Weathering the Storm:

  Financing Natural Disaster-Resilient Infrastructure 

As the rates of severe weather events increase, developers prioritize building resiliency as a preventative means of reducing risk of damage and to open financing options through lenders who prioritize sustainability. CounterpointeSRE provides a comprehensive collection of financial offerings to ensure business continuity in the wake of power outages and damages caused by severe weather events. 

Over the past decade, natural disasters such as hurricanes, tropical storms, fires, and the expansion of flood zones have directly impacted commercial real estate investors by inflicting unprecedented damage on the built environment.  In 2024 alone, there were 27 confirmed weather and climate disaster events with a rebuilding cost of $1 billion or more in combined insurance pay outs and government recovery funding. The damages to the built environment impact a diverse set of assets, and also come in many forms, the most detrimental being power outages and flooding. As time progresses, threats to the built environment are likely to increase as climate change accelerates, further harming business operations, also marking a shift in the necessity for building resiliency.   

Currently, hurricanes and tropical storms impact coastal businesses and residents, especially in major economic hubs such as New York, Boston and Miami. However, as sea levels rise and flood zone areas expand, Americans, regardless of geographic location, will likely encounter severe weather-related destruction to homes and business. Therefore, lenders now look to finance building resiliency measures that protect commercial real estate economic loss. By mitigating the threat of disasters on the built environment, owners and lenders simultaneously add long term value to their properties.  

Building Resiliency Measures

Common building resiliency measures are categorized into the three sectors: energy supply, resource conservation, and structural hardening.

    • Energy supply ensures that building operations continue in the wake of severe weather, typically through renewable energy systems, battery storage, backup generation, and electric vehicle charging.
    • Resource conservation aims to reduce energy and water demand while simultaneously increasing backup operating time through HVAC, water efficiency measures, and building envelope improvements.
    • Structural hardening mitigates seismic retrofits, wind-resistant roofs and windows, and flood mitigation in hopes of alleviating property damage, injury, and system outages.

Case Studies

Mortgage Bridge Loan and Structural Hardening

 

The Metro at Clearview is a newly completed 270-unit, Class A multifamily development located in Metairie, Louisiana. The design of the development considers the contextual location of Louisiana’s large flood zones, high annual levels of rain, and 142-mph wind zone, utilizing

  • An advanced drainage system which directs 85% of roof runoff externally
  • Building wall materials rated for 200-mph winds
  • Foundation elevated 2.4 feet above surrounding lots for flood protection
  • Multiple Best Management Practices implemented for stormwater management

Through the energy efficient and resilient design, the property also benefits by qualifying for $54.3 million of CounterpointeSRE bridge loan financing. This multifamily property demonstrates the long term value of mitigating damages from extreme weather events by implementing building resiliency.

Learn More: Copy of Metro Case Study 

ESSA Financing and Battery Energy Storage

 

A recent $78 Million dollar ESSA financing deal for a energy battery storage system in Kingman, Arizona will, 

  • stabilize grid capabilities for the surrounding military base and larger community
  • integrate alternative energy sources
  • support clean energy production and carbon reduction

This deal marks a newfound partnership between CounterpointeSRE and Ameresco.

Learn more: Ameresco Announces a $78 Million Facility to Finance Battery Storage Energy Asset :: Ameresco, Inc. (AMRC)

C-PACE Financing and Energy Conservation

The LaSalle Hotel, a 22-story boutique property in Chicago, Illinois, used $23.4 million in C-PACE financing to undergo energy improvement renovations. The energy measures and building resiliency upgrades come with the installation of,

 

  • new and efficient boilers, heaters and cooling systems
  • LED lighting
  • double pane windows

The prioritization of conserving energy in the Lasalle hotel targets building resiliency by conserving energy, improving infrastructure, and implementing systems that lessen the property’s carbon footprint.