111 Wall St. Received $ 89 Million First C-PACE Urban Loan

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“Thanks to these improvements, 111 Wall St. will be well positioned to meet the demands of New York and attract today’s tenants looking to lease buildings with cutting edge green design and sustainability, ”said Michael Gontard, Chief Investment Officer, Wafra Capital Partners. …

The funding came from Petros as part of a larger $ 500 million loan package that the owners took to construct the building to add floor-to-ceiling windows. View smart glass windows, renovate the lobby, install new elevators, and add improved heating and air conditioning. systems.

The program loans, administered by New York City Energy Efficiency Corp., cover 100% of the project cost and are typically issued for 20 to 30 years. Loan payments are billed to landlords in installments through their property tax invoices. Any commercial or apartment building with three or more apartments, including tax-exempt non-profit and religious sites, healthcare facilities, and industrial sites, can apply for funding.

“Today I want to send a clear message to all building owners in our five boroughs: you have an important financial instrument to redesign your property for energy efficiency and sustainability,” said Mayor Bill de Blasio. “New Yorkers are counting on you to help us tackle the climate emergency by dramatically reducing carbon emissions from buildings.”

“This funding will transform the developer’s equity as we know it,” said real estate lawyer Juchting Patka. “This is a completely new source of finance for property owners. On the other hand, this is a completely new way for lenders to lend money to borrowers. “

Loans are already available for commercial real estate, including multi-unit real estate, in more than 35 states. California, Florida and Missouri also offer them to homeowners.

New York homeowners have been nervous about the implications of the city’s new energy standards, in particular the cost of efficiency changes and the penalties that many building owners are expected to receive from 2024 if they exceed the emission limits set by local Law 97 …

“The law damages large, dense office buildings,” said Durst Organization chairman Douglas Durst. Crain’s op-ed.

“Large buildings like One Bryant Park have densely populated living quarters that account for the vast majority of the building’s energy use,” Durst said. “Contrary to established environmental practices, city law punishes the most energy efficient and densely populated buildings and encourages sprawl of urban energy.”

Another major concern for property owners is how their lenders will respond to a clean energy loan, Patka said. But as the popularity of loans grows, she said, lenders will have to join the program or they will lose borrowers.

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