Co-authored by CounterpointeSRE and Baywater Properties
Connecticut has integrated Commercial Property Assessed Clean Energy (C-PACE) financing in commercial real estate for more than a decade; Yet many commercial owners, brokers, and lenders are still discovering how flexible and catalytic the financing can be. Today, C-PACE has evolved into a mainstream financing source for ground-up new construction, adaptive reuse, and renovations by making projects financially feasible while improving building energy performance and resiliency.
Why C-PACE Matters in Today’s Market
C-PACE allows commercial real estate investors access to long-term financing for 100% of all costs related to eligible energy efficiency, renewable energy, and resiliency improvements. This is done through a voluntary beneficial assessment levied by the local taxing authority. The structure provides fixed-rate non-recourse capital up to 25 years, aligned with the useful life of the improvements. Funded by private capital, typically from insurance companies, low-cost C-PACE can reduce upfront equity needs and weighted cost of capital and improve operational cash flows from day one.
“In today’s capital markets, predictable low-cost capital with tremendous structuring flexibility is everything,” said Michele Pitale, Managing Director at CounterpointeSRE. “C-PACE is an innovative and creative solution to fill financing gaps by offering low-cost funding that helps owners move projects forward that would otherwise not be feasible with a traditional capital stack.”
Ideal Property Types & Eligible Improvements
C-PACE is broadly applicable across Connecticut’s commercial landscape for adaptive reuse, repositioning, new construction as well as renovations. In the first ten years of the industry, hospitality, retail, and senior living sectors have been early adopters with exponential use by office, industrial and multifamily in the last two years.
Eligible improvements may include high-efficiency HVAC, controls, building envelope upgrades, LED lighting, low-flow water systems, solar PV, and battery storage. Resiliency measures such as site stormwater management and green roofs are also eligible. In new construction, C-PACE can often support a wide package of improvements that exceed code and improve long-term operating performance.
Case Study: The Corbin District, A Model for Modern Connecticut Development
Baywater Properties and CounterpointeSRE partnered to deliver one of Connecticut’s most ambitious mixed-use transformations: The Corbin District in downtown Darien. The development anchors a fresh new central district, a vibrant blend of retail, restaurants, offices, and community-oriented public spaces.
To support energy-efficient building systems and high-performance design, CounterpointeSRE sourced $165 Million of financing, including $63 Million of C-PACE and a $102 Million construction loan, working closely with Baywater to structure terms that complemented senior debt and equity.
“The Corbin District is about creating a place that reflects the future of downtown living,” said David Genovese, CEO of Baywater Properties. “C-PACE allowed us to invest in long-lasting, efficient systems that improve the daily experience for tenants and visitors while also making the project financially feasible. CounterpointeSRE was a true partner in helping us build a better, more resilient district for Darien.”
Pitale added: “This project demonstrates exactly how C-PACE can support visionary development. Baywater set a high bar in the complex’s design, and the C-PACE structure helped ensure those investments created long-term value.”
Contact CounterpointeSRE
CounterpointeSRE is one of the nation’s leading C-PACE capital providers and a long-standing financing partner with Connecticut Green Bank. We provide financing solutions based on comprehensive C-PACE expertise as one of the earliest and largest providers in the industry.
To discuss opportunities or request a project assessment, please contact inquiry@counterpointesre.com or visit Counterpointesre.com.
Contact Baywater Properties
Baywater Properties is a privately held, full-service commercial real estate company serving Fairfield County, Connecticut, and Westchester County, New York. Our operational and investment philosophy is centered on creating value for our partners – our tenants, our investors, and the communities within which we conduct our business.
To learn more about Baywater Properties, please visit https://baywater.net/