Miller.
Economic Development & Diversity
The General Contractor on the efficiency project, Falasca Mechanical, has an established policy to advance diversity and inclusion. To this date in the retrofit process, Falasca has already entered into subcontracts with three minority or female subcontractors: (i) COBRA electric, a WBE certified firm has been contracted by Falasca for a portion of this project; (ii) Ed-O Insulation Company, a WBE certified firm, and (iii) Rich Industrial Services, a WBE certified firm.
What is PACE financing:
Through the property tax mechanism and public-private partnership, PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing for energy efficiency, renewable energy and other resiliency infrastructure in new or existing buildings. These green infrastructure elements, all related work and associated soft costs can be financed with no capital expenditure and are repaid through the property tax bill up to a term of the useful life of improvements (often as long as 20-30 years).
About Counterpointe Sustainable Real Estate:
Counterpointe Sustainable Real Estate (CounterpointeSRE) is a respected leader in commercial PACE and a leading commercial real estate finance provider specializing in sustainable infrastructure improvements. 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.
For more information, visit counterpointesre.com.
“Facilities and institutions that operate for the common good can use commercial PACE financing with no capital expenditure to upgrade equipment and without impacting credit rating.”