LOS ANGELES, CALIF.—Structured Finance Associates, LLC announced the origination, structuring and funding of a PACE bond with Los Angeles County in the amount of $6,860,000 for the d2Dusit constance pasadena located in Pasadena, California.
“We are pleased to have the chance to work with the owners of the d2Dusit constance pasadena, K2 Clean Energy Capital, the County of Los Angeles, Sustento Group and PACENow to make this financing possible,” said Jean Dunn, CEO of Structured Finance Associates, LLC. “PACE financing for the d2Dusit constance pasadena is an example of the use of a new and valuable financing tool property owners can utilize in upgrading and/or the redevelopment of existing properties. We look forward to working with commercial property owners throughout the Los Angeles area to assist them in improving the value of their properties while creating jobs and improving our environment.”
The d2Dusit constance pasadena project is the renovation of the original Constance Hotel built in 1926. The PACE bonds issued provided long-term fixed rate financing for the installation of energy efficiency improvements including new HVAC and controllers, LED lighting, elevator motors and controls, window treatments, water systems, and insulation within the renovated hotel. These improvements are estimated to save 207,488 kWh per year in electricity usage and reduce water consumption by 3,200,000 gallons.
K2 Clean Energy Capital Assisted with Project
“The PACE financing provided a significant piece of the capitalization of the project, enabling the owners to take advantage of long-term fixed rate financing for energy efficiency improvements,” said Jonathan Pickering of K2 Clean Energy Capital, who were engaged by Singpoli Pacifica, LLC to develop the PACE project. “These improvements will allow the d2Dusit constance pasadena hotel to increase their operating cash flow and the corresponding value of the property.”
“PACE financing for the d2Dusit constance pasadena marks another significant step forward in the development of PACE within Los Angeles County,” said Howard Choy, General Manager of the Office of Sustainability for the County of Los Angeles. “We are pleased that Structured Finance is part of the Los Angeles County PACE program and look forward to working with them on additional projects.”
With the closing of the d2Dusit constance pasadena PACE bond, the total amount of PACE fundings initiated, structured and closed by Structured Finance Associates in Los Angeles County exceeds $14 million making Los Angeles County one of the largest commercial PACE programs in the United States.
Efficient Way to Finance Energy Improvements
“Financing, and specifically PACE financing, is a vital component in enabling commercial properties to implement the energy efficiency and renewable energy improvements advocated by Sustento Group and the Better Buildings Challenge,” said David Hodgins, President & CEO of Sustento Group, and Executive Director of the LA Better Buildings Challenge. “We congratulate Structured Finance on the d2Dusit constance pasadena and look forward to working with them on other projects in Los Angeles in the future.”
PACE (Property Assessed Clean Energy) is a unique financing vehicle offered by local governments in states with PACE enabled legislation. PACE allows property owners to finance 100 percent of the costs needed to make energy efficient upgrades or install renewable energy on their buildings. Currently, 31 states plus Washington D.C. have adopted PACE enabling legislation.
“The d2Dusit constance pasadena PACE financing is another step in the development of the PACE market,” said David Gabrielson, Executive Director of PACENow. “Structured Finance is a market leader in developing and financing large commercial energy efficiency and renewable energy projects. We are glad that their interest extends to many other PACE markets throughout the United States and we look forward to working with them in the future.”
Celtic Bank assisted Structured Finance Associates, LLC in the funding of the PACE bonds.