ROCKVILLE, Md., Oct. 12, 2016 /PRNewswire/ -- Recurrent, LLC announced today that the company has entered into an agreement with Rock Grove Associates LTD Partnership and has begun work to implement the first Commercial Property Assessed Clean Energy (C-PACE) financed energy efficiency project in Montgomery County, and in the entire State of Maryland.
C-PACE is an innovative and affordable way for commercial, industrial and nonprofit building owners to pay for energy upgrades. C-PACE financing covers 100% of project costs with no money down and is repaid through an assessment on the property. The structure makes energy upgrades accessible and allows owners to immediately increase net positive operating cash flow while increasing the value of the property. Maryland passed policy enabling C-PACE in May 2014 and Montgomery County passed an ordinance to enable its program in March 2015. "The goal of the C-PACE program is to increase the number of buildings that take advantage of this innovative program. We hope this is the first of many building owners in the county to take advantage of the C-PACE program," notes Genevieve Sherman, the Managing Director of PACE Financial Servicing.
This first C-PACE financed efficiency project will provide energy upgrades to the Comfort Inn Shady Grove and the adjacent Shady Grove Professional Building in Gaithersburg, MD. Built in 1986, The Comfort Inn Shady Grove will receive energy efficiency improvements that include new Energy Star rated HVAC systems, state of the art digital controls, LED lighting, and a new roof.
The project will not only reduce energy costs by 29%, but will also update the hotel and deliver better performance and improved comfort for guests at the property. The improvements to the Shady Grove Professional Building will reduce the energy costs for the office building by 38% with the installation of Energy Star rated HVAC units, LED lighting and boiler replacements, and improve tenant comfort. "We are fortunate to have worked with Recurrent and Greenworks Lending to be the first PACE efficiency project in Montgomery County and the state of Maryland. This arrangement allows us to materially improve our building's comfort, update the equipment to be more energy efficient, and significantly reduce our carbon footprint. In addition to the reduced energy usage and costs, we are also able to reduce the investment interest expense through the PACE Lending program, provided by Greenworks," remarked Bob Eisinger, Managing Member of ProMark Real Estate Services, LLC, and Agent of Rock Grove Associates LTD Partnership.
As an authorized Trade Ally for the Pepco Commercial & Industrial Energy Savings Program, Recurrent also received approval for energy rebates on behalf of the property owners, receiving a combined rebate amount of $91,500; $69,000 for the Shady Grove Professional Building and $22,500 for the Comfort Inn.
"It is great working with ownership groups like Rock Grove Associates LTD Partnership, who understand the strong financial returns delivered by energy efficiency investments. It is even better when we bring in C-PACE financing provided by Greenworks Lending, which underwrites 100% of the project costs so the owner has an instant positive cash flow with no upfront capital requirement. C-PACE financing is a very powerful and rewarding tool for Maryland property owners", says Keith Derrington, Chief Operating Officer at Recurrent.
John Stroud, Director of Business Development for Greenworks Lending adds, "Greenworks Lending is proud to have funded the first C-PACE project in Maryland. Working with a partner like Recurrent made the process easy because they understand the value that C-PACE brings to all their clients, including the owner of this project. We also enjoyed working with the forward-thinking management of United Bank to gain their lender consent. Implementing a C-PACE project in Maryland is straight forward and a great value for building owners, and we anticipate a significant increase in projects over the coming months based on the volume of applications we're currently processing". See more about Greenworks Lending here
The use of C-PACE financing is projected to create more than $475,000 in net positive cash flow to the property over the 20+ year useful life of the upgrades, in addition to a new roof for the Comfort Inn Shady Grove Hotel. The collective value of the two buildings is expected to increase appreciably for the owners of the property. All this will be accomplished with no up-front cost to either the owner or to Recurrent, as the project designer and constructor. See more about the Montgomery County C-PACE Program here
Recurrent, LLC, specializes in the development and delivery of building performance solutions and the ongoing operations, optimization, and maintenance of building systems and energy improvements in the Washington, DC metropolitan area, and throughout the State of Maryland. Recurrent is a leading provider of innovative C-PACE finance energy solutions. Learn more at www.recurrent.net
Read the press release from the Montgomery County Office of Public Information here
Press Contact: Leslie Mazzocco
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SOURCE Recurrent, LLC