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Irvington, NY 10533
CastleGreen Finance and X-Caliber are pleased to provide a series of case studies that demonstrate versatile, innovative, and efficient capital solutions for property owners.
This highlighted transaction focuses on an execution using Commercial Property Assessed Clean Energy (C-PACE), a low-cost, long-term financing structure repaid via a tax assessment. C-PACE is available for building, construction, and renovation projects, and can help property owners achieve lower future operating costs through sustainable energy efficient solutions.
The Property:
For 135 years, the Sisters of St. Joseph of Chambéry occupied a convent on Park Road in West Hartford, Connecticut. The historic property was outdated and needed revitalization. The Sisters required retirement security while preserving their history, and the property needed a sustainable transformation to meet modern energy efficiency standards.
Solution:
CastleGreen Finance, in partnership with Lexington Partners LLC and the Connecticut Green Bank, facilitated a $13.7 million Commercial Property Assessed Clean Energy (C-PACE) transaction as part of a comprehensive redevelopment project that would serve multiple purposes:
- Redevelopment: One Park Road underwent a transformative redevelopment into a 292-unit multi-family housing complex on a 22-acre property. A historic wing of the convent was preserved, while the remaining space was renovated into studio, one-, two-, and three-bedroom apartments. The project consists of 157 one-bedroom apartments, of which three have lofts and 24 have dens, along with 41 two-bedroom and four three-bedroom units. A new four-story building over a one-story parking deck was constructed, maintaining the property’s aesthetic, and historic qualities while creating a neighborhood feel.
- Energy Efficiency: C-PACE financing enabled the implementation of clean energy and energy efficiency upgrades, making the property more environmentally sustainable and cost-effective in the long term.
Borrower Benefits:
C-PACE financing provided Lexington Partners with a creative and affordable financing solution to help bring the $70 million redevelopment project to fruition.
The financing provides long-term, low-cost financing, enabling significant energy improvement upgrades and creating impactful energy savings over the life of the financing.
The project is designed to save 31.1% in total energy costs and use 16.1% less energy compared to baseline state building codes.
It is projected to save $240,200 in energy costs in the first year and an impressive $6MM over 25 years, contributing to long-term financial sustainability.
At a Glance
“We needed creative financing in our capital stack to help bring this project to fruition. The CastleGreen team presented a compelling financing solution and delivered on time and as promised.”
*Reflects estimated savings to be achieved by the design.
For the Environment:
- Energy Efficiency: The project embraced clean and sustainable energy efficiency measures, reducing the property’s environmental footprint, and contributing to a more sustainable future.
- Lower Carbon Emissions: By making the property more energy-efficient, the project helps reduce greenhouse gas emissions.
- CO2 Emission Reduction: The project is designed to reduce CO2 emissions by an impressive 453.6 metric tons per year, making a substantial impact on environmental sustainability.
For the Community:
- Workforce Housing Opportunities: The redevelopment created 292 new rental housing units in the Park Road/West Hartford area, meeting the growing local demand for housing.
- Affordable Housing Opportunities: 10% of the units were reserved for affordable housing for applicants earning less than 80% of the area median income for West Hartford, contributing to the community’s housing needs.
- Maintaining Homes: The project ensures the retirement security of the Sisters of St. Joseph while allowing them to continue their mission of serving those in need.
- History Preservation: The project preserved the historical significance of the Sisters’ convent while revitalizing the area.
- Economic Growth: The revitalization of the Park Road business district strengthens the local economy, providing a gateway to Parkville and supporting the growth of local businesses.
The One Park Road project in West Hartford, Connecticut, exemplifies the success of C-PACE financing in providing an innovative solution that delivers significant benefits to the borrower, the environment, and the community. This project not only improves energy efficiency but also creates housing opportunities, supports local economic growth, and preserves the history of an iconic property.
CastleGreen Finance’s collaboration with Lexington Partners and the Connecticut Green Bank demonstrates how private capital can drive positive change through C-PACE financing, delivering both financial and environmental benefits that will endure for years to come.
