First PACE Loan Issued in New York to Help Building Owners Achieve Low Cost Carbon Emissions Targets

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June 16, 2021

NEW YORK– Mayor Bill de Blasio today announced the closure of a $ 89 million loan to 111 Wall Street through NYC Accelerator PACE Funding Program remodel 900,000 square feet of office space to improve efficiency, resiliency and local compliance. The project is expected to save $ 2.5 million in annual energy costs and avoid $ 750,000 in annual fines starting in 2030.

This innovative program, implemented by the City of New York Energy Efficiency Corporation (NYCEEC) on behalf of the city, will help property owners achieve the city’s ambitious carbon goals under the Climate Mobilization Act by providing access to affordable, long-term capital. to improve energy efficiency and modernize renewable energy sources.

“If you can upgrade a building in New York, you can do it anywhere,” said Mayor Bill de Blasio… “Today, I want to make it clear to all building owners in our five boroughs that you have an important financial instrument to redesign your property to improve energy efficiency and sustainability. New Yorkers are counting on you to help us tackle the climate emergency by dramatically reducing carbon emissions from buildings. ”

“It’s not just building owners who are fighting climate change,” he said. Ben Furnas, City Hall Director for Climate and Sustainable Development… “The NYC Accelerator PACE Funding Program is an essential tool for decarbonising buildings at scale while shifting the burden of costs away from property owners. Our team and partners at NYCEEC are committed to helping building owners and lenders finance clean energy projects, reduce operating costs and comply with local regulations while reducing carbon emissions and improving tenant comfort. ”

By 2030, the program is projected to create 689 green jobs and reduce CO2 emissions by 447,600 metric tons, equivalent to the decommissioning of 97,344 passenger cars in a year.

The loan allows building owners to finance up to 100% of the project cost. Unlike regular financing, loans provided through the NYC Accelerator PACE Financing Program are repayable in installments by paying a fee to the property tax account. Loans are sized according to projected reductions in energy costs, so building owners can start saving from day one.

The program is open to any commercial or multi-unit building with three or more apartments, including tax-exempt non-commercial and religious sites, healthcare facilities, and industrial sites that meet the requirements and criteria.

NYC Accelerator Performance Consultants can help building owners contact qualified lenders seeking PACE financing. Financial Institutions Seeking PACE Loans May Respond to Lender’s Prequalification Request for Qualification

“The climate challenges our city will face in the coming years are discouraging, so we must continue to be proactive to help New York property owners reduce greenhouse gas emissions from their buildings,” said Construction Commissioner Melanie E. La Rocca… “Today’s announcement shows that PACE funding remains a key element in launching energy efficiency projects across our city’s entire housing stock.”

“Improving the energy efficiency of buildings throughout the city is of paramount importance in the ongoing efforts to decarbonize wherever possible to combat climate change,” said Sheriff Soliman, Commissioner of the New York City Department of Finance… “The NYC Accelerator PACE Financing Program is a creative way to help New York City property owners reduce their carbon footprint by modernizing the energy system, and the Department of Finance is pleased to be involved in funding mechanisms to facilitate the payment of loans through property tax bills. “

“New York has always been defined by its buildings, from tall skyscrapers to iconic brownstone houses,” he said. Jaini Bavishi, City Hall Director of Climate Resilience… “To cope with the ongoing climate crisis, we are working to ensure that all New Yorkers have effective, sustainable and resilient places to live and work. PACE funding is a proven tool to help building owners reduce their emissions. Now lawmakers in Albany must expand the program to allow it to fund climate change adaptation upgrades such as flood protection and back-up power systems. ”

“The refurbishment of 111 Wall Street is particularly exciting as New Yorkers return to work and visitors return to the financial district,” he said. Fred Lee, NYCEEC Co-CEO… “PACE has enabled the development team to access additional capital through investment in durable energy efficient systems, so the project is part of the city’s recovery from the pandemic and the transition to energy supply.”

“There is something special about this being the first C-PACE transaction to be completed in the Big Apple,” he said. Mansur Gori, CEO of Petros PACE Finance… “The fact that the first transaction broke the record for the largest C-PACE transaction ever closed is a testament to the city’s potential for C-PACE, and the wisdom of the mayor and city leadership on climate change. We thank the City Hall, especially the Climate and Sustainable Development Department for supporting this project, and NYCEEC for their amazing partnership in this process to open up this market. ”

“With these improvements, 111 Wall Street will be well positioned to meet the demands of New York and attract today’s tenants looking to lease buildings with sustainable design and sustainability,” he said. Michael Gontar, Chief Investment Officer, Wafra Capital Partners… “We chose to work with Petros because of their best practices and execution capabilities, which gives us the confidence to complete a C-PACE transaction of this size.”
“PACENation is pleased to welcome New York to the global community of cities and counties that have adopted PACE as a financing option for property owners,” said PACENation Executive Director Colin Bishopp… “Over the past decade, PACE funding has proven to be an outstanding policy tool for creating local jobs, reducing carbon emissions and building resilience to extreme weather. With PACE in his thrill, New York City buildings will become healthier, more efficient, and better quality. Safely. Congratulations to everyone involved in the inaugural project at 111 Wall Street. “

“The PACE program in New York is a game changer for commercial property owners looking to modernize their property while saving energy and utility costs.” said Cliff Kellogg, C-PACE Alliance CEO… “PACE’s commercial funding is entirely privately funded and can fill a funding gap at a lower cost than many alternatives. We congratulate the City and NYCEEC for providing this alternative financing to the Big Apple, the largest commercial real estate market in the country. “

“New York continues to lead by example in overcoming our climate crisis,” he said. Richard Yancey, FAIA, Executive Director, Building Energy Exchange… “Funding PACE will provide building owners with a critical vehicle for long-term investment in modernization that will pave the way for significant carbon savings and energy savings while creating healthier places to work and live.”

“We are very pleased to see the deployment of PACE in New York. It is an important tool for financing the necessary decarbonization of buildings to achieve our climate policy goals and promote environmental restoration, ”said John Mandick, CEO of the Urban Green Council.

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