CAMPBELL, Calif., Jan. 14, 2019 /PRNewswire/ -- K2 Clean Energy Capital, LLC, a leading developer of C-PACE (Commercial-PACE) financing projects, is pleased to announce the closing of a $10 million PACE transaction for a 102-unit multi-family housing development in Oakland, CA. This is the largest C-PACE funding for a new construction project in the multi-family sector reported to date by the national PACE organization (PACENation.us).
The development site at 1919 Market Street in Oakland, CA is within ½ mile of the city center and offers excellent access to transportation to San Francisco, the East Bay and the Southern Peninsula. The developer, oWow, specializes in building MacroUnits which are affordable-by-design homes for the people. The project will be comprised of 2-4 room highly-efficient live/work units enabling people to both live and have their own businesses in the same space and will feature flexible outdoor event space. The project is an extensive conversion of an existing commercial and industrial site with 70% new ground-up construction and 30% reuse and infill of the structural concrete frame. The PACE financing will fund multiple measures including roofing & insulation, HVAC systems, energy-efficient LED lighting, water efficiency, seismic measures and will contribute to the project goal of obtaining LEED Silver or Gold certification.
"We are excited to see how PACE provided almost 20% of the capital stack and reduced the overall cost of capital," said Stephen Tsu, co-founder and Managing Director of K2 Clean Energy Capital. "This project is an example of how developers can leverage PACE financing to improve their returns and take advantage of the non-recourse and off-balance sheet benefits of PACE. We introduced the debt provider and a number of PACE financing options to oWow as part of a complete project financing solution, and the developer ultimately selected Twain Financial Partners as the PACE capital source and Parkview Financial for the construction debt."
"Since we started on the 1919 Market project, construction costs have risen over 50%. While we could have given up or built expensive 1 bedroom lofts, we never gave up on the mission of building innovative below-market homes that enable locals to stay local, where families and individuals can not only live but self-sustain themselves by having their business in their home," said Danny Haber, CEO of oWow. "PACE financing was a critical part of this project's capital stack and enabled us to incorporate green technologies that will improve the energy efficiency of the building. K2 was involved from the beginning to maximize the available PACE funding for the project, obtain competitive terms, and accelerate the funding close."
"Our team thrives on providing affordable solutions to make tough projects succeed in this market," said Jeremy Harris, Director of Architecture at oWow. "PACE was a creative way to bring this project to life, allowing for us to afford the front-end costs of energy efficient measures, and ultimately transfer the savings to building and tenant sustainability over time."
What is PACE?
PACE, which stands for Property Assessed Clean Energy, is a simple and effective way to finance energy efficiency, renewable energy, and water conservation related measures in both building upgrade and new construction projects. C-PACE Financing is non-recourse and is secured through a special assessment on the property taxes. It can be used for almost any commercial property: commercial, industrial, multifamily, non-profit, and agricultural properties. PACE is a voluntary, free-market financing tool that promotes both energy-efficient building technologies and job creation through economic development.
About K2 Clean Energy Capital, LLC:
K2 Clean Energy Capital is a leading originator and developer of C-PACE facility upgrade and new construction projects with a focus on the multi-family, industrial, and hospitality industry sectors. The company is located in the San Francisco Bay Area and services clients primarily in the state of California as well as the Western US. For more information please visit: www.k2cleancap.com.
oWow is a Developer/Builder of MacroUnits and Live/Work MacroUnits which use design and technology to create affordable by design, homes for the people. For more information please visit: www.owow.com.
SOURCE K2 Clean Energy Capital, LLC