Los Angeles Downtown Medical Center Taps C-PACE for $10.9 Million in Financing for Energy Efficiency and Water Conservation
C-PACE financing through CounterpointeSRE marks the growing use of PACE by healthcare facilities
GREENWICH, Conn., December 17, 2021 (Newswire.com) - The CounterpointeSRE Program announced today that it has closed $10.9 million in C-PACE (Commercial Property Assessed Clean Energy) financing for the LA Downtown Medical Center (LADMC) in Los Angeles, California, as the 116-bed acute care hospital and behavioral health center upgrades its facilities.
LAMDC's use of C-PACE marks a growing trend of acute care hospitals and other healthcare properties utilizing the program to finance measures designed to improve efficiency.
"This transaction marks the third hospital that CounterpointeSRE has helped finance improvements that reduce energy and water consumption in 2021 despite the financial pressures of the pandemic," stated Eric Alini, managing partner of CounterpointeSRE.
The energy efficiency projects being financed for the Los Angeles Downtown Medical Center (LADMC) medical campus include modernization of elevators, multiple HVAC energy efficiency projects, a new standby emergency generator as well as expansion of existing space to create a larger, upgraded Behavioral Health Center.
CounterpointeSRE is Program Administrator for the California Statewide Communities Development Authority (CSCDA), an organization founded in 1988 and sponsored by the League of California Cities and the California State Association of Counties to provide an effective tool for the financing of public benefit projects. Financing was provided through the issuance of a municipal bond through the CSCDA's Open PACE program with work being performed by B. R. Building Resources Company of Glendora, CA, general contractor and Registered Professional with the CounterpointeSRE Program.
PACE can play an important role in allowing an institution access to equity that had been previously used for capital expenditures as well as reducing operating costs through new projects that reduce utility expenses. C-PACE has drawn the attention of healthcare CFOs managing capital improvement budgets. CounterpointeSRE reports having provided $125 million in capital to healthcare properties since 2019. Beyond use by healthcare, PACENation reports over $2 billion invested in all commercial properties through PACE financing.
What is PACE financing:
PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing deployed for efficiency, resiliency and renewable energy infrastructure in new or existing buildings. The program is based on legislation that classifies certain efficiency and resiliency projects as a public benefit. These green infrastructure elements, along with all associated soft costs and related work, can be financed with no outlay of capital. The financing is repaid as an operating expense through the property tax bill over a term that matches the useful life of improvements, up to 30 years in many states.
About The Los Angeles Downtown Medical Center:
The Los Angeles Downtown Medical Center medical campus includes a 116-bed acute care hospital and behavioral health center serving Echo Park, Silver Lake and historic Filipino Town in downtown Los Angeles. The PACE-financed projects are expected to be completed in 2023.
In 2015, Counterpointe Sustainable Real Estate (CounterpointeSRE) joined CaliforniaFirst as the second PACE capital provider and program administrator for the California Statewide Communities Development Authority (CSCDA). Since this creation of CSCDA's OpenPACE program, CounterpointeSRE has led the way to upgrade California infrastructure through partnering with San Francisco Earthquake Safety Implementation Program (ESIP) to provide seismic retrofit financing for the City's mandatory soft-story retrofit program and through closing a $49.5 million of PACE in Los Angeles County that remains one of the largest PACE transactions in the nation. For more information, visit counterpointeSRE.com.
Counterpointe Sustainable Real Estate
Source: Counterpointe Sustainable Real Estate (SRE)