DC PACE Funds Energy Upgrades For Ward 6 Condo
By Keith Loria March 16, 2023 4:43 pmreprints
DC Property Assessed Clean Energy (PACE) has joined forces with Stonehill PACE, an Atlanta-based C-PACE lender, to provide $5 million in financing to deliver energy efficiency and renewable energy upgrades to a condominium in the District’s Ward 6.
The financing for the building, a 122,500-square-foot condominium at 950 Third Street NW, will generate environmental benefits for both the building’s residents and the larger community. Cost savings are projected to be $6.7 million over 30 years, as the condo will use 1.4 million less kilowatt-hours of electricity and 3.4 million fewer gallons of water each year.
“This collaboration allows us to leverage lower-cost financing options and meet the increasing demand for clean energy solutions more efficiently,” Jared Schlosser, Stonehill’s senior vice president and head of Stonehill PACE, wrote in an email to Commercial Observer. “As we strive towards a cleaner future, we believe this is an exciting time for the growth of green finance.”
Community Three Development owns the 13-story condo, which is within the Mount Vernon Triangle master-planned development. The development comprises nine buildings and approximately 2 million square feet of office, residential and retail space.
Jonathan Seabolt of Clearwater Capital Management, arranged the $70 million capital stack for the construction, and FVCB was the senior lender.
C-PACE is a special financing option for projects that include renewable energy options such as solar power, green roofs and water-conservation systems, as well as upgrades like energy-efficient windows or HVAC units. The DC PACE program has facilitated loans totaling approximately $95 million since its first deal in 2013.
Just last week, DC PACE teamed with Forbright Bank to finance three new solar projects in D.C.’s Wards 2 and 3, totaling approximately $1.9 million. The projects are expected to generate energy savings of nearly 400,000 kilowatt-hours per year, eliminating greenhouse gas emissions that would be equivalent to burning over 313,000 pounds of coal.
Of those funds, $361,247 in financing will go toward 2501 Q Street NW, a four-story multifamily building in Ward 2; $884,345 will go toward 2122 Massachusetts Avenue NW, an eight-story apartment complex in Ward 2; and $655,292 is headed to 3130 Wisconsin Avenue NW, a nine-story apartment complex in Ward 3.
“The PACE program plays a crucial role in shaping the future of D.C., and this financing is another significant step towards a cleaner, greener, and more equitable city,” Ronald Hobson, DC PACE’s program manager, told CO.
Keith Loria can be reached at Kloria@commercialobserver.com.