LOS ANGELES—Structured Finance Associates LLC has announced the origination, structuring, and funding of a PACE bond with Los Angeles County in the amount of $6,860,000 for the DusitD2 Constance Pasadena located in Pasadena, Calif.
“We are pleased to have the chance to work with the owners of the DusitD2 Constance Pasadena, K2 Clean Energy Capital, the County of Los Angeles, Sustento Group, and PACENow to make this financing possible. PACE financing for the DusitD2 Constance Pasadena is an example of the use of a new and valuable financing tool property owners can utilize in upgrading and/or the redevelopment of existing properties. We look forward to the working with commercial property owners throughout the Los Angeles area to assist them in improving the value of their properties while creating jobs and improving our environment,” said Jean Dunn, CEO of Structured Finance Associates LLC.
The project is the renovation of the original Constance Hotel built in 1926. The PACE bonds issued provided long-term fixed rate financing for the installation of energy efficiency improvements including new HVAC and controllers, LED lighting, elevator motors and controls, window treatments, water systems, and insulation within the renovated hotel. These improvements are estimated to save 207,488 kWh per year in electricity usage and reduce water consumption by 3,200,000 gallons.
“The PACE financing provided a significant piece of the capitalization of the project, enabling the owners to take advantage of long-term fixed rate financing for energy efficiency improvements. These improvements will allow the DusitD2 Constance Pasadena hotel to increase their operating cash flow and the corresponding value of the property,” said Jonathan Pickering of K2 Clean Energy Capital, who were engaged by Singpoli Pacifica LLC to develop the PACE project.
With the closing of the DusitD2 Constance Pasadena PACE bond, the total amount of PACE fundings initiated, structured, and closed by Structured Finance Associates in Los Angeles County exceeds $14 million, making Los Angeles County one of the largest commercial PACE programs in the United States.
PACE (Property Assessed Clean Energy) is a unique financing vehicle offered by local governments in states with PACE enabled legislation. PACE allows property owners to finance 100 percent of the costs needed to make energy efficient upgrades or install renewable energy on their buildings. Currently, 31 states plus Washington, D.C., have adopted PACE enabling legislation.