CounterpointeSRE, a respected leader in sustainable finance and one of the earliest C-PACE capital providers, is pleased to announce the closing of a Commercial Property Assessed Clean Energy (“C-PACE”) transaction to fund a heat pump installation at 304 West 89th Street, New York, NY. This transaction represents the first C-PACE in New York City for multifamily cooperatives and highlights CounterpointeSRE’s ability to create innovative financing solutions for a wide variety of asset classes.
The financing will support the building’s transition away from steam to electric heating through installation of mini-split and DHW heat pumps.
The measures financed by C-PACE are expected to bring the co-op into compliance with and below 2050 building emissions required by Local Law 97 (“LL97”), part of New York City’s Climate Mobilization Act. LL97 mandates significant reductions in carbon emissions from buildings over 25,000 sq. ft. with the goal of cutting citywide emissions by 80% by 2050.
“Closing the first-ever C-PACE transaction for a co-op in New York City is a real milestone for the multifamily real estate market,” said Michele Pitale, MD, Head of C-PACE and Healthcare Finance at CounterpointeSRE. “Co-ops have historically faced structural barriers to accessing long-term, low-cost capital for sustainability upgrades. This financing demonstrates that C-PACE can unlock a new pathway for these buildings in their approach to decarbonization and meeting mandates like LL97.”
The closing of this milestone transaction was aided by guidance from New York’s C-PACE program administrator, the New York City Energy Efficiency Corporation (NYCEEC), along with support from the Mayor’s Office of Climate and Environmental Justice (MOCEJ).
“This first New York City PACE transaction for a cooperative apartment building is an important milestone for the Program, demonstrating that PACE financing works for co-ops, benefiting building residents and advancing the City’s policy goals. NYCEEC congratulates Counterpointe on closing the first PACE loan, of what is expected to be many, for a cooperative building in New York City.” – NYCEEC
“Closing the first co-op C-PACE deal is a breakthrough for building decarbonization in New York City. Co-ops have been one of the hardest segments to finance, and this shows the barrier is not insurmountable. Unlocking this market is essential if we want these financing tools to reach beyond the segments that are already well served” – Ivy Trzebucki, Director Climate Financing Strategist, MOCEJ
About CounterpointeSRE
CounterpointeSRE operates at the intersection of commercial real estate and energy industries providing mortgage, C-PACE and other renewable energy financing strategies. As a portfolio company of MassMutual, our focus is to provide one-stop sustainable finance solutions to our commercial real estate owners/operators. For more information, please visit https://CounterpointeSRE.com.