PACE Equity, a provider of funding C-PACE commercial real estate development since 2014, announced that the Vortex Cold Storage facility it helped finance has been named Environmental Impact Deal of the Year by C-PACE Alliance. The award recognizes the innovative, environmentally friendly refrigeration technology used in the company’s warehouse in Alberta Lea, Minn., which was financed with low-cost C-PACE capital from PACE Equity.
PACE Equity Founder and President Beau Engman explained that developers can use the C-PACE program, a legislated public/private partnership available in more than 30 states, to reduce the financing cost for aspects of new projects and renovations that meet specific energy or water conservation criteria.
“The Vortex Cold Storage Facility is a great example of how a progressive and dynamic company can tap advantageous C-PACE funding to reduce its cost of capital and its carbon footprint,” says Engman. “With interest rates climbing, a low cost of capital is more vital than ever and C-PACE is a compelling solution to reduce the weighted average cost of capital for many projects. Beyond that, we offer a way to reduce their capital costs even further by using PACE Equity’s new CIRRUS Low Carbon funding.” The CIRRUS Low Carbon program offers reduced finance rates when clients build to an energy efficient specification that PACE Equity created along with the New Buildings Institute.
With regard to the Environmental Impact Award, Vortex Cold Storage principal Connor Wray says: “In addition to being capital intensive, cold storage is energy intensive, so the case for more efficient refrigeration equipment was very convincing. We were happy to get creative with our capital partners, including PACE Equity, who we knew to be a leading provider of C-PACE funding.”