Iconic Philly Met Uses C-PACE for Retroactive Financing of $6 Million for Energy Efficiency Investments
PHILADELPHIA, Nov. 23, 2020 /PRNewswire/ -- The Philadelphia Energy Authority, Enhanced Capital and EB Realty Management ("EBRM"), owners of The Met, announced today the financial close of the first project in Pennsylvania to retroactively use Commercial Property-Assessed Clean Energy (C-PACE) financing. EBRM is borrowing $6,000,000 in C-PACE financing from Enhanced Capital to pay for energy efficiency upgrades for the former Philadelphia Metropolitan Opera House, renovated in 2018.
Until the pandemic hit, "the reopening of The Met has provided an economic boost to the North Broad Street corridor, particularly neighboring restaurants, hotels and businesses," said Ian McCulley, Director at Enhanced Capital. "Using retroactive C-PACE was a great solution to strengthen the capital stack and repay some higher cost debt. Philadelphia allows retroactive financing up to two years after project completion, and it can be a useful tool for building owners looking to transition from construction to permanent financing."
"These are not easy times for any of us, especially for cultural institutions," said Emily Schapira, Executive Director of the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. "We are proud to provide a tool like C-PACE that can improve liquidity and reduce costs for commercial properties during this pandemic."
With this PACE financing, "we are one step closer to curating the North Broad Corridor of Philadelphia into a global example of successful impact development," said Christopher Cordaro, Vice President at EBRM.
In C-PACE lending in Pennsylvania, existing mortgage holders must consent to the C-PACE financing. In this case, both PIDC and Fulton Financial provided consent. Sue Lonergan, Fulton Bank's regional president for Southeastern Pennsylvania, said of the consent, "Fulton Bank has been a proud supporter of The Met project, and we've seen the positive impact this historic gem has had on the local economy and the community in general. It made sense to use C-PACE to help reduce the owner's monthly payments to get through this extraordinarily difficult time."
About the Philadelphia Energy Authority
The Philadelphia Energy Authority (PEA) is an independent municipal authority focused on energy affordability and sustainability. PEA has facilitated over $136 million in clean energy projects since launching the Philadelphia Energy Campaign in 2016, creating more than 1,300 jobs. PEA is Program Administrator of Philadelphia C-PACE. For more info on C-PACE, visit www.philadelphiaCPACE.org.
CONTACT: Lisa Shulock, 215-880-8298, [email protected]
SOURCE Philadelphia Energy Authority
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